TikTok Shop Profit Calculator
Understanding TikTok Shop Fees & Profitability
Selling on TikTok Shop offers massive reach, but the fee structure can be complex. To accurately calculate your TikTok Shop Profit, you must account for several distinct costs that eat into your margins.
Referral Fees: This is the percentage TikTok takes for connecting you with a buyer. While it started low at 2% for many sellers, it has transitioned toward a standard 8% for most categories. Always check your specific category in the TikTok Seller Center.
Transaction Fees: Like any payment processor, TikTok charges to handle the credit card or wallet transaction. This is typically calculated as a percentage (e.g., 2.9%) plus a small fixed fee (e.g., $0.30) per order.
Key Metrics for TikTok Sellers
1. COGS (Cost of Goods Sold): This is what you paid your manufacturer for the item. It is the baseline of your expenses.
2. Affiliate Commission: If you use the TikTok Affiliate program (creators selling your products), you must factor in the commission you promised them. This is usually between 10% and 20%.
3. Net Margin: This is your take-home percentage. A healthy TikTok Shop margin typically falls between 20% and 40% after all fees and ad spend.
Example Calculation
If you sell a "Glow Lamp" for $50.00:
- Product Cost: $15.00
- Referral Fee (8%): $4.00
- Transaction Fee (2.9% + $0.30): $1.75
- Affiliate Comm (10%): $5.00
- Shipping: $5.00
Your total costs would be $30.75, leaving you with a Net Profit of $19.25 and a margin of 38.5%.