How TikTok Shop Fees Work: A Complete Guide

For Scott McIntosh, riding the #TikTokMadeMeBuyIt wave once felt like striking gold. His phone-slash-cup holder invention, the Cell Phone Seat, racked up over 50 million views. 

Sales were booming. TikTok was covering shipping, eating discount costs, and fueling seller dreams with viral visibility and minimal fees. McIntosh was pulling in $1,000 a day from live shows, affiliate links, ads, and organic content.

Now? He's lucky to hit $50.

“It was just really, really good for a long time until it wasn’t,” said McIntosh.

The TikTok Shop, dubbed Cell Phone Seat

So what changed? 

• For starters, going viral made him a target
• Copycats flooded the market with knockoffs, driving down sales 
• TikTok ads became pricier and less effective, burning out faster than those on Meta platforms 
• And, worst of all, the perks that once sweetened the deal for sellers, like subsidized shipping and boosted visibility, have started to disappear

As TikTok Shop grows more crowded and chases Amazon’s dominance, small sellers are left fighting rising fees, tighter margins, and a brutal pace.

If you’re wondering how TikTok Shop fees really work (and how to stay ahead), you’re in the right place. In this guide, you'll get a full breakdown of TikTok shop fees, including the latest updates and simple ways to manage these costs while staying competitive.

Types of TikTok shop fees

So, you’ve gone viral and your TikTok Shop is buzzing-awesome! But while your product might go viral, your profits might not. 

More and more sellers (and creators) are starting to notice. 

“TikTok never intended to take the loss for long but hey, those discounts were nice. 8% is a pretty absurd fee,” said one Redditor in a now-viral thread, echoing the frustration of many who’ve tried to make sense of these fees.

Now, before you start counting your profits, let’s talk fees to avoid any surprises and keep your earnings on track.

1. Marketplace commission fees

When a buyer receives an order, TikTok Shop deducts a commission fee from your payout. This fee is a percentage of the item price (after your seller discount) excluding shipping and TikTok discounts and varies by product category and seller type.

There are two commission structures:

• Marketplace Commission: For standard sellers using TikTok Shop to list and sell products
• Mall Commission: For sellers enrolled in TikTok Shop Mall, which is a virtual shopping mall premium program that offers greater exposure, trust signals, and exclusive campaign access. These sellers pay a higher fee in exchange for added visibility and sales opportunities

Because these two seller types offer different customer experiences, their commission rates also differ by category. 

TikTok commission rates (Malaysia, incl. 8% SST)

In the above table, note that “commission” refers to the percentage TikTok deducts from each completed sale. 

While the marketplace commission applies to general TikTok Shop sellers, the mall commission is applied to TikTok Shop Mall sellers — typically, more established brands invited to the Mall program.

These two types are not stacked, and a seller is only charged one commission type depending on their status. So you’ll either pay a Marketplace Commission or a Mall Commission, not both.

TikTok Shop calculates the commission based on the item price after deducting your seller discount. It does not include shipping fees or TikTok Shop discounts in the commission fee calculation.

Here’s how you can calculate the marketplace commission fees:

Commission Fee = (Item Price − Seller Discount) × Fee Rate

The fee rate is the applicable percentage from the table above, based on your product category and seller type.

For example, let’s say you sell a guitar priced at $210 and apply a seller discount of $21. The buyer ends up paying $189.

TikTok Shop calculates fees based on the discounted amount ($189), not the original price.

• The commission rate is 7.02%, which includes:
  • A 6% base commission for Marketplace sellers
  • Plus a 1.02% service fee
  • So, 7.02% of $189 = $13.27
• An additional transaction fee of 3.78% is also applied:
  • 3.78% of $189 = $7.14

That brings your total fee deduction to $20.41.

💡 These fees are taken out after every completed order, so it’s essential to factor them into your pricing to protect your margins.

Commission rate by product categories

The commission fee is a specific percentage of the total amount of a completed order. TikTok Shop charges this fee to sellers who use the platform. The commission fee rate, which includes applicable taxes like value-added tax (VAT), ranges from 5% to 9%.

Commission rate by product categories Image Source

After the new seller reduced the commission period, these sellers qualify for a reduced commission rate:

• New sellers (during their introductory period)
• Sellers offering products in the Electronics category
• Select categories within Beauty & Personal Care
• Sellers who complete Seller Missions

2. Affiliate commission fees

You can increase your sales on TikTok Shop by partnering with creators through the Affiliate Programme. An affiliate is a TikTok creator who agrees to promote and sell your products.

Take @woodworkingfun, for instance a comparatively small but focused TikTok account with around 196.5k followers. Their content is all about woodworking, and the link in their bio leads to a product with an average $67 commission per sale. 

WoodWorking’s official page on TikTok

For every sale made through an affiliate, you give them a commission as agreed under the affiliate plan through the TikTok Shop Affiliate Marketing module.

TikTok Shop deducts this commission automatically once the buyer completes the order, and no cancellation or refund occurs during the settlement period. 

TikTok Shop calculates the commission using this formula:

Affiliate Commission Fee = Affiliate Commission Rate × (Item Price − Seller Discount − TikTok Shop Discount)

For example:

• Black backpack: $850 
• Seller discount: $50
• Item price after discount: $800
• Affiliate commission rate: 12%
• Affiliate commission fee: $800 x 12% = $96 for each sale

TikTok Shop deducts that from your payout automatically. You keep control over the rate through the affiliate plan you set, so you can adjust it to match your goals.

3. Transaction fees

TikTok Shop deducts a transaction fee from your payout after the buyer receives and confirms the order as delivered. This fee applies to all valid orders meaning any order that is successfully paid for, shipped, and not canceled, returned, or refunded.

The transaction fee covers processing and handling on the platform’s end and is charged to both local and cross-border sellers.

Fee rates:

• Before September 5, 2024: 2.16% (SST included)
• From September 5, 2024: 3.78% (SST included)

Formula:

Transaction Fee = (Customer Payment − Customer Order Refund) × Fee Rate

For example:

If a buyer pays $200 and there’s no refund, the transaction fee at 3.78% rate will be $7.56.

Refunds & cancellations:

• Full return: Full fee refunded
• Partial return: Fee refunded for the returned item
• Canceled orders: No fee charged

You can view fee details in Seller Center:

• Pending: Finance > Transactions > To Settle > View Details
• Completed: Finance > Withdrawals > Settled > View Details

Once the order settles, the platform automatically applies the transaction fee, so you don’t need to take any extra steps. Just monitor your dashboard to stay updated.

4. Referral fees (US only)

In the US, TikTok Shop charges sellers a referral fee on all qualified transactions, which is a combination of marketplace commission and transaction fees. This fee includes all platform service charges except for shipping and tax-related costs. 

Starting April 1, 2024, TikTok Shop raised the referral fee to 6% per order for most product categories. For jewelry accessories and derivatives, as well as any precious jewelry orders, the platform has lowered the fee to 5% per order.

You can calculate the referral fee using this formula:

Referral Fee = Referral Fee Rate × (Customer Payment + Platform Discount − Tax)

Note: The platform discount (not the same as the seller discount) is covered by TikTok Shop as part of its own marketing campaigns or subsidies. It is funded by TikTok and added to your payout. 

Referral fee changes as per the order, let’s calculate it for each scenario:

1. Full order

Customer Payment: $102

Platform Discount: $5

Taxes: $2

Referral Fee = 6% × ($102 + $5 − $2) = $6.30

2. Partial refund

If the same order gets partially refunded, and the refund values are:

Customer refund: −$51

Platform refund discount: −$2.50

Tax refund: −$1

Adjusted order value = ($102 − $51) + ($5 − $2.50) − ($2 − $1) = $51 + $2.50 − $1 = $52.50

Referral Fee = 6% × ($102 − $51 + $5 − $2.5 − $2 + $1) = $3.15

⚠️ Refund administrative fee (Separate from referral fee)

TikTok Shop also charges a refund administrative fee on refunded orders.

Here’s how it works:

• If 50% of the original order is refunded, TikTok charges 20% of the original referral fee as a penalty
• This helps offset platform service costs even when part of the order is returned

For example:

• Original Referral Fee: $6.30
• 50% of the order refunded → TikTok charges 20% of $6.30 = $1.26
• Since only half was refunded: Administrative Fee = $1.26 × 50% = $0.63

💡Note: This fee is deducted separately and is not part of the referral fee. Always factor this in when processing partial refunds.

3. Full refund

If the customer pays $102, receives a full refund of $102, the platform discount is $5, and taxes total $2, the referral fee would be:

• Referral Fee = 6% × ($102 − $102 + $5 − $5 − $2 + $2) = 6% × $0 = $0

Since the platform returns the full payment, the referral fee is cancelled. However, TikTok Shop still charges an administrative refund fee based on the original referral fee, before the refund is processed.

• Original referral fee (before refund): 6% × ($102 + $5 − $2) = 6% × $105 = $6.30
• Refund administrative fee = $6.30 × 20% = $1.26

💡 This means that even if the buyer is fully refunded, the seller still pays a small administrative fee to TikTok Shop.

5. Flash sale service fees

When an order is successfully placed through flash sales (FS) and delivered to customers, TikTok Shop will automatically deduct a fee ranging from 2.5% to 3% from the final order settlement. This fee is called the flash sale service fee.

💡Note: This fee is VAT inclusive where applicable. In countries where VAT doesn't apply (e.g., the US), the fee is still deducted, but without the VAT component.

This fee is calculated before applying any platform discounts or shipping charges. This means only the seller discount is considered when determining the final price used for fee calculation.

Here’s how you can calculate the flash sales service fees:

FS Service Fee = Fee Rate × Seller Price after Seller Discount effective during FS

If you enroll in TikTok Shop’s Shipping Fee Program (SFP), the platform may subsidize a portion (or all) of the shipping costs for your customers, making your products more attractive during promotional events, such as flash sales. Participation in this program can significantly boost conversion rates, particularly for orders involving a single product.

Let’s say you have an order that meets FS criteria and includes only one product:

• Original price: $20
• Seller discount: $2
• Platform discount: $4
• Shipping fee: $1
• Seller price after seller discount effective during FS: $18 (This is the amount used for calculating FS service fee, regardless of platform discount.)

FS Service Fee = $18 × 2.5% = $0.45

Platform discounts and Flash Sale (FS) discounts are not the same. In this case, the referral fee is calculated based only on the seller’s discounted price during the flash sale — platform-funded promotional discounts do not affect this calculation.

6. Other fees/adjustments

In addition to marketplace commission and transaction fees, several other costs come with running a TikTok Shop. These include:

Here’s a detailed breakdown of them:

Comparison with other marketplaces

Here's a detailed comparison of the marketplaces fees associated with TikTok Shop, Amazon, eBay, and Shopify:​

Updates and changes in TikTok shop fees

TikTok Shop has introduced new fee changes aimed at boosting seller growth and driving conversions:

• New Seller Discount: Starting April 1, 2025 (GMT-8), new sellers who place their first order and reach any GMV within 60 days of onboarding will get a reduced 3% referral fee for 30 days. The discount activates within 48 hours of your first order. After 30 days, standard category fees apply. TikTok may change or end this offer anytime
• Co-Funded Free Shipping (UK): TikTok has rolled out a  shared-cost shipping model, splitting free shipping expenses with sellers to increase customer coverage and drive higher conversion rates

As TikTok doubles down on AI-powered discovery and content-driven commerce, expect future fees to align more with performance metrics. Staying updated will be key to protecting your margins.

5 Tips for managing TikTok shop fees

Managing TikTok Shop fees starts with smart planning, but success comes from continuous tracking and smart adjustments as your business grows.

1. Price products strategically

Consider all costs when setting your prices. First, calculate the full selling cost per item including all TikTok Shop deductions. 

If the cost to produce an item is $150 and the fees deducted are $50, you should charge $200 to make at least $50 per order. 

You should keep an eye on fee updates and price your product accordingly. 

2. Optimize shipping costs 

Shipping can make or break your margins especially if you’re covering the cost to stay competitive. 

Options worth exploring:

• Fulfilled by TikTok (FBT): TikTok handles storage, packing, and shipping — often at lower rates
• Third-Party Logistics (3PL): Partnering with a reliable 3PL can cut costs while improving delivery speed

Efficient shipping reduces returns, lowers cart abandonment, and boosts customer loyalty.

3. Leverage promotions wisely

Running promotions on TikTok Shop can significantly increase visibility and sales, but only if they are targeted and data-driven. First, align each promotion with a specific goal:

• Want to attract first-time buyers? 
  • Use a “New Buyer Only” discount. It’s simple and targeted
  • Some shops also run a “99 Cents” deal, where, as the name suggests, the seller offers a single product for just 99 cents. This is designed to attract new customers with a low commitment

The 99 Cents Deal on TikTok

• Looking to increase volume on slow-moving inventory? 
  • Go for a Flash Deal, which is a limited-time promotion you can set up directly in the Seller Centre to create urgency and drive quick conversions
• Promoting seasonal items? 
  • Bundle complementary products with a Buy More, Save More format. This order-based promotional tool enables sellers to offer discounts once customers meet specific purchase criteria, making it ideal for encouraging larger orders on curated product sets. It’s great for themed collections or upselling accessories

To set up these promotions, head to your TikTok Shop Seller Center > Promotions tab, where you can choose from built-in templates like “Add-on Deals,” “Flash Deals,” “Free Shipping,” or custom vouchers.

Before launching, test discount thresholds. For example:

• Fast fashion or beauty products might perform best with high-frequency, low-discount flash deals
• High-ticket or niche items, such as electronics or crafts, often benefit from limited-time bundles that emphasize value over deep discounts

After your campaign, pull ecommerce performance metrics, such as conversion rate, AOV (average order value), and ROI on ad spend, directly from your Promotions Dashboard. Use these insights to double down on what works and scrap what doesn’t.

4. Track profitability regularly

You must monitor your overall profits and profitability often, not just at tax time or during big campaigns. To do so, use tools that give you a clear view of sales, fees, taxes, returns, and actual profit per product and that streamline your tax filing process.

If you track margins per channel weekly or monthly, you can quickly spot dips and fix them before they snowball into bigger losses. That’s where Webgility steps in as a reliable automation partner.

Webgility connects your TikTok Shop with QuickBooks, sending every order straight from your online store into your accounting system. 

With Webgility, you can get:

• Actionable insights: Monitor your business performance with detailed reports on all orders, enabling better financial and inventory decisions
• Automated accounting: Sync TikTok Shop with QuickBooks to post all transactions automatically and save hours of manual entry
• Automated inventory: Sync inventory with every TikTok Shop sale. Webgility adjusts stock levels in QuickBooks in real time and helps you avoid overselling
• Unified order management: Centralize your operations by tracking all TikTok Shop orders, refunds, and payments alongside your Shopify, BigCommerce, or Wix sales
• Sales tax compliance: Webgility automatically imports the sales tax collected, simplifying filing and maintaining compliance

When you automate operations with Webgility, you reduce manual work and free up time to focus on profit-driving tasks.

5. Utilize seller incentives

TikTok Shop introduces limited-time programs that reduce fees or increase visibility. If you’re a new seller, you may qualify for lower commission rates and promotional boosts for the first few months. 

TikTok has a ‘Specialized Rewards Program’ that offers additional monetization opportunities for selected creators. This is awarded on top of the Creator Rewards Program earnings, allowing TikTok to further incentivize top creators in niche areas.

Wrapping Up: Sell on TikTok easily and affordably

The TikTok Shop fee structure plays a big role in how you grow and profit on the platform. When you understand all the platform fees, you make smarter decisions, control your costs, and take advantage of every opportunity. 

As the #1 QuickBooks connector, Webgility simplifies this process by tracking each TikTok sale, refund, fee, and tax, offering detailed insights into every payout. Here’s how you can get started:

• Install the TikTok app: First, install the app from the Shopify, BigCommerce, or Wix App Store. This will allow Shopify to start importing all your TikTok orders automatically
• Connect to Webgility: Link your store to Webgility. Once connected, Webgility imports all orders, including those from TikTok
• Sync with QuickBooks: Synchronize your data with QuickBooks to automate bookkeeping tasks and eliminate manual errors
• Manage TikTok orders (coming soon!): Use advanced rules to filter and process TikTok orders separately within your accounting system

Set up Webgility now and take full control of your TikTok business costs.

FAQs

How are TikTok Shop fees calculated, and what do they include?

TikTok Shop calculates fees based on item price after discounts. Depending on how you set up your product and promotions, these include commission, transaction charges, and optional affiliate costs.

Are TikTok Shop fees changing in 2024 or 2025, and what are the new rates?

Yes, TikTok adjusted rates in September 2024. New transaction rates now range from 2.16% to over 3.78%, depending on your setup.

How do TikTok Shop fees compare to other e-commerce platforms?

TikTok Shop generally charges a lower base commission than Amazon and eBay but lacks Shopify’s flat subscription model. You may face higher promo costs if you depend heavily on influencer traffic.

What is the impact of TikTok Shop fees on seller profit margins?

TikTok Shop fees directly affect margins. If you don’t price carefully, they reduce your profits. Sellers who track discounts, commissions, and transaction charges avoid pricing mistakes and protect revenue.