TikTok Platform Commission
TikTok Shop charges sellers a referral fee on every transaction completed through the platform. This commission is TikTok's primary revenue mechanism for its e-commerce marketplace and applies to all orders regardless of how the buyer discovered the product -- whether through organic content, live shopping sessions, or paid promotions.
In 2026, TikTok's standard referral fee sits at 5% for most product categories, though several high-demand categories carry an elevated rate of 8%. These rates apply to the total order value including the product price and any shipping charges paid by the buyer. TikTok deducts the referral fee before disbursing funds to the seller, so the amount hitting your account is already net of this cost.
New sellers may benefit from a temporary reduced commission rate during their first 90 days on the platform. TikTok has periodically offered promotional rates as low as 1.8% for new merchants to encourage onboarding. However, these promotional windows change frequently, so verify the current offer in TikTok Seller Center before building it into your margin calculations.
Understanding where these fees land relative to other e-commerce platforms adds useful context. Amazon charges referral fees between 8% and 15% depending on category. Shopify charges nothing in referral fees but requires a monthly subscription and payment processing costs. TikTok's 5-8% rate positions it as one of the lower-cost marketplace options, particularly for sellers who can leverage organic content reach to drive sales without additional advertising spend.
Rates by Product Category
TikTok groups products into categories, and each category carries a specific referral fee percentage. The distinction between 5% and 8% categories is driven by the margin profile of the products and the competitive dynamics of each market. Higher-margin categories like beauty and fashion absorb the 8% rate more easily, while lower-margin categories like electronics would become uncompetitive at that level.
Beauty and Personal Care: 8%. This is TikTok Shop's largest and most active product category. Skincare, cosmetics, haircare, and grooming products all fall under this rate. The 8% commission reflects the typically strong margins in beauty -- most beauty products carry 60-80% gross margins, making the referral fee manageable. Beauty content performs exceptionally well in TikTok's short-form video format, which drives high conversion rates and makes the platform fee worthwhile for most sellers.
Fashion and Accessories: 8%. Clothing, shoes, bags, jewelry, and fashion accessories are charged at the higher tier. Fashion is TikTok Shop's second-largest category, and the visual nature of fashion content drives strong organic discovery. Sellers in this category should factor the 8% fee into their pricing strategy, particularly for lower-priced items where the margin impact is proportionally larger.
Health and Wellness: 8%. Supplements, fitness accessories, wellness devices, and health-related products fall into the 8% bracket. This category has grown significantly on TikTok Shop as health influencers and fitness creators drive product discovery through authentic content. Compliance requirements for health product listings are stricter than other categories, so factor in the additional operational costs alongside the commission rate.
Electronics and Gadgets: 5%. Consumer electronics, phone accessories, smart home devices, and tech gadgets carry the lower 5% rate. Electronics margins are typically thinner than beauty or fashion, and TikTok's lower fee reflects this reality. The 5% rate makes TikTok Shop competitive with Amazon for electronics sellers, particularly those who can generate organic traffic through tech review content.
Home and Garden: 5%. Home decor, kitchen tools, gardening equipment, and home improvement products are assessed at 5%. This category has seen steady growth on TikTok Shop as home-related content -- particularly organization, cleaning, and DIY -- consistently performs well on the platform.
Food and Beverages: 5%. Packaged food, snacks, beverages, and specialty food items carry the standard 5% referral fee. Food sellers face additional logistics considerations around shelf life and packaging requirements, but the commission structure is among the most favorable on the platform.
Additional Fees
The referral fee is not the only cost of selling on TikTok Shop. Several additional fees reduce your effective margin and must be accounted for in your profit calculations.
Payment processing fee: approximately 2%. TikTok charges a transaction fee to cover payment processing costs. This fee applies to every order on top of the referral commission. Combined with the referral fee, your total platform cost ranges from 7% (for 5% categories) to 10% (for 8% categories) before you account for any other expenses.
Shipping costs. TikTok Shop requires sellers to handle their own shipping in most markets, and shipping costs are the seller's responsibility unless the buyer pays a separate shipping fee. For lightweight products, shipping through TikTok's partnered carriers can be cost-effective. For heavier or bulkier items, shipping costs can significantly erode margins. Offering free shipping increases conversion rates but shifts the full cost to the seller -- model this carefully before committing.
Affiliate commissions. If you use TikTok's affiliate program to have creators promote your products, you set your own commission rate. Affiliate commissions typically range from 5% to 20% of the sale price, paid by the seller on top of TikTok's referral fee. A seller in the beauty category offering a 15% affiliate commission pays a combined 25% in fees and commissions (8% referral + 2% processing + 15% affiliate). This stacking of fees is the single most important cost to understand and plan for when using TikTok Shop's affiliate network.
Returns and refunds. TikTok Shop has a buyer-friendly return policy, and sellers bear the cost of processing returns. Depending on your category, return rates can range from 5% to 15%, with fashion and apparel at the higher end. The referral fee on returned orders is typically refunded, but you absorb the shipping and handling costs in both directions.
How to Reduce Your Costs
Selling on TikTok Shop profitably requires managing the cumulative impact of platform fees, shipping, and affiliate costs. These strategies can improve your effective margin.
Bundle products to increase average order value. A higher order value spreads fixed shipping costs across more revenue and improves your margin per order. If you sell skincare, bundle a cleanser and moisturizer rather than selling each individually. The referral fee percentage stays the same, but your shipping cost as a percentage of revenue drops.
Optimize packaging and shipping weight. Lighter, more compact packaging reduces shipping costs per order. Work with your manufacturer or fulfillment provider to minimize package dimensions and weight without compromising product protection. Even small reductions in per-package shipping cost compound meaningfully across hundreds or thousands of orders.
Negotiate affiliate commission rates strategically. Rather than offering a flat high commission to all affiliates, create a tiered structure. Offer lower rates (5-8%) as a baseline and increase commissions for top-performing affiliates who consistently drive volume. This approach keeps your average affiliate cost lower while still incentivizing your best promoters.
Use TikTok's promotional credits and subsidies. TikTok periodically offers seller subsidies, shipping discounts, and promotional credits to drive marketplace activity. Monitor TikTok Seller Center for these opportunities and plan product launches or promotions around them. Free shipping subsidies alone can add 3-5% back to your margin on qualifying orders.
Drive organic traffic to reduce paid acquisition costs. The most powerful lever on TikTok Shop is organic content. Sellers who create their own content or build relationships with creators who genuinely use their products can drive significant sales volume without paying affiliate commissions on every order. Invest in building your brand's TikTok presence -- the long-term margin advantage of organic sales versus affiliate-driven sales is substantial.
Price products with the full fee stack in mind. Work backward from your target margin. If you need a 40% gross margin after all costs, calculate the product price that delivers that margin after accounting for TikTok's referral fee, payment processing, shipping, affiliate commissions, and estimated return costs. Sellers who price based on product cost alone and treat platform fees as an afterthought consistently underperform on profitability.