TikTok Shop is one of the fastest-growing online marketplaces, giving creators and entrepreneurs access to billions of engaged users looking for their next purchase. But before you start selling, you’ll need a firm grasp on how TikTok Shop fees work.
This guide explains what percentage TikTok Shop takes from your sales, including transaction and referral fees. We’ll also explore how Print on Demand (POD) can help you achieve eCommerce success with minimal effort or upfront costs.
Key takeaways
- TikTok takes a percentage of each sale. Most products have a 6% referral fee, while some jewelry items have a 5% fee.
- Transaction fees apply when processing earnings. TikTok charges a $0.05 withdrawal fee, and you need at least $2 to cash out.
- Advertising on TikTok Shop requires a minimum budget of at least $50 per day, while ad groups require $20 per day.
- Fulfilled by TikTok (FBT) fees start at $3.58 per item, and free storage is limited to 30 days before fees apply.
- Check the TikTok Shop Seller Center regularly for fee updates and use Printify’s Print on Demand to reduce costs and maximize profits.
Understanding the TikTok Shop fee structure
Selling on TikTok Shop is a great way to make money for small businesses – but like any marketplace, there are fees to consider. Knowing how they work helps you price your products strategically to stay competitive and keep more of your revenue.
Let’s break down the true cost of selling on TikTok Shop.
Marketplace commission fee (referral fees)
The platform takes a small cut from each sale – this is the TikTok Shop commission fee or referral fee.
But how much does TikTok Shop take? In Q1 2025, the fee is 6% per order for most products. If you’re selling certain types of jewelry, the rate is slightly lower at 5%.
Here’s how the commission fee structure works:
- It’s a percentage of your product’s price – This is before sales tax and shipping.
- It depends on what you’re selling – Some product categories have cheaper rates.
Let’s say you sell a Gildan heavy cotton tee for $12 on TikTok Shop. Since clothing falls under the 6% referral fee, here’s how to calculate the cost:
$12 × 6% = $0.72
So, TikTok would take $0.72 from the sale, and you’d keep the rest (before other costs like transaction fees and shipping).
Transaction fee
Every sale you make on TikTok Shop goes through a payment system, which involves transaction fees.
Whether customers use a credit card, debit card, or other methods, here’s how transaction fees work on TikTok Shop:
- The amount depends on the payment method – Based on the bank or card processor, this might be a flat rate or a small percentage of the sale.
- There’s a small withdrawal fee – If you transfer your earnings to your bank, TikTok charges $0.05 per withdrawal, and you need at least $2 to cash out.
Let’s come back to our $12 t-shirt. Here’s what happens after accounting for TikTok’s fees:
– Marketplace commission fee (6%): $0.72
– Transaction fee (bank withdrawal fee): $0.05
– Total fees: $0.72 + $0.05 = $0.77
– Your earnings: $12 – $0.77 = $11.23
Advertising fees
If you want to run ads on TikTok Shop, there are two minimum budget requirements to keep in mind. These limits keep your ads running smoothly without interruption.
Campaign-level budget (for the whole campaign)
Think of this as the big-picture budget for your entire ad campaign. If you’re running multiple ads under one campaign, this covers all of them.
- Daily budget: At least $50 per day
- Lifetime budget: At least $50 total for the entire campaign
Ad group-level budget (for specific ads in a campaign)
This is the budget for a smaller group of ads inside your campaign. Each ad group has its own budget and can target different audiences or promote different products.
- Daily budget: At least $20 per day
- Lifetime budget: At least $20 per day × the number of days the ad runs
Let’s say you create an ad group that runs for 10 days:
– Daily budget: $20 per day
– Lifetime budget: $200 total ($20 × 10 days)
Fulfilled by TikTok (FBT) fees
TikTok Shop has a Fulfilled by TikTok (FBT) program. This service lets the marketplace handle your product storage and shipping options, easing your selling journey.
Here’s a simple breakdown of FBT fees (from January 16, 2025):
1. Co-Funded Free Shipping (CFFS) program: TikTok offers a $0.75 per item shipping subsidy to help reduce your shipping spending.
2. Updated fulfillment fees
- Single-unit orders: Fees start at $3.58 per item.
- Multi-unit orders: Fees start at $2.86 per item.
3. Optional hub placement fees: Starting at $0.31 per unit, these fees apply if you use TikTok’s hubs for inventory distribution.
4. Storage fees
From March 5, 2025, the free storage period is reduced to 30 days. Here are the per cubic foot costs for storage after you surpass the limit:
- Days 31 to 90: $0.02 per day.
- Days 91 to 180: $0.06 per day.
- Days 181 to 365: $0.12 per day.
Here’s how the FBT fees would apply to our $12 t-shirt:
Fulfillment fee: For a single t-shirt order, you’d pay $3.58.
Storage fee: If the t-shirt remains in storage beyond 30 days and occupies 0.5 cubic feet:
– Days 31 to 90: $0.01 per day (0.5 cubic feet × $0.02).
– Days 91 to 180: $0.03 per day (0.5 cubic feet × $0.06).
Returns and refunds
Handling returns and refunds is part of selling online, and TikTok Shop applies a Refund Administration Fee.
- The rate is 20% of the original referral fee, which helps cover processing costs.
Using the $12 t-shirt example, here’s how the refund fee would apply:
– Product price: $12
– Referral fee (6%): $0.72
– Refund Administration Fee (20% of the referral fee): $0.14
– Total refund fee: $0.14
TikTok Shop fees cheat sheet
Here’s a quick breakdown of how fees apply when selling a premium Adidas Unisex Fleece Hoodie for $50 on TikTok Shop:
| Fee type | Calculation | Amount | Earnings left |
|---|---|---|---|
| Sale price | – | $50.00 | $50.00 |
| Referral fee (6%) | $50 × 6% | -$3.00 | $47.00 |
| Withdrawal fee | Flat rate | -$0.05 | $46.95 |
| FBT fulfillment fee (if using FBT) | Flat rate | -$3.58 | $43.37 |
| FBT storage fee (if stored for 60 days) | 0.75 cu ft × $0.02 (days 31-60) | -$0.45 | $42.92 |
So, if you sell a hoodie for $50 and apply all fees, you will earn $42.92 after withdrawal.
If you run ads, remember:
- A campaign-level ad requires at least $50 per day.
- An ad group-level ad needs at least $20 per day.
How to handle TikTok Shop’s fee changes like a pro
TikTok Shop’s fees aren’t set in stone, and staying on top of updates is key to keeping your store profitable.
The best way to avoid unexpected costs is to monitor TikTok’s official announcements and keep up with reliable sources.
- Check the TikTok Newsroom and TikTok Shop Seller Center regularly for updates on additional fees and policy changes.
- Join seller communities where experienced merchants share insights. Threads like Reddit’s TikTok Shop Sellers Club can give you valuable information on changes, pricing strategies, and workarounds for selling on TikTok.
- See what’s new on Printify Blog to get the latest scoop on everything TikTok, from marketing tips and strategies to trending product guides.
Sell on TikTok with Printify
Whether you’re just getting started or already running a TikTok Shop, selling custom merch with Print on Demand is a hassle-free way to grow your business.
Printify makes it easy to create and sell custom products with no upfront costs, inventory, or fulfillment issues. It’s perfect for new merchants, creators, artists, and entrepreneurs looking for an effective way to monetize their audience on TikTok.
Ready to launch? Follow these simple steps.
1. Sign up
Create a free Printify account.
3. Customize your designs
Upload your artwork using our Product Creator, customize your items, and preview high-quality mockups before listing them on your TikTok Shop.
4. Connect Printify to TikTok
Sync your products by integrating Printify with TikTok Shop, making listing and order management seamless.
5. Start selling – we handle the rest
When a customer orders, our global network of Print Providers prints, packs, and ships products directly to your customers – so you can focus on maximizing TikTok sales.
Want to maximize your income streams? Learn the different strategies to make money on TikTok.
FAQ
Signing up for TikTok Shop is free, but there are fees when you start selling. TikTok takes a commission on each sale, and transaction fees apply for payment processing. You might also have to cover shipping costs, but this can vary depending on your fulfillment strategy.
TikTok Shop lets you sell products directly on the app, so buyers don’t have to leave TikTok to make a purchase. Once you receive customer orders, TikTok collects the payments and takes out fees before depositing the rest into your account.
It depends. If you handle shipping yourself, you’ll pay the shipping costs based on the carrier’s rates. TikTok also offers fulfillment programs like FBT, which may help reduce shipping fees through the Co-Funded Free Shipping (CFFS) program.
Buyers may cover delivery costs at checkout depending on your product, seller settings, and shipping strategy.
The best way to stay on top of TikTok seller fees is to monitor updates on Seller Center and adjust your pricing strategy accordingly. Factor in transaction fees, commission rates, and shipping costs.
TikTok’s free marketing tools, like organic content and live selling, can help you improve sales without spending extra on ads. Also, look into Printify’s TikTok integration to ease your eCommerce journey and cut down on upfront costs.
Wrapping up
Selling on TikTok Shop is a great way to turn your content into cash, but it’s important to understand the platform’s cost structure and fees so you can keep more of what you earn.
From commission fees to transaction costs and shipping expenses, knowing what to expect helps you price your products competitively and stay profitable.
Make TikTok Shop work in your favor by implementing smart strategies. Keep up with fee updates, adjust your pricing, and leverage organic marketing to grow your business.
And if you want an easy way to sell custom products without dealing with inventory or upfront costs, Printify’s got your back!
Make it happen!
Ready to start selling? Sign up with Printify and get your TikTok Shop up and running today!
