TikTok Shop can sell a product fast, because creators sell it for you. That speed comes with costs a normal web store doesn't have: a platform commission on every order, a commission to the creator who made the sale, free samples, and often ads on top. A product that makes money on your own store can lose money on TikTok Shop. Here is how to check before you push it.
All fee rates in this guide are assumed for illustration. TikTok Shop's fees differ by country and category, change over time and sometimes include promotional rates for new sellers. Check the current fee schedule in your Seller Center before you price a product.
The costs on a TikTok Shop order
Platform commission
TikTok Shop charges a fee on each order, usually a percentage of the amount the customer pays. Check what the fee is calculated on in your market, and whether payment processing is included in it or charged separately.
Creator (affiliate) commission
When a creator sells your product through a video or live stream, you pay them a commission that you set, as a share of the sale. It only applies to orders that creators bring in, but for a product built around creators that may be most of them. Higher commissions attract more creators, so it's tempting to raise yours. Check your margin first.
Free samples
Creators usually want to try a product before they promote it. Each sample costs you the product plus postage, and some creators who get one never post. Treat samples as a launch cost and spread it over the orders you expect.
Shipping and fulfilment
Depending on your market and setup, you ship orders yourself, use a 3PL or use TikTok's own fulfilment service where it's offered. Each has a cost per order. Some markets also have shipping fees or subsidies that change what you pay, so check how shipping is charged in your account.
Ads
Many sellers pay to promote creator videos or their own videos. Divide your ad spend by the orders it brings in.
Vouchers and discounts
TikTok Shop runs frequent promotions. Discounts you fund come out of your margin; discounts the platform funds may not. Check who pays before you join a campaign.
Returns
Refunds, return postage and items that can't be resold. Use your real return rate once you have one.
VAT and landed cost
In the UK and Germany, prices on TikTok Shop include VAT, which you pass on to the tax authority. And the product costs its full landed cost, not just the factory price.
Worked example: one order in the UK
A phone grip priced at £19.99 including VAT. We compare an order sold by an affiliate creator with an order from a video you promote yourself. All fees, rates and costs are assumed for illustration, and both commissions are assumed to be charged on the price the customer pays.
Samples first: 20 samples at £7.20 each (£4.20 landed cost plus £3.00 postage) cost £144.00. Spread over the first 400 orders, that is £0.36 per order.
| Creator affiliate order | Your own promoted video | |
|---|---|---|
| Price paid by the customer | £19.99 | £19.99 |
| VAT (20%) | £3.33 | £3.33 |
| Revenue excl. VAT | £16.66 | £16.66 |
| Landed cost | £4.20 | £4.20 |
| Platform commission (assumed 9%) | £1.80 | £1.80 |
| Shipping to customer | £3.00 | £3.00 |
| Packaging | £0.25 | £0.25 |
| Samples per order | £0.36 | £0.36 |
| Returns allowance | £0.50 | £0.50 |
| Creator commission (assumed 15%) | £3.00 | – |
| Ad cost per order | – | £4.00 |
| Profit per order | £3.55 | £2.55 |
| Net margin | 21% | 15% |
Both orders make money, but not much. Small changes in commission, ad cost or returns decide whether this product works.
Two numbers to work out
The most a sale can pay creators and ads
Before creator commission and ads, this order leaves £6.55. That is the most one sale can pay to creators, ads or both and still break even. As a share of the £19.99 price, it is about 33%.
So on these assumptions, a creator commission above about 33% loses money on every affiliate order. You want plenty of room below that line, because profit, returns and price drops all come out of the same £6.55.
Break-even ROAS for promoted videos
Divide the price by the profit before ads: £19.99 ÷ £6.55 ≈ 3.05. Promotions that return less than £3.05 in sales for every £1 spent lose money. Our guide to break-even ROAS explains how to use this number when you read ad results.
Watch the order mix
Your real margin is a blend of order types. If most orders come from creators on a 15% commission, you are close to the left column. If you also pay to promote those same creator videos, both costs fall on the same order: £6.55 − £3.00 − £4.00 is a loss of £0.45.
Track profit by order source, not just total sales. A week of record sales can still lose money if the mix shifts towards promoted affiliate orders.
Vouchers come out of profit
On the affiliate order, a £3.00 voucher that you fund cuts revenue by £2.50, because £0.50 of the £3.00 would have been VAT.
- If both commissions are charged on the price after the voucher, they fall by £0.72 between them (9% and 15% of £3.00). Profit drops from £3.55 to £1.77.
- If they are charged on the full price, profit drops to £1.05.
Check which applies in your market before you join a promotion.
Before you scale on TikTok Shop
- Calculate profit per order separately for affiliate orders and promoted orders.
- Set creator commission well below your break-even share.
- Budget for samples as a launch cost.
- Check who funds each promotion before you join it.
- Test hooks and offers with a few creators before you order a large batch. Our TikTok ad examples and UGC ad brief template help you brief them well.
Check it with Ecomtoro
Ecomtoro calculates profit per unit, net margin, ROI and break-even ROAS for TikTok Shop alongside Amazon FBA and Shopify, in the US, UK and Germany. It removes VAT, adds duty, and applies TikTok Shop's commission from a published fee table that you can override with your own rate card. Add creator commission to the ad cost per sale, and you can see straight away whether a product still pays when creators sell it.
Frequently asked questions
What fees does TikTok Shop charge sellers?
A commission on each order, which varies by country and category and changes over time. On top of that you may pay creator commissions, shipping or fulfilment costs and ads. Check the current fee schedule in your Seller Center.
How much commission should I offer TikTok creators?
Work out your profit per order before creator commission and ads, as a share of the price. Your commission has to sit well below that share, leaving room for profit, returns and any ads you run on the same orders.
Is TikTok Shop more expensive than Shopify per order?
It can be, because creator commissions and samples add costs a web store doesn't have. Creators can also replace some ad spend, so compare profit per order on each channel with your own numbers.
Should I count free samples as a cost?
Yes. Add up the product and postage for every sample, treat the total as a launch cost, and spread it over the orders you expect from the first wave of creators.
