Question 1

What are TikTok Shop fees?

Accepted Answer

TikTok Shop charges a referral fee (typically 6% as of 2024), payment processing (2.9% + $0.30), and fulfillment fees if using Fulfilled by TikTok (FBT). FBT picking/packing starts around $3.58 per item. Affiliate commissions to creators are separate and set by you.

Question 2

How do I calculate affiliate commission per unit?

Accepted Answer

If you pay creators 15% commission on sales, enter 15 in the Affiliate Commission field. The calculator applies this as a percentage of your selling price. Commission rates typically range from 10-25% depending on product and creator.

Question 3

FBT vs self-fulfillment: which is cheaper?

Accepted Answer

FBT (Fulfilled by TikTok) has fixed picking/packing fees starting around $3.58. Self-fulfillment means you enter your actual shipping cost per unit. For small, lightweight items, FBT can be competitive. For heavier items or if you have existing fulfillment infrastructure, self-fulfill may cost less.

Question 4

What is a good net margin for TikTok Shop?

Accepted Answer

TikTok Shop often has lower margins than Amazon or Shopify due to creator commissions and discovery-focused ad spend. Targeting 15-20% net margin is realistic. Strong products with viral potential can sustain lower margins if they drive brand awareness.

TikTok Shop Unit Economics Calculator

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Understanding TikTok Shop Unit Economics

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