Referral Fee Structure

TikTok Shop charges a referral fee (also called marketplace commission) on every sale. As of January 2026, the standard referral fee for most product categories in the US is 6.00%. This fee is calculated on the combined total of your item price plus any customer-paid shipping charges.

Important: TikTok-funded platform discounts (like coupons or subsidies) do NOT reduce your fee base. Even if TikTok gives buyers a $5 discount, you still pay the 6% referral fee on the full price. The subsidy reduces your net payout but not your fees.

Special Category Rates

• Jewelry Accessories: 5.00% referral fee (slightly lower than standard)
• Pre-owned Bags, Watches, Trading Cards: 5.00% for the first $10,000, then 3.00% for amounts exceeding $10,000

Affiliate Commission

Unlike the referral fee (which goes to TikTok), affiliate commissions go to creators who promote your products. You set your own affiliate commission rate, typically between 5% and 50%, though 10-25% is most common. The affiliate fee is calculated on the item price only, not including shipping.

Transaction Fee Update (2026)

Many outdated calculators still show a $0.30 transaction fee. This is incorrect. TikTok Shop eliminated the flat $0.30 transaction fee on April 1, 2024. You no longer pay this fee on US sales. There is a small $0.05 withdrawal fee when you cash out your earnings (minimum cashout is $2), but this is not a per-transaction cost.

Refund Administration Fee

When a customer returns a product, TikTok charges a Refund Administration Fee of 20% of the original referral fee, capped at $5.00 per SKU. Refunds impact your bottom line in three ways: you lose the sale revenue, you may lose the product if it's damaged, and you pay this admin fee. Most sellers factor in an 8-12% refund rate when calculating expected profitability.

Calculating your actual profit on TikTok Shop requires accounting for multiple fees, not just the headline 6% referral fee. Many sellers underestimate their true costs, leading to disappointing profit margins. Here's the complete formula:

Real Example

You sell a beauty product for $50 with a 15% affiliate commission:

• Product cost: $20
• Referral fee (6%): $50 × 0.06 = $3.00
• Affiliate fee (15%): $50 × 0.15 = $7.50
• Total fees: $10.50
• Net profit: $50 - $20 - $10.50 = $19.50
• Profit margin: 39%

Costs Sellers Often Forget

The most successful TikTok Shop sellers use calculators like this one to test different price points and ensure they maintain at least 20-30% net profit margins after all costs. Never rely on rough estimates—accurate calculations are the difference between success and failure.

Understanding how TikTok Shop's fees compare to other e-commerce platforms helps you make informed decisions about where to sell your products:

Key Insights

• TikTok Shop offers competitive baseline fees at 6%, significantly lower than Amazon (8-15%) and eBay (12.9-15%)
• However, affiliate commissions (which you set) can push total fees to 15-25%, similar to other platforms
• Shopify has the lowest fees but requires you to drive your own traffic
• Built-in traffic is TikTok Shop's biggest advantage

Understanding industry profit margin benchmarks helps you price products competitively while maintaining healthy profitability:

Avoid these seven costly mistakes that tank profitability for new TikTok Shop sellers:

Use this calculator every time you price a new product. Accurate profit calculations from day one prevent costly mistakes and ensure sustainable growth on TikTok Shop.

Setting the right affiliate commission rate is a delicate balance: too high cuts your margins, too low and creators ignore your products. Here's how to optimize:

Recommended Rates by Category

• Beauty/Skincare: 18-25% (high-value items, strong creator demand)
• Fashion: 15-20% (competitive, needed to stand out)
• Home Goods: 12-18% (lower AOV, moderate competition)
• Electronics: 8-12% (higher prices make lower % viable)

Impact on Creator Pickup

TikTok creators browse products by commission rate. A 10% rate might keep you on page 5 of results, while 20% can put you on page 1. Higher rates = more creator views = more potential sales. Test increasing rates by 3-5% if pickup is slow.

Shop Ads Commission vs Organic

You can set two rates: organic commission (standard rate) and Shop Ads commission (lower rate for when creators use their videos in your ads). For example, set organic at 18% and Shop Ads at 10% to reduce ad costs while still attracting organic creators.

Pro tip: Start at the category average, monitor pickup for 2 weeks, then adjust. If no creators are promoting your products despite good listings, your commission is probably too low.

Basic Inputs

• Selling Price: The price customers pay (exclude shipping if charged separately)
• Product Cost: Your per-unit cost including manufacturing, packaging, and inbound shipping
• Shipping Costs: If you self-fulfill, enter what you pay. If using FBT, use the FBT fee field instead
• Customer Shipping: If customers pay shipping separately, enter that amount here
• Affiliate Commission: Use the slider to set your planned rate (15-20% is typical)

Checkboxes

• New Seller Promo: Check if you qualify for the 3% promotional rate (first 30 days)
• Jewelry Category: Check if selling jewelry accessories to use the 5% rate

Advanced Options

Click "Show Advanced Options" to access refund rate, units sold, FBT fee, ad spend, packaging cost, and platform subsidy inputs for comprehensive profit calculations.

The calculator updates instantly as you type. Results show per-unit and total metrics with color-coded profit indicators to help you quickly identify winning products.