- How TikTok Shop's referral fee works
- TikTok Shop's new seller rate
- Affiliate commission: the cost many sellers forget
- What TikTok Shop keeps when an order is refunded
- When TikTok Shop pays sellers
- What decides how much TikTok Shop takes
- TikTok Shop fee table
- Ways TikTok Shop sellers keep more of each sale
- Frequently asked questions
In the US, TikTok Shop takes a referral fee of 6% per order for most categories, with some categories at 5%, according to its Seller University. The fee is worked out on what the buyer pays plus platform discounts, minus tax, and excludes shipping. Any affiliate commission you offer creators is paid on top.
TikTok Shop turned the For You feed into a shop window, and for a lot of small brands it's now the quickest way to put a product in front of people who've never heard of them. Before you list, it helps to know exactly what TikTok keeps from each order, because the referral fee is only part of the story. The figures below are for US sellers, taken from TikTok Shop's own Seller University pages.
How TikTok Shop's referral fee works
The referral fee is TikTok Shop's main cut. TikTok's fee update article says that from April 1, 2024, the referral fee on all qualified transactions rose to 6% per order, and its fee table lists rates of 5% to 6% depending on the category.
What the 6% is charged on matters. TikTok defines the base as what the buyer paid, plus any platform discount TikTok funded, minus tax. Shipping fees and tax aren't included. So if TikTok runs a discount that lowers the buyer's price, your referral fee is still worked out as if the buyer paid the full amount before that platform discount.
TikTok Shop's new seller rate
New shops can pay less for a while. TikTok Shop's New Seller Referral Fee Promotion says that new US sellers who complete onboarding and make a first sale within 60 days get a discounted referral rate of 3% for 30 days. After that, the normal rate for your category applies.
TikTok's pages don't all describe this promotion in the same way, and some campaign pages mention longer discount windows. Seller Center shows the exact terms for your own shop, so check there before you plan your launch around the lower rate.
Affiliate commission: the cost many sellers forget
A big share of TikTok Shop sales come through creators who feature your product in their videos and lives. You choose the commission rate you'll pay them through the affiliate programme, and TikTok's Seller University explains that this commission is separate from, and on top of, the referral fee.
This is where the real take can grow. If you offer creators a generous rate to get them posting, your total cost per sale is the referral fee plus that commission. Set your affiliate rate with your margin in mind, and remember you can offer different rates on different products. My guide to running TikTok ads for an online shop covers the paid side that many sellers combine with affiliates.
What TikTok Shop keeps when an order is refunded
If an order is refunded, returned or cancelled, TikTok gives back the referral fee but keeps a Refund Administration Fee. TikTok says this is 20% of the referral fee, and from May 15, 2025 it's capped at 5 US dollars per SKU. No refund administration fee is charged on orders auto-cancelled before they ship, or on certain creator sample orders.
When TikTok Shop pays sellers
TikTok Shop's payout clock starts at delivery, not at the order date. Your shop is placed in a settlement tier based on its performance. TikTok's Finance and Settlement pages list tiers that include Introductory at 31 days, Standard at 8 days, Accelerated at 5 days and Express at 1 day after delivery. Better shop performance moves you to faster tiers.
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TikTok also holds part of each delivered order in reserve for 30 days from delivery, with the percentage set by your shop's reserve level. After that, unused reserve is released. Once a payout is sent, TikTok says it typically takes 1-3 business days to reach your bank account.
What decides how much TikTok Shop takes
- Your category. Most pay 6%, and some pay 5%.
- Whether you're new. An eligible new shop can pay 3% for its first 30 days.
- Your affiliate rate. The commission you offer creators is added to TikTok's cut.
- Your refund rate. Each refund costs you the refund administration fee.
- Your shop performance. It doesn't change the fee, but it decides how quickly you're paid.
- Your country. Rates outside the US differ. According to Retail Week, TikTok Shop raised its UK base commission from 5% to 9% in 2024, so UK sellers should read the UK Seller Center fee page.
TikTok Shop fee table
| What | How it works | Source checked |
|---|---|---|
| Referral fee | 6% per order for most US categories, 5% for some | TikTok Shop Seller University |
| Fee base | Buyer paid plus platform discount, minus tax; no shipping | TikTok Shop Seller University |
| New seller rate | 3% for 30 days after an eligible first sale | TikTok Shop new seller promotion |
| Refund administration | 20% of the referral fee, capped at 5 US dollars per SKU | TikTok Shop Seller University |
| Affiliate commission | Set by you, paid on top of the referral fee | TikTok Shop affiliate guide |
| Reserve | Part of each order held for 30 days after delivery | TikTok Shop reserve policy |
Ways TikTok Shop sellers keep more of each sale
- Work out your margin with both the referral fee and your affiliate rate before you set a price.
- Keep refunds low with clear product videos and honest descriptions.
- Ship fast and answer messages quickly, so your shop moves into a faster settlement tier.
- Use the new seller window to test products while the rate is lower.
- Try live selling. My guide to what Whatnot takes from live sellers compares another live-shopping fee model.
You don't need a huge following to make money from TikTok. My breakdown of how to get paid on TikTok without a big following covers the creator side as well as shops.
TikTok Shop's fees change and vary by country and category, so always read the current fee pages in Seller Center for your own shop. TikTok can't advise on tax, and selling income may be taxable where you live, so check with an accountant or your tax office.
Frequently asked questions
What percentage does TikTok Shop take?
In the US, TikTok Shop's referral fee is 6% per order for most categories, with some categories at 5%. Any affiliate commission you offer creators is extra.
Does TikTok Shop take a fee on shipping?
No. TikTok works out the referral fee on what the buyer paid plus platform discounts, minus tax, and shipping fees are excluded.
Do new TikTok Shop sellers pay less?
Eligible new US sellers who make a first sale within 60 days get a 3% referral rate for 30 days, according to TikTok's new seller promotion. Check Seller Center for your terms.
Does TikTok Shop refund fees on returns?
Mostly. TikTok refunds the referral fee but keeps a refund administration fee of 20% of it, capped at 5 US dollars per SKU.
How long does TikTok Shop take to pay?
Payouts are timed from delivery and depend on your settlement tier, from 1 day to 31 days. The money then usually reaches your bank in 1-3 business days.
