1. Fee Structure Overview
TikTok Shop's fee structure is simpler than many other marketplaces, but understanding each component is essential for accurate profit calculations. Here's a quick summary of all fees as of January 2026:
| Fee Type | Amount | Applies To |
|---|---|---|
| Referral Fee | 6% | All orders (product + shipping paid by customer) |
| Transaction Fee | $0 (Eliminated) | Previously $0.30/order, removed April 2024 |
| Affiliate Commission | 0-50% | Only on affiliate-driven sales (seller sets rate) |
| FBT Fulfillment Fee | $3.58+ | Only if using Fulfilled by TikTok |
| Refund Admin Fee | 20% of ref. fee (max $5) | Only on refunded orders |
Good news: TikTok Shop has some of the lowest marketplace fees compared to Amazon (8-15%), eBay (12.9-15%), and others.
2. Referral Fee (6%)
The referral fee is TikTok Shop's primary revenue source from sellers. It's a straightforward percentage applied to every sale.
How the Referral Fee Works:
- • Rate: 6% for most categories (some categories may vary slightly)
- • Calculated on: Product price + any shipping paid by customer
- • When charged: Deducted from your payout after order completion
- • Minimum fee: No minimum - percentage applies to all order values
Example Calculation
Product sells for $50, customer pays $5.99 shipping
Referral Fee = ($50 + $5.99) × 6% = $3.36
3. Transaction Fee (Eliminated)
✅ Good News for Sellers
TikTok Shop eliminated the $0.30 per-transaction fee in April 2024. This means you no longer pay any fixed fee per order—only the percentage-based referral fee.
Why this matters: The elimination of the transaction fee particularly benefits sellers with lower-priced items. Previously, a $10 item would pay $0.30 + 6% ($0.60) = $0.90 in fees (9% effective rate). Now it's just $0.60 (6%).
4. Affiliate Commission
TikTok Shop's affiliate program allows creators to promote your products and earn a commission on sales they generate. This is optional but highly recommended for visibility.
You Set the Rate
Sellers choose commission rates from 0% to 50%+. Typical rates range from 10-25% depending on product margins and competition.
Only on Affiliate Sales
You only pay commission when an affiliate drives the sale. Direct sales through your shop page have no affiliate commission.
⚠️ Important: Stacking Fees
Affiliate commission is charged in addition to the 6% referral fee. If you set a 20% affiliate rate, you'll pay 26% total on affiliate-driven sales.
5. FBT Fulfillment Fees
Fulfilled by TikTok (FBT) is TikTok's warehouse and shipping service, similar to Amazon FBA. If you use FBT, you'll pay fulfillment fees based on your product's size and weight.
| Product Size | Approx. FBT Fee |
|---|---|
| Small (under 1 lb) | $3.58 - $4.50 |
| Standard (1-3 lbs) | $4.50 - $6.00 |
| Large (3+ lbs) | $6.00+ |
| Oversize | $8.00+ |
FBT Pros
- • Faster shipping (1-3 days)
- • "Fulfilled by TikTok" badge
- • Better algorithm visibility
- • TikTok handles returns
FBT Cons
- • Higher per-order costs
- • Less control over packaging
- • Storage fees may apply
- • Inventory tied up in TikTok warehouses
6. Refund Administration Fee
When a customer returns a product, TikTok Shop charges a Refund Administration Fee. This fee is designed to offset the processing costs of refunds.
How It Works:
- • Amount: 20% of the original referral fee, capped at $5.00
- • Example: $50 sale → $3.00 referral fee → $0.60 refund admin fee
- • Why it matters: Factor 8-12% refund rate into your profit calculations
8. Comparison with Other Platforms
| Platform | Referral Fee | Transaction Fee | Fulfillment |
|---|---|---|---|
| TikTok Shop | 6% | $0 | $3.58+ (FBT) |
| Amazon FBA | 8-15% | $0.99/item | $3.22+ |
| eBay | 12.9-15% | 3% | Self |
| Shopify | 0% | 2.9% + $0.30 | Self/3PL |
9. Tips to Minimize Fees
1. Optimize Affiliate Commission Rates
Start with lower rates (10-15%) and increase only for top-performing products. Monitor which affiliates actually drive sales.
2. Consider Self-Fulfillment for High-Margin Items
If your products have good margins and you have efficient fulfillment, self-shipping can save $2-4 per order vs FBT.
3. Reduce Return Rates
Better product photos, accurate descriptions, and quality control reduce returns and associated fees.
4. Bundle Products
Bundles increase average order value while keeping per-order fulfillment costs the same.
Calculate Your TikTok Shop Profit
Now that you understand the fee structure, use our free calculator to find your exact profit margins.
Use the Profit Calculator →