TikTok Shop Earnings Calculator

Seller: $30 product, $8 COGS, $4 shipping, 100 units/mo Platform fee (8%): $2.40 Payment (2.9%): $0.87 Net/unit: $30 − $8 − $4 − $3.27 = $14.73 Monthly profit: $1,473

TikTok Shop profitability is the measure of a seller's or affiliate's net income after all expenses are accounted for when operating on the TikTok platform. For sellers, this involves subtracting the cost of goods sold (COGS), shipping expenses, TikTok's platform fee, and payment processing fees from the product's selling price.\n\nSince 2024, TikTok's platform fee has increased to approximately 8%, a significant factor in a seller's margin. Additionally, payment processing typically incurs a charge around 2.9%. Affiliates, on the other hand, earn a commission, usually ranging from 5% to 20%, on each sale they facilitate. While this is revenue for the affiliate, it represents an additional cost for the seller.\n\nUnderstanding these various deductions is crucial for setting competitive prices and ensuring a sustainable business model. Factors like shipping subsidies offered by TikTok can also impact the overall cost structure, potentially reducing the seller's burden. Accurate calculation of these elements allows businesses to forecast earnings, optimize pricing strategies, and make informed decisions about their presence on TikTok Shop.