Overview

TikTok Shop is rapidly becoming a major e‑commerce outlet, letting creators and brands sell products without leaving the TikTok app. As the user base swells, more merchants are eyeing the platform’s viral reach, but they must first understand the fee structure that will eat into their margins and shape pricing decisions.

Key Points

• Category‑based commission — TikTok Shop charges a percentage that varies by product type, starting in the low single‑digit range and climbing to about 20 % for premium categories.
• Fixed transaction charge — A processing fee similar to other marketplaces is taken per order, typically a few cents plus a small percentage of the sale amount.
• Performance‑driven ad costs — Advertising on TikTok (in‑feed, Spark, Shopping ads) is billed on a cost‑per‑click or cost‑per‑view basis through an auction system.
• Logistics fees depend on fulfillment choice — Using TikTok’s partnered shipping network adds a per‑order shipping charge, while self‑fulfillment shifts the cost to the seller’s own carrier rates.
• Return penalties are retained — When a buyer returns an item, the original commission is usually not refunded and a restocking fee may be imposed.
• Currency conversion markup — Sellers paid in a different currency than TikTok’s base currency incur a small conversion fee on each payout.

How TikTok Shop Fees Work

1. Category assignment and commission display — After a product is uploaded, TikTok Shop automatically selects the commission rate linked to the chosen category.

   • Example: A vendor lists a set of ceramic mugs under “Home & Kitchen” and sees a 12 % commission shown in the fee calculator.

2. Payment capture and processing deduction — When a shopper completes checkout, TikTok Shop processes the payment and removes a fixed processing charge.

   • Example: A customer buys a $75 blender; TikTok Shop deducts a 2.9 % fee plus a $0.30 fixed amount, leaving $73.50 before other deductions.