TikTok Shop Fees Explained: Commission, Shipping, Ads & More

Thinking about selling on TikTok Shop but confused about all the fees? You’re not alone.

Whether it’s commission fee, shipping charges, ad spend, or some hidden platform fee, TikTok Shop can feel like a maze when you’re just starting out.

Maybe you’ve asked yourself:

How much does TikTok Shop Fees?

Do I need to pay for ads to succeed?

How to deal with shipping? Do I handle it, or TikTok?

If those questions sound familiar, you’re in the right place.

In this guide, I’m going to walk you through everything including commission fees, shipping options, ad costs, payment processing and more.

So, let’s decode TikTok Shop’s fee structure together.

Commission Fees: How Much Does TikTok Take?

Before we get into numbers, let’s clear something up:

Commission fees are the percentage TikTok takes each time you make a sale. Consider it as TikTok’s cut for giving you access to its massive audience, tools, and e-commerce platform.

The percentage of commission fees slightly varies in different regions.This article discusses TikTok Shop fees in the UK. And It depends on what you’re selling, how you’re selling, and whether you’re new to the platform.

But let’s break it down so it actually makes sense.

Even though listing your products is free, you only pay TikTok when you make money.

But that cut can eat into your profits fast if you’re not aware of the full structure.

Standard Commission Rate (UK)

By default, TikTok charges UK sellers a 9% commission fee on every completed order. This fee is calculated based on the total paid by the customer including VAT (value added tax) and shipping. Here’s how it’s calculated:

Commission = ((Net Sales + Customer Shipping Fee + Any Platform Discount) – (Refunded Sales + Refunded Platform Discount)) × Commission Rate

So if you sold a product for £50, had £5 shipping, and offered a £2 TikTok discount—your total order value is £53.

TikTok would take 9% of that, which equals £4.77 in commission.

How to Pay Less Commission on TikTok Shop UK?

Let’s be honest, a 9% commission fee can feel like a lot when you’re just starting out.

The best part is TikTok Shop UK offers commission discounts to sellers who qualify the following conditions

Here’s how you can legitimately lower your fees and keep more money in your pocket:

New Seller

If you’ve recently opened your TikTok Shop, there’s a golden opportunity waiting for you.

Complete the Seller Mission (a simple onboarding checklist inside the Seller Centre), and you’ll unlock a special 3% commission rate—but only for your first 60 days.

That’s more than 65% off the standard 9% fee. Big savings if you plan to launch with a bang.

However, this reduced rate is time-limited, so the clock starts ticking the moment you’re eligible. Don’t wait too long to complete the mission.

Specific Categories: Electronics or Beauty Products

TikTok wants to encourage high-demand categories, so if your store sells in certain product categories, you’ll get an automatic commission discount—even if you’re not new.

Here’s the breakdown:

• Most Electronics products = 5% commission
• Select Beauty & Personal Care items = 5% commission

No fancy shop performance score or hidden requirements needed. If your product falls under the right category, you get the discount.
Just make sure you check the official category fee table (in Seller Centre) to confirm your products qualify.

Can TikTok Adjust Fees Later?

Absolutely—but they won’t do it quietly.

TikTok commits to giving sellers at least 30 days’ notice before any commission fee changes take effect. You’ll usually be notified via:

• Email
• Seller Centre dashboard
• Official TikTok Shop policies

Sometimes they’ll even send a few reminders. Still, it’s your responsibility to stay informed. So make it a habit to check your seller inbox and the TikTok Shop UK Policies page regularly.

How Are TikTok Shop Fees Charged?

The commission fee is automatically deducted from your order settlement. No separate invoices or payments.

And yes, all commission rates are inclusive of tax, including VAT.

What Happens to Commission Fees When a Customer Returns an Order?

Returns are part of online selling life but the good news is TikTok Shop doesn’t keep your commission if the order doesn’t stick.

Here’s how it works:

Full Return = Full Commission Refund

If the buyer sends the entire order back, you’ll get 100% of the commission fee refunded—no strings attached.

Partial Return = Partial Refund

Let’s say someone ordered 3 items but only returned 1. In that case, TikTok will refund you only the commission related to that returned item.

You still keep the rest (and the commission fee for the items they kept stays deducted).

So yes, you’re only charged for what actually sells and sticks.

Do You Get an Invoice for All These Fees?

Yes, you’re not left in the dark.

Every month, TikTok Shop will send you an official invoice detailing all the commission fees charged during the previous month’s billing period.

You’ll receive it the following month—so for example, your April fees invoice will land in May.

It’s all organised inside your Seller Centre, so if you ever need to track or reconcile fees, you’ve got the paperwork to back it up.

TikTok Shop Shipping Costs

Shipping might not show up as a direct TikTok Shop fee—but that doesn’t mean it’s free. Whether you’re packing orders yourself, partnering with a third party, or using Fulfilled by TikTok (FBT), you’ve got to figure out how your products are getting to your customers—and who’s paying for it.

You have two main options: either you eat the shipping cost or your customers do.

Free shipping? It’s a solid way to boost conversions and keep shoppers happy. But it also means you’ll need to absorb that cost, which can chip away at your margins fast.
Charge for shipping? That might help your bottom line, but don’t be surprised if it turns some buyers off.

Like everything on TikTok Shop, it’s all about balance. Find what works for your audience—and your business.

Comparing TikTok Shipping Options: Seller-Handled, TikTok-Handled, and FBT

Let’s break down the three main shipping options available for sellers:

Shipping by Seller

• Cost: You cover the shipping costs.
• Delivery Time: Depends on your carrier and location.
• Best For: Sellers who want full control over their shipping process. If you’ve already got shipping partners or discounted rates, this gives you flexibility, but you’ll need to put in a little extra work.

Shipping by TikTok

• Cost: TikTok takes care of the shipping, and you’ll pay a fee based on the product size, weight, and destination.
• Delivery Time: Usually 3-7 days, depending on where your customer is located.
• Best For: Sellers who want simplicity. If you’d rather focus on marketing and sales, let TikTok handle the logistics while you take care of business.

FBT (Fulfilled by TikTok)

• Cost: You send your products to TikTok’s fulfillment centers, and they take care of everything. Fees are based on storage, handling, and shipping.
• Delivery Time: Fast—typically 1-3 days with express shipping options.
• Best For: Sellers looking to scale up without dealing with inventory or fulfillment. It’s perfect for high-volume products or items that need quick delivery.

How Is the Shipping Fee Calculated?

Let’s talk about how shipping rates are actually calculated on TikTok Shop.
TikTok uses real-time shipping rate calculations based on a few key factors: your product’s weight, its size, and how fast the buyer wants it delivered.

Want to see the numbers for yourself?
Here’s how:
Log into your Seller Center account, head to the “Orders” section from the left-hand menu, then click on “Shipping and Delivery Settings.” From there, hit the “Delivery” tab, and you’ll find the shipping rate calculator ready to go.

It’s a handy tool to help you price smarter and avoid any surprises.

For UK Regions it shows like this

From there, you can enter the specific shipment information to calculate your rate

Source

You’ll see an estimated shipping fee at checkout based on TikTok’s negotiated rates with carriers like UPS, USPS, and FedEx.

Once your package is picked up and scanned by the shipping carrier, the actual shipping fee is confirmed and reflected on your Settlement Details page. This is the final amount you’ll pay for shipping.

What About the Buyer’s Shipping Fee?

The shipping cost the buyer sees during checkout is also based on TikTok best available rates. TikTok calculates buyer shipping fees based on what the seller will pay. This means:

• No surprises – the buyer’s shipping fee usually matches your actual cost.
• No losses – if the buyer uses a shipping coupon, TikTok reimburses you after delivery.
• More control – unless you choose a more expensive carrier or service, there shouldn’t be any cost differences.

Avoid Extra Charges

To prevent adjustments or unexpected fees:

• Always enter accurate weight and dimensions for your products.
• Watch out for oversized or high-volume packages, which may trigger surcharges.
• Use TikTok’s Shipping Calculator in Seller Center to preview your rates before printing labels.

TikTok Shop Ads Costs – The Real Deal

Want to sell on TikTok Shop but not sure about the ad costs? We’re breaking it down—no fluff, just straight facts. For different formats, you will have to pay differently.

In-Feed Shopping Ads

• • The bread and butter of TikTok Shop. These scroll-stopping videos pop up in users’ feeds with a “Shop Now” button.
  • Cost:
    • CPM (Cost per 1,000 views): ~5––15
    • CPC (Cost per click): 0.20–1.50 (cheaper than regular TikTok ads!)
  • Budget? Start as low as $20/day—no crazy minimums.

Spark Ads (UGC-Style Promos)

• • Boost your organic posts (or steal competitors’ viral content—yes, really).
  • Cost: Similar to In-Feed, but often cheaper CPM (3–8) because they look native.

Live Shopping Ads

• • Go live, hype your products, and pay only when people watch (0.03–0.10 per view).

Dynamic Product Ads (DPA)

• • Retarget shoppers who ghosted your store.
  • Cost: 3–10 per purchase (aka cheap conversions).

What Changes Your Costs?

• Niche = Price Tag (Beauty? Competitive. Pet gadgets? Less so.)
• Bidding Smart = More Bang for Buck (Use oCPM to let TikTok auto-optimize).
• Creative = King (Crappy ad? Higher costs. Viral-style? TikTok rewards you).

The Big Question: Can Small Businesses Afford This?

YES

• $20/day can get you testing.
• TikTok Shop Promotions (boost organic posts for
• 3–50).
• New seller perks? Sometimes free ad credits ($100+).

Pro Tip:

Don’t blow cash on Brand Takeovers (those are for big brands). Stick to In-Feed, Spark, & Live Ads—they’re the real money-makers. TikTok Shop ads are cheaper than you think—if you play it smart.

Conclusion

Selling on TikTok Shop can be a game-changer for your business, but understanding the TikTok Shop fees is crucial to maximizing your profits. From commission rates (as low as 3% for new sellers!) to shipping costs (seller-handled vs. TikTok-fulfilled) and advertising expenses (starting at just $20/day), every fee impacts your bottom line.

TikTok Shop offers discounts, flexible shipping options, and affordable ad strategies—so you don’t have to break the bank to succeed. Whether you’re a new seller looking to save on fees or an established brand scaling with ads, the key is planning, optimizing, and staying informed.

If you’re unsure about managing tasks like product research, order fulfillment, and marketing for your TikTok Shop, Tiksly can help. Our Virtual Assistants take care of the details, letting you focus on growing your business. With no upfront costs, we only earn when you earn, making it a results-driven partnership.

Now that you understand where your money goes, you can price smarter, advertise more efficiently, and keep more profit. Ready to start selling? Test what works and watch your TikTok Shop thrive.