TikTok Shop charges sellers a combination of fees that typically total between 8% and 15% of each sale's gross value. The four primary fees are platform commission (5% standard, reduced to as low as 2% for new sellers in their first 90 days), a payment processing/transaction fee of 2.8% plus $0.30 per order, variable shipping costs, and potential return-related expenses. For a $25 product, these combined fees eat roughly $3.50 to $5.00 of your revenue before accounting for product cost. Understanding exactly where your money goes is the difference between a profitable TikTok Shop business and one that bleeds margin on every sale.
Complete Breakdown of TikTok Shop Seller Fees and Costs Explained
TikTok Shop's fee structure in 2026 has four distinct components, each charged at different stages of the transaction. Here is the complete breakdown:
| Fee Type | Amount | When Charged | Notes |
|---|---|---|---|
| Platform Commission | 5% of order subtotal | At order completion | Reduced to 2% for new sellers (first 90 days). Was 8% in 2024 before TikTok's rate reduction. |
| Transaction Fee | 2.8% + $0.30 per order | At payment processing | Covers credit card/payment processing. Applied to every transaction regardless of seller tenure. |
| Shipping Cost | $3.50 – $8.00+ per order | When label is created | Varies by weight, dimensions, destination, and carrier. Seller can absorb or pass to buyer. |
| Return Processing | $2.00 – $6.00 per return | When return is processed | Includes return shipping label + restocking. Average return rate on TikTok Shop is 8-12%. |
On a $25 sale with standard commission, your fees break down as follows: $1.25 platform commission + $1.00 transaction fee ($0.70 + $0.30) + approximately $4.50 shipping = $6.75 in total fees, or 27% of the sale price. This is before your product cost, which means your product cost needs to stay below roughly $13-$15 to maintain a viable margin.
Calculate your net TikTok Shop profit →
The single most important thing to understand about TikTok Shop fees is that they are layered, not flat. Unlike platforms like Etsy or eBay where you can point to one primary fee percentage, TikTok Shop's costs compound across multiple fee types. Sellers who only account for the 5% commission when pricing products routinely underestimate their total costs by 40-60%.
How Complete Breakdown of TikTok Shop Seller Fees and Costs Works
Each fee component serves a different function within TikTok's marketplace infrastructure, and knowing how they work helps you identify where you have leverage to reduce costs.
Commission
TikTok Shop's platform commission is the most visible fee and the one that has changed the most since the marketplace launched. In 2024, the standard commission rate was 8%. TikTok reduced this to 5% in mid-2025 as part of a push to attract more sellers to the platform and compete with Amazon and Shopify.
For new sellers in 2026, TikTok offers an additional incentive: a reduced commission rate during your first 90 days. This introductory rate drops to as low as 2%, depending on your product category. Beauty and fashion products typically receive the 2% introductory rate, while electronics and higher-ticket categories may see introductory rates of 3-4%.
The commission is calculated on the order subtotal — that is, the product price before shipping and taxes. If you sell a product for $30 with $5 shipping, TikTok takes its 5% commission on the $30, not the $35 total.
One detail sellers often miss: commission rates also vary slightly by product category at the standard tier. Beauty and personal care products are charged exactly 5%, while some electronics subcategories see rates of 5.5-6%. Always verify your specific category's rate in TikTok Seller Center before finalizing your pricing.
Understanding how commissions interact with TikTok Shop affiliate commission rates is also critical. If you use affiliates to promote your products, you pay the affiliate's commission rate on top of TikTok's platform commission. A product sold through an affiliate earning 15% costs you 15% (to the affiliate) + 5% (to TikTok) = 20% in commissions before transaction fees and shipping.
Transaction fees
The transaction fee of 2.8% plus $0.30 per order covers payment processing — the cost of handling credit card, debit card, and digital wallet payments through TikTok's checkout system. This fee is non-negotiable and applies to every single transaction regardless of your seller tier, tenure, or volume.
The flat $0.30 per-order component makes this fee disproportionately expensive for low-priced items. On a $10 product, the transaction fee totals $0.58 (5.8% of the sale). On a $50 product, it totals $1.70 (3.4%). This is one reason why products in the $20-$50 range tend to yield better margins than ultra-cheap items — the fixed component of the transaction fee has less relative impact.
TikTok does not currently offer any volume discounts on transaction fees. Even sellers processing thousands of orders per month pay the same 2.8% + $0.30 rate as a seller with 10 orders per month. This is an area where many sellers hope for future changes, but as of February 2026, the rate is universal.
Shipping
Shipping costs are the most variable component of TikTok Shop seller fees, and they represent the area where sellers have the most control over their total cost structure.
TikTok Shop offers two shipping models: seller-fulfilled shipping and TikTok-fulfilled shipping (similar to Amazon FBA). With seller-fulfilled shipping, you purchase shipping labels through TikTok's discounted carrier partnerships or use your own carrier accounts. TikTok's negotiated rates typically run 10-20% below retail carrier prices, making them competitive for most sellers.
Average shipping costs on TikTok Shop break down roughly as follows: lightweight items under 1 lb cost $3.50-$5.00 to ship domestically, items between 1-3 lbs run $5.00-$7.00, and heavier items above 3 lbs cost $7.00-$12.00+. These ranges assume standard ground shipping within the continental United States.
The strategic decision sellers face is whether to offer free shipping (absorbing the cost into their product price) or charge shipping separately. Data from TikTok Shop in 2025-2026 suggests that free shipping listings convert 15-25% better than listings with separate shipping charges, even when the total price is equivalent. Most successful sellers bake shipping into their product price and advertise "free shipping" in their listings and content.
TikTok Shop Seller Fees and Costs Breakdown Data and Numbers
To see how fees compound across different product price points, here is a detailed comparison of total costs at various price tiers:
| Product Price | Commission (5%) | Transaction Fee | Shipping (avg) | Total Fees | Fee % of Price | Breakeven Product Cost |
|---|---|---|---|---|---|---|
| $10 | $0.50 | $0.58 | $3.50 | $4.58 | 45.8% | $5.42 |
| $15 | $0.75 | $0.72 | $3.75 | $5.22 | 34.8% | $9.78 |
| $25 | $1.25 | $1.00 | $4.00 | $6.25 | 25.0% | $18.75 |
| $35 | $1.75 | $1.28 | $4.50 | $7.53 | 21.5% | $27.47 |
| $50 | $2.50 | $1.70 | $5.00 | $9.20 | 18.4% | $40.80 |
| $75 | $3.75 | $2.40 | $5.50 | $11.65 | 15.5% | $63.35 |
| $100 | $5.00 | $3.10 | $6.00 | $14.10 | 14.1% | $85.90 |
The "breakeven product cost" column shows the maximum amount you can spend on your product (including sourcing, packaging, and labor) while still breaking even before any profit. This does not account for returns, which add another layer of cost.
Returns on TikTok Shop average 8-12% of orders, depending on category. Fashion has the highest return rate (12-18%), while beauty and consumables see lower rates (5-8%). Each return costs you the original shipping, return shipping, and any restocking labor. For a $25 product, a single return costs roughly $8-$12 in total, effectively wiping out the profit from 2-3 successful sales.
The products that generate the strongest margins on TikTok Shop — as identified in our analysis of best selling TikTok Shop products — tend to be lightweight, low-return-rate items priced between $20 and $50.
How to Improve Your Results
Reducing your effective fee burden on TikTok Shop requires working on multiple fronts simultaneously.
Take advantage of the new seller window. Your first 90 days at a reduced commission rate are the most profitable period you will have on TikTok Shop. Use this window to test products aggressively, build reviews, and establish sales velocity. Some sellers create new product listings specifically to launch during this period.
Optimize product weight and packaging. Shipping is your most controllable cost. Reducing package weight by even a few ounces can drop you into a lower shipping tier. Use poly mailers instead of boxes where product protection allows. Consider flat-rate shipping options for heavier items.
Price above $20. The math is clear: products under $15 lose a disproportionate share of revenue to the flat $0.30 transaction fee and fixed shipping minimums. If your product naturally retails below $15, consider bundling multiple units to raise the average order value.
Minimize returns through accurate content. The most expensive fee on TikTok Shop is the one you do not see coming — returns. Products that match their video representation closely see return rates 30-40% lower than products where the video exaggerates features or results. Honest, accurate product content is not just good ethics; it is a direct cost-reduction strategy.
Leverage affiliates strategically. While affiliate commissions add a cost layer, affiliates who produce viral product content can generate sales volume that more than compensates for their commission. The key is setting affiliate commission rates high enough to attract quality creators without eroding your margin below sustainability.
Calculate Your TikTok Shop Seller Fees and Costs Breakdown
Every product and seller situation is different, which is why calculating your specific fee exposure before committing to a product line is critical.
Calculate your net TikTok Shop profit →
Our TikTok Shop profit calculator lets you input your exact product price, cost of goods, shipping costs, and expected return rate to see your true net profit per sale. The calculator automatically applies the current commission and transaction fee rates so you do not need to compute each layer manually.
Run the numbers for at least three price points in your target category. Compare the per-unit profit and projected monthly earnings at each tier. In most cases, you will find a sweet spot where margin percentage and conversion volume intersect to maximize total monthly profit — and that sweet spot is rarely at the lowest price point. Data-driven pricing decisions, not gut instinct, separate profitable TikTok Shop sellers from those who quit after 90 days.