- TikTok Shop charges a referral fee of 6% in the US and 9% in the UK and the EU
- Neither TikTok's US nor its UK fee policy lists a separate payment processing charge
- In the US, refund admin fees (20% of the original referral fee, capped at $5 per SKU) are often overlooked; TikTok's UK policy refunds the full commission on a fully returned order
- US FBT (Fulfilled by TikTok) fulfilment runs from $0.99 to $8.99 per standard-size unit — factor this in before opting in
TikTok Shop fees are the costs TikTok deducts from every sale you make on its marketplace. Understanding exactly what you're paying — and what's left after — is the difference between a profitable shop and one that's bleeding money without knowing it.
The starting point matters: the headline figure on your dashboard is GMV, not revenue, and every fee below comes out of it. If that distinction is new to you, read what GMV means on TikTok Shop first — it works through a £10,000 month line by line.
This guide breaks down every fee TikTok Shop charges in 2026, with regional rates, real examples, and the hidden costs most sellers miss. Use our free TikTok Shop profit calculator to see how these fees impact your specific numbers.
TikTok Shop Commission Rates by Market (2026)
- UK: TikTok Shop charges UK sellers a 9% commission, VAT included; products in specified Electronics and Beauty & Personal Care categories may pay an effective 5% (checked 25 September 2026).
- US: TikTok Shop charges US sellers a 6% referral fee on most categories, 5% on five jewellery sub-categories, and, since 1 November 2025, adds sales tax to the fee only for sellers whose business registration address is in West Virginia or Texas (checked 25 September 2026).
- EU: TikTok Shop charges a 9% commission, VAT included, across its 13 EU markets; in Germany, Spain, France, Ireland and Italy the rate has applied since 8 January 2026, with 7% on electronics, including electronic beauty devices.
| Market | Standard rate | Reduced category rate | Tax on the fee | Checked | Source |
|---|---|---|---|---|---|
| UK | 9% | Effective 5% may apply to specified Electronics and Beauty & Personal Care categories | VAT included | 25 September 2026 | UK commission policy; VAT |
| US | 6% | 5% on five jewellery sub-categories and some pre-owned categories | Sales tax added for West Virginia and Texas sellers only | 25 September 2026 | US referral fees by category; sales tax notice |
| Germany, Spain, France, Ireland, Italy | 9% | 7% on electronics, including electronic beauty devices | VAT included | 24 September 2026 | EU category rate schedule |
| Austria, Belgium, Czech Republic, Greece, Hungary, Netherlands, Poland, Portugal | 9% | No category schedule published | VAT included | 24 September 2026 | EU commission rate policy; VAT |
New-seller rates are separate: 4% for 60 days in Germany, Spain, France, Ireland and Italy, and 2% for 90 days in the other eight EU markets (details).
Each rate above was read on TikTok's own seller documentation on the date shown. The detail, and how each rate is calculated, follows below.
What Fees Does TikTok Shop Charge?
TikTok Shop sellers face five main types of costs:
- Referral fee (commission) — charged on every order, varies by region
- Payment processing — no separate charge listed in TikTok's US or UK fee policy
- Refund administration fee (US) — charged when you process a refund; TikTok's UK policy refunds the commission instead
- FBT fulfilment fees — if you use Fulfilled by TikTok
- Advertising costs — if you run TikTok Ads or Spark Ads
Let's break down each one.
How Much Does TikTok Shop Take Per Sale?
The headline referral fee is 9% in the UK and 6% in the US. But that number alone is misleading, because the referral fee is rarely the only thing coming out of an order.
Here is what a single order actually gives up, using the rates detailed later in this guide:
| Cost | UK | US | Applies to |
|---|---|---|---|
| Referral fee | 9% | 6% | Every order |
| Affiliate commission | 5–25% | 5–25% | Affiliate-driven orders only |
| FBT fulfilment | Not published on the UK pages we checked | $0.99–$8.99 (standard size) | Per unit, if you use FBT |
| Refund admin fee | None listed; commission refunded | 20% of referral fee | Returned orders only |
| Ad spend | 15–30% of revenue | 15–30% of revenue | If you advertise |
The rates above cover the US and UK. One caveat: the published FBT figures are US rates, with UK fulfilment quoted separately in Seller Centre. Selling in Europe? EU commission rates by country match the UK at 9% — but the reduced rate on electronics and selected beauty subcategories does not: 5% in the UK, 7% in the five EU markets TikTok's category schedule covers.
How much does TikTok Shop take from sellers on a standard order?
If you fulfil orders yourself, sell organically, and take no returns, your TikTok commission comes down to the referral fee: 9% in the UK, 6% in the US, before any of the other lines in this guide. This is the best case, and it is genuinely competitive — Amazon's US referral fee is 8–15% in most categories.
How much does it cost to sell on TikTok Shop in practice?
Very few orders are the best case. Most sales on TikTok Shop are creator-driven, which adds an affiliate commission on top of the referral fee:
| Line | UK order |
|---|---|
| Order value | £25.00 |
| Referral fee (9%) | −£2.25 |
| Affiliate commission (12%) | −£3.00 |
| Left before fulfilment, COGS and ads | £19.75 |
That is 21% of the order value gone before you have paid for the product, the shipping, or the advertising that sold it. The 9% headline was accurate — and it described less than half the real cost.
The 12% commission above is illustrative, and the example assumes free shipping to the buyer: in the UK, buyer-paid shipping is commissioned too (how it's calculated). Creator rates on TikTok Shop typically run between 5% and 25%, and you set them yourself.
So what is the honest answer?
Between 9% (6% in the US) and 40%+ of the order value, depending on how the sale happened. Organic, self-fulfilled orders sit at the bottom of that range. Creator-driven, FBT-fulfilled, ad-supported orders sit at the top.
This spread is precisely why a fee table cannot tell you whether you are profitable. Our free TikTok Shop profit calculator lets you set each of these lines to your own numbers.
Referral Fee (Commission)
The referral fee is TikTok's main revenue from sellers. It's a percentage of each order, calculated on a base TikTok defines per market (see How It's Calculated below), and deducted automatically before your payout.
UK Rates
UK sellers pay a 9% referral fee across most categories. That is higher than the US rate. Whether it is genuinely all-in is a separate question — see the payment processing section for what the policy does and does not say.
Products in specified Electronics and Beauty & Personal Care categories may pay an effective rate of 5%. TikTok's UK commission rate policy sets this out, and its UK commission overview confirms the 9% is quoted "inclusive of applicable taxes, including but not limited to Value Added Tax (VAT)" (both last updated 18 September 2025, checked 25 September 2026).
Two conditions are worth knowing before you price on 5%. TikTok also lists an initial new-seller reduced commission period, with its rates in a downloadable category spreadsheet rather than on the page (checked 25 September 2026), so check how it interacts with the 5% before pricing on it. And the list of eligible Beauty subcategories sits in a downloadable category spreadsheet rather than on the page itself, so check your own products against it. In the five EU markets covered by TikTok's category schedule, the equivalent reduction covers devices only, not cosmetics; the UK wording is narrower than the category name suggests too, without spelling out where the line falls.
US Rates (2026)
| Category | Referral Fee |
|---|---|
| Most categories | 6% |
| Five jewellery sub-categories: diamond, gold, jade, platinum/carat gold, ruby/sapphire/emerald | 5% |
| Pre-owned bags, watches, footwear and fashion | 5%, and 3% on the part of an order above $10,000 |
Rates from TikTok's US referral fees by category (last updated 14 May 2026, checked 25 September 2026); the 6% has applied since 1 April 2024 (US referral fee policy). We found no current TikTok page setting a US new-seller referral rate (an earlier promotion page no longer opens, checked 25 September 2026), so we list none; confirm any offer in Seller Centre before pricing on it.
Sales tax on the fee: West Virginia and Texas only. Since 1 November 2025, TikTok adds sales tax to the referral fee for sellers whose business registration address is in West Virginia or Texas (TikTok's notice, checked 25 September 2026). Sellers registered in other states pay the referral fee without it.
Payment processing. TikTok's US referral fee pages describe a single referral fee and list no separate payment processing charge (checked 25 September 2026). Many guides and calculators still add 2.9% + $0.30 on top; nothing in the two US fee pages we checked supports that.
How It's Calculated
The two markets apply the rate to different bases, and TikTok publishes both formulas.
US — from TikTok's US referral fee policy:
Referral Fee = Rate × (Customer Payment + Platform Discount − Tax)
A platform-funded discount does not reduce the fee: you pay on the full price. Tax is excluded.
Example: A $25.00 product with $2.00 tax → referral fee is calculated on $25.00 → $1.50 (at 6%).
UK — from TikTok's UK commission rate policy:
Commission = Rate × ((Net Sales + Customer-paid Shipping Fee + Platform Discount) − (Net Sales Refund + Platform Discount Refund))
Two differences matter. The UK formula names shipping paid by the buyer as part of the base; the US formula does not list shipping separately, and TikTok's US page does not say whether Customer Payment includes it. And refunds are netted inside the UK formula itself.
Example: A £25.00 product with £3.00 of buyer-paid shipping → commission is calculated on £28.00 → £2.52 (at 9%), not £2.25.
Both formulas checked on 25 September 2026.
Use our profit calculator to see exactly how the referral fee impacts your margin at different price points.
TikTok Shop Fees in the EU (2026): Rates by Country
TikTok Shop's commission policy covers 13 EU countries, and the standard commission is 9% in all of them — identical to the UK. The reduced rate is not: 7% in the EU against 5% in the UK, and TikTok's category schedule publishes it for only five of the 13 markets.
| Country | Standard commission | Reduced rate | VAT | In force since |
|---|---|---|---|---|
| Italy | 9% | 7% | Included | 8 January 2026 |
| Spain | 9% | 7% | Included | 8 January 2026 |
| France | 9% | 7% | Included | 8 January 2026 |
| Germany | 9% | 7% | Included | 8 January 2026 |
| Ireland | 9% | 7% | Included | 8 January 2026 |
| Austria, Belgium, Czech Republic, Greece, Hungary, Netherlands, Poland, Portugal | 9% | Not in the schedule | Included | Not stated |
Verified on 24 September 2026 against TikTok's own seller documentation. The commission rate policy for Italy (last updated 12 June 2026) sets the EU commission at 9% and names all 13 markets in its new-seller terms; TikTok's commission fee page (last updated 9 June 2026) lists the same 13 countries. The category rate schedule for France (last updated 16 September 2026) states its own scope as Germany, Spain, France, Ireland and Italy; the Spanish edition carries the same schedule. For the other eight markets we found no published reduced-rate list (checked 24 September 2026): if you sell electronics there, confirm the rate on your first settlement statement before pricing on 7%. As in the UK, the rate is quoted inclusive of VAT: a VAT-registered seller recovers that element as input VAT, putting the real cost below 9% net — about 7.5% where standard VAT is 20% — while an unregistered seller carries the full 9%.
TikTok Shop Fees in Italy (2026)
Italian sellers pay a 9% commission, VAT included, with a 7% reduced rate on electronics, including electronic beauty devices. Italy's own commission policy is also the page that sets the new-seller rates for all 13 EU markets (verified 24 September 2026).
TikTok Shop Fees in France (2026)
French sellers pay a 9% commission, VAT included, with a 7% reduced rate on electronics, including electronic beauty devices. France's own category rate schedule is the reference document setting this rate for the five markets it names (verified 24 September 2026).
TikTok Shop Fees in Germany (2026)
German sellers pay the EU-wide 9% commission, VAT included, with a 7% reduced rate on electronics, including electronic beauty devices, in force since 8 January 2026 (verified 24 September 2026).
TikTok Shop Fees in Spain (2026)
Spanish sellers pay the EU-wide 9% commission, VAT included, with a 7% reduced rate on electronics, including electronic beauty devices; the Spanish seller documentation carries the same schedule (verified 24 September 2026).
TikTok Shop Fees in Ireland (2026)
Irish sellers pay the EU-wide 9% commission, VAT included, with a 7% reduced rate on electronics, including electronic beauty devices, in force since 8 January 2026 (verified 24 September 2026).
New-Seller Rates in the EU
Since 15 June 2026, a seller opening their first TikTok Shop store in the EU can cut the commission for a limited period after completing an onboarding mission: 4% for 60 calendar days in France, Germany, Spain, Italy and Ireland, and 2% for 90 calendar days in the other eight markets. TikTok's conditions include shipping locally within the EU, a product range substantially different from any existing store, and uploading five in-stock products within 15 days of accepting the mission (commission rate policy for Italy, last updated 12 June 2026, verified 24 September 2026).
The 7% Reduced Rate Is Narrower Than It Sounds
Note first that this is an EU figure. The UK reduction lands at 5%, not 7% — same idea, different number, and the two are easy to mix up because the standard rate is 9% on both sides of the Channel.
In the five markets TikTok's category schedule covers (Germany, Spain, France, Ireland and Italy), the reduced rate applies to all Household Appliances, selected subcategories of Phones & Electronics and Computers & Office Equipment, car electronics, pre-owned mobile phones, smart watches and tablets and, within Beauty & Personal Care, devices only — hair dryers, electric shavers, electric toothbrushes, body beauty devices, refurbished haircare devices (category rate schedule, last updated 16 September 2026).
Cosmetics, skincare and fragrance stay at 9%. This matters more than it looks: beauty is a core category for many TikTok Shop sellers, and a seller who reads "Beauty & Personal Care: 7%" will budget a rate that does not apply to what they actually sell. If your catalogue is creams rather than appliances, model 9%.
Payment Processing Fee
This is where most confusion happens.
US: One Referral Fee, No Separate Processing Line
If you sell on TikTok Shop in the United States, TikTok's fee documentation lists one referral fee and no separate payment processing charge (checked 25 September 2026). Read literally, you pay 6% — not 6% + 2.9% + $0.30. Your settlement statement is the check: look for a single platform deduction line per order.
If your settlement confirms a single deduction, that compares well with Shopify, where card processing is charged on top of the plan fee.
UK: 9%, and One Thing the Policy Does Not Say
UK sellers pay a 9% referral fee, charged on the item price plus any buyer-paid shipping and platform discount, against 6% for a US seller.
Whether payment processing sits inside that 9% is less settled than most guides imply, including ours until now. TikTok's UK commission policy states the rate, the VAT treatment and the calculation formula — and says nothing about payment processing. Not that it is included, not that it is charged on top. Meanwhile the TikTok Shop Partner API carries a transaction_fee_amount field that is distinct from the commission field, and is populated in some markets.
Neither of TikTok's two UK commission pages states that a separate processing charge applies, or that it does not. Checked 25 September 2026 against TikTok's own UK commission policy. If you are reconciling to the penny, look for a second deduction line in your settlement rather than assuming one figure covers everything.
The detail most fee tables skip: the UK 9% is quoted VAT-inclusive. If you are VAT-registered, the VAT element is recoverable as input VAT, which puts your real commission cost at 7.5% net. TikTok typically invoices UK sellers from a UK entity, so this is standard deductible input VAT rather than a reverse-charge entry. Confirm the treatment with your accountant — but if you have been modelling 9% as a hard cost, your margins are better than your spreadsheet says.
EU: Why Sources Disagree, and How to Settle It
If you searched for a TikTok Shop payment processing fee in Italy, France or Germany and found two contradictory answers, you were not reading carelessly. The sources genuinely disagree. Here is the state of the evidence, and how to resolve it for your own account.
What TikTok's documentation says. The EU commission fee is 9%, "including applicable taxes, including but not limited to value added tax". It describes a single commission fee. It does not mention a separate payment processing or transaction charge anywhere in the policy (checked 24 September 2026).
What some third-party guides say. A number of fee calculators and seller guides list an additional transaction charge of roughly 2% on EU marketplaces, on top of the commission. Others still quote 6% for the EU; TikTok's schedule has set 9% since 8 January 2026 in the five markets it covers, so that figure is out of date.
Why the disagreement is hard to dismiss. Stale figures are easy to discard. Harder are the sources that get the current 9% and the 7% electronics rate right, and still list a separate 2% charge: being verifiably correct on two points earns some credit on a third. Press coverage of the January change also described it as an alignment with the UK structure, which would imply all-in — but that is an inference about the policy, not a reading of it.
Where that leaves us: the official documentation describes a single commission fee and mentions no separate charge anywhere. We are not going to promote that silence into a guarantee.
How to settle it in five minutes. Seller Centre → Finance → Statements. Export one settlement as a spreadsheet and read the deduction columns.
- If the only platform deduction is roughly 9% of order value, your rate is all-in.
- If a second line of around 2% sits beside the commission, your real platform cost is nearer 11% — and every margin you have calculated is two points optimistic.
Your settlement export outranks every other source here, including TikTok's help pages and this article. It reports what was actually taken from your money, for your account, in your market.
TikTok Shop Fees for Sellers: The Full List
Every TikTok seller fee in one table, with what triggers it. Use this as the reference; the sections below explain each line in detail.
| Fee | UK rate | US rate | When it applies | Avoidable? |
|---|---|---|---|---|
| Referral fee | 9% (5% specified electronics & beauty) | 6% (5% on five jewellery sub-categories) | Every order | No |
| New seller promotion | Reduced rates listed in TikTok's downloadable UK category spreadsheet | No current official page found (checked 25 September 2026) | First selling window | — |
| Payment processing | No separate charge listed | No separate charge listed | — | N/A |
| Affiliate commission | 5–25%, you set it | 5–25%, you set it | Creator-driven orders | Yes — sell organically |
| Refund admin fee | None listed; full commission refunded on a fully returned order | 20% of referral fee, capped $5/SKU | Returned orders | Partly — reduce returns |
| FBT fulfilment | Not published on the UK pages we checked (27 September 2026) | $0.99–$8.99/unit (standard size) | If you opt into FBT | Yes — self-fulfil |
| FBT storage | Not published on the UK pages we checked | Free for 60 days, then charged daily per cubic foot | Inventory held in FBT | Yes |
| Hub placement | Not published on the UK pages we checked | Varies by hub and weight; none if you ship direct to a fulfilment centre | Inventory sent via a hub | Yes |
| Advertising | Your budget | Campaign budget must exceed $50/day | Only if you advertise | Yes |
| Monthly platform fee | None | None | — | N/A |
Three things worth noting. There is no monthly subscription on TikTok Shop, unlike Shopify or Amazon Professional — your cost is purely transactional. Five of the ten lines are avoidable, and a sixth partly: the only fee you cannot avoid is the referral fee itself. And refunds work differently on each side of the Atlantic: the US keeps part of the referral fee on a return, while TikTok's UK policy refunds it.
The "Avoidable?" column is our editorial assessment of which TikTok seller fees you can structurally opt out of, not a TikTok classification.
Refund Administration Fee
In the US, when a customer returns a product and you process a refund, TikTok charges a refund administration fee of 20% of the original referral fee (US referral fee policy, checked 27 September 2026). This is one of the most overlooked costs on TikTok Shop.
How It Works
- You sell a product for $50 (US)
- TikTok charges a $3.00 referral fee (6%)
- The customer requests a refund
- You refund the $50, but TikTok keeps $0.60 (20% of the $3.00 referral fee)
The refund admin fee is capped at $5 per SKU (since May 2025), which protects sellers on high-ticket items. But on low-ticket, high-return-rate products, this fee adds up fast.
Example: If you sell 1,000 units at $15 with a 10% return rate, you're paying roughly $18 in refund admin fees per month on top of your other costs. Not catastrophic — but it's money most sellers don't even know they're losing.
Track your refund rate closely. If it's above 5%, the refund admin fees are quietly eating into your margin.
Returns in the UK
TikTok's UK policy handles returns differently. If the entire order is returned, the full commission is refunded to the seller; if part of an order is refunded, the commission on the refunded items is refunded (UK Platform Commission Fee, last updated 15 September 2025, checked 27 September 2026). The UK pages we checked do not mention a refund administration fee.
That does not make UK returns cheap. The commission comes back, but the product cost and the shipping do not, so model your margin at your actual return rate, not at zero.
In the US, the admin fee is one of three costs a return creates, alongside lost COGS and return shipping. For return rates by category and the full per-return cost, see our TikTok Shop refund rate guide.
Fulfilled by TikTok (FBT) Fees
FBT is TikTok's fulfilment service, similar to Amazon FBA. You ship inventory to TikTok's warehouses, and they handle picking, packing, and shipping to customers.
All figures below are US rates from TikTok's FBT rate card (last updated 13 July 2026, checked 27 September 2026). We found no published UK FBT rate card (checked 27 September 2026).
Fulfilment Fees (Per Unit Shipped)
For standard-size items (4 oz to 50 lb), the single-unit fulfilment fee runs from $0.99 for the lightest tier to $8.99 for the heaviest, and oversize items (51–150 lb) have their own tiers. Multi-unit orders of 0–4 lb pay up to 24% less per unit on affected tiers since 12 January 2026.
Storage Fees
The first 60 days of storage are free. After that, storage is charged daily per cubic foot at the rates on the rate card — a strong incentive to keep your sell-through rate high.
Hub Placement Fee
If you send inventory through a TikTok hub rather than directly to a fulfilment centre, a hub placement fee applies per unit, varying by hub and item weight. Shipping direct to a fulfilment centre carries no placement fee.
Should You Use FBT?
FBT makes sense if:
- Your products are small and lightweight (lower per-unit fees)
- You have consistent, predictable sales (no storage fee surprises)
- You want the "Shipped by TikTok" badge (can improve conversion)
It doesn't make sense if:
- Your products are oversized or heavy
- Your sales are seasonal or unpredictable
- Your margins are already tight
Factor FBT costs into your profit calculations before committing.
What TikTok Deducts Before Your Payout
Fees are not invoiced to you — they are withheld before TikTok releases funds. Your payout is never the order total, which is why the fee table and your bank statement rarely reconcile in an obvious way.
| Deduction | Amount | Notes |
|---|---|---|
| Referral fee | 9% UK / 6% US | No separate payment processing charge listed in either market |
| Affiliate commission | 5–25% | Creator-driven orders only |
| Shipping subsidy recovery | Varies | If TikTok subsidised the shipping |
| Refund admin fee | 20% of referral fee (US) | Returned orders only; UK policy refunds the commission |
| Reserve hold | Varies | Only if TikTok places your account on a settlement reserve |
Worked example — a £25 product sold on TikTok Shop UK with free shipping to the buyer and a 10% creator commission:
| Line | Amount |
|---|---|
| Order value | £25.00 |
| Referral fee (9%) | −£2.25 |
| Affiliate commission (10%) | −£2.50 |
| Settlement payout | £20.25 |
You sold for £25 and you receive £20.25 — and that is still before your own cost of goods. On a £7.50 landed cost, your net profit is £12.75.
The same $25 order in the US, with the same 10% creator commission, settles at $21.00 — 3% of the order value more, purely because of the 6% versus 9% referral gap.
Two things here are not fees. A reserve hold, if your account has one, is your own money released later. And in the UK, the payout itself lands between 1 and 31 days after delivery, depending on your settlement tier (Payment Settlement Period, last updated 15 July 2026, checked 27 September 2026). Both distort your cash position without costing you anything. See our TikTok Shop settlement guide for how the timing works.
To calculate your true landed cost per unit before any of this, see our TikTok Shop COGS guide.
Advertising Costs
TikTok Ads aren't technically a "fee" — they're an investment. But they're a real cost that directly impacts your profit margin.
Minimum Budgets
| Level | Minimum Daily Budget |
|---|---|
| Campaign level | Must exceed $50/day |
| Ad group level | Must exceed $20/day |
From TikTok's Ads Manager budget help page, checked 27 September 2026.
Real Impact on Margins
Most TikTok Shop sellers spend between 15–30% of their revenue on ads. At the low end, this is manageable. At the high end, it can wipe out your profit entirely.
The key metric isn't ROAS (Return on Ad Spend) calculated on revenue — it's ROAS calculated on profit. A 3x ROAS on revenue might be a 0.8x ROAS on profit once you factor in all other fees.
To track this accurately, you need to know your true per-order profit after all fees. That's where a tool like Margn helps — it connects to your TikTok Shop and calculates real profit per product, automatically.
How Do TikTok Shop Fees Compare?
Here's how TikTok Shop stacks up against other major e-commerce platforms:
| Fee Type | TikTok Shop (US) | Amazon (US, Professional plan) |
|---|---|---|
| Monthly fee | None | $39.99/mo |
| Commission | 6% | 8–15% in most categories |
| Payment processing | None listed | Not covered here |
Amazon figures from its US selling fees page, checked 27 September 2026. For a UK comparison, Shopify's Basic plan costs £25 a month billed monthly, with a 2% + 25p online card rate (Shopify UK pricing, checked 27 September 2026).
TikTok Shop's single referral fee is competitive — especially since it includes built-in traffic from the TikTok algorithm, which is the one cost Shopify never shows you. A Shopify store still has to buy every visitor.
To see how these fees translate into real margins by product category, check our profit margin benchmarks.
How to Calculate Your Real Profit After Fees
Knowing the fee structure is step one. Step two is calculating what you actually keep.
The formula:
Net Profit = Revenue − COGS − Referral Fee − Ad Spend − Commissions − Refunds
Your COGS is often the biggest variable in this equation — and most sellers underestimate it. For a complete guide on calculating your real landed cost per unit, see our TikTok Shop COGS guide.
Once you know your fees and COGS, you need a pricing strategy that accounts for both. Our TikTok Shop pricing strategy guide shows the backward formula to set the minimum price you can charge while staying profitable in both UK and US markets.
For a step-by-step walkthrough with examples, read our guide on how to calculate your true TikTok Shop profit.
Or skip the maths and use our free TikTok Shop profit calculator — enter your revenue, COGS, and ad spend, and see your real margin instantly.
Want It Calculated Automatically?
If you're tired of estimating, Margn connects directly to your TikTok Shop and pulls your real fees, commissions, and refunds from every order. No spreadsheets, no guessing.
- Free plan: 500 orders/month, hourly sync
- Pro plan (€19/mo): Unlimited orders, 15-min sync, ad spend tracking, CSV export
Not sure which tracking tool fits your business? Compare the best TikTok Shop profit trackers.
Ready to see your real numbers? Get started free — no credit card required.
