October 24, 2023
4 min

Understanding TikTok Shop Fees - Your Smart Start to Selling

Curious about TikTok shop fees? Our comprehensive guide helps you navigate costs and kickstart your eCommerce journey.
Understanding TikTok Shop Fees - Your Smart Start to Selling
Table of contents

Navigating TikTok Shop is not only an exciting endeavour but also a promising one. However, understanding your TikTok Shop fees is critical to leveraging this bustling marketplace. 

In this article, we’ll dive into the financial intricacies of TikTok Shop, providing valuable insights into the costs and opportunities within the platform.

Let’s get started!

Key Takeaways from this Post

While setting up a TikTok Shop seller account is free, sellers are charged commission fees per transaction based on a percentage of the total sale price. In both the UK and US, the platform starts with a commission rate of 1.8% for the first 90 days, after which it rises to 5%.
Shipping fees on TikTok Shop are calculated based on factors like package size, weight, and destination.
The revenue one can generate on TikTok Shop depends on various elements, including product demand, marketing, and strategy. Tools like Link My Books can connect TikTok Shop to accounting platforms like Xero or QuickBooks for smooth financial tracking.
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Is it Worth Selling on TikTok?

TikTok has transformed the e-commerce landscape with TikTok Shop, empowering businesses to showcase and sell their products seamlessly within the app. The platform offers various features, including live-stream shopping events and personalised in-app shops. It is a go-to choice for brands seeking high engagement, exceptional conversion, and increased brand recall. So, yes, it's worth selling on TikTok Shop.

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Is TikTok Shop Free?

Registering for a TikTok Shop seller account is free, but it's crucial to understand that commission fees are part of each transaction, and the seller covers these fees. They are calculated as a percentage of the total sale price, playing a role in maintaining the smooth operation of the marketplace.

How Much Percentage Does TikTok Take?

Commission fees allow sellers to leverage TikTok’s engaged user base. Remember to include these charges in pricing and profit calculations.

TikTok Shop Fees UK Explained

The fee structure in the UK starts with an initial rate of 1.8% for the first 90 days, making it an ideal choice for newcomers. After this introductory period, the fees rise to 5%, which remains competitive compared to other e-commerce platforms.

TikTok Shop Fees US Explained

TikTok Shop offers a fee structure similar to the UK's in the United States. With an initial rate of 1.8% for the first 90 days, it's a favourable option for newcomers. Post-introductory period, fees in the US also increase to 5%.

| **TikTok Shop Fees** | **Initial Rate** | **Introductory Period** | **Standard Rate** | |:---:|:---:|:---:|:---:| | UK | 1.8% | First 90 days | 5% | | US | 1.8% | First 90 days | 5% |

What is the TikTok Shop Shipping Fee?

Shipping fees ensure smooth order delivery. The exact amount may vary based on package size, weight, and destination, and it's typically added to the total purchase amount at checkout.

Shipping Fees in the US

During checkout, TikTok Shipping calculates the shipping fee for buyers in the United States based on the lowest possible rate available to sellers. The actual shipping fee is accurately calculated after package collection. 

The difference between the carrier's shipping fee and the buyer's shipping fee is called the Seller Shipping Fee, which TikTok covers if the buyer has a shipping coupon. 

TikTok Shop provides a table for base rates for UPS, USPS, USPS Priority Mail, and FedEx, which you can access at the Seller Center.

Starting September 17th, 2023, the buyer's shipping fee is based on what the seller pays, with some exceptions when using expensive carriers or services.

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Shipping Fees in the UK

The UK experiences similar shipping fee arrangements, with costs calculated at checkout based on product weight and delivery location. Various shipping options are available without restrictions, and the final price is confirmed after package collection.

Can You Use PayPal on TikTok Shop?

Yes, PayPal is a trusted and secure payment method supported by TikTok Shop, offering users a seamless transaction experience, whether buying or selling.

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How Much Can You Make From TikTok Shop?

The potential for earnings on TikTok Shop depends on various factors, including product demand, pricing, marketing strategies, and audience appeal. 

Here’s an actual result from TikTok’s seller success feature:

Maryam, in collaboration with her TikTok Shop Creator Manager, implemented a successful strategy, focusing on Short Videos and obtaining product samples for her exclusive line with The Beauty Crop.

The collaboration resulted in a staggering +185k month-over-month revenue growth achieved within six months, from April to November 2022.

Commissions, transaction fees, and marketing efforts all affect your overall earnings. Effective advertising, influencer collaborations, and strategic promotional tools can elevate your income as a seller.


TikTok Shop is a dynamic and promising platform for buyers and sellers alike. While it offers enticing opportunities, it's crucial to comprehend the associated costs and fees. By doing so, you can harness the full potential of TikTok Shop and navigate this thriving marketplace with confidence.

Link My Books is a tool that connects your TikTok Shop directly to your Xero or QuickBooks account. Seamlessly, it tracks every TikTok sale, refund, fee, and tax, providing detailed insights by dissecting each payout. Link My Books then simplifies your data into a concise invoice, ready to integrate with your accounting platform.

With Link My Books, you can effortlessly maintain precise records of your TikTok transactions, granting you valuable time to concentrate on expanding your business. Take charge of your finances today with a risk-free 14-day trial of Link My Books!

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