TikTok Shop Calculator — Frequently Asked Questions

TikTok Shop charges a marketplace commission — 6% for most US categories and 5% on jewelry and groceries, per TikTok's published US referral-fee table effective October 31, 2024 — plus promotional new-seller rates that can be lower. US payment processing is bundled into that fee rather than charged as a separate line. Unlike Amazon there is no monthly subscription fee, but you must also budget creator commissions (often 10-20% on affiliate sales) and content production — those are real costs even though the platform does not charge them.

The commission applies to the customer-paid price (including shipping paid by the buyer) and is 6% for most US categories and 5% on jewelry and groceries under TikTok's published US referral-fee structure. Affiliate sales add the creator commission on top. The calculator lets you set the commission rate per scenario so you can model regular, promotional, and affiliate-driven orders separately.

Depending on your market: seller-shipped (FBM-style, you ship from your own warehouse), TikTok-fulfilled logistics programs in some regions, or via partners. Cross-border sellers usually ship direct from China with 7-12 day delivery. Shipping cost per unit is a required input in the calculator because it swings margins more than the commission does.

TikTok Shop is content-driven: sales come from short videos and live streams, so products that demo well can explode overnight, but revenue is less predictable. Fees are lower (6% vs Amazon's ~15% referral plus FBA), and average order values are lower too. Many sellers use TikTok for launches and viral spikes, Amazon for steady baseline revenue.

Net profit = selling price − product cost − TikTok commission − payment fee − creator commission (if affiliate) − shipping − returns reserve. The calculator applies all of these and shows the margin per scenario, including a returns reserve field — TikTok's return rates in apparel can run 15-25%, so do not skip it.