TikTok Shop Commission Strategy: Rates & Margin

Start with the expected selling price and subtract product cost, delivery, current platform fees, discounts and your own return allowance. The remaining contribution must cover commission and the business's profit needs. Use the actual fee schedule rather than a universal category rate.

Different products and deliverables can justify different terms. Compare incremental contribution with the audience or content work offered. Higher commission cannot make an unsuitable product clear or relevant to the creator's buyer.

Record when the rate changed and which cohort was affected. Review posts, orders and contribution together. Increased GMV alone does not show that an expensive commission change improved the business.