Understanding TikTok Shop Fees: A 2025 Guide
Discover TikTok Shop fees for 2025, including referral and transaction costs. Learn to maximize profits with Print on Demand!
TikTok Shop is rapidly emerging as one of the fastest-growing online marketplaces, offering creators and entrepreneurs the opportunity to reach billions of active users searching for their next purchase.
However, before you start selling, it’s essential to understand how TikTok Shop fees work.
This guide will break down the percentage TikTok Shop deducts from your sales, including transaction and referral fees. Plus, we’ll explore how Print on Demand can help you build a successful eCommerce business with minimal upfront costs and effort.
Key Takeaways
- TikTok deducts a percentage from each sale, with most products subject to a 6% referral fee, while certain jewelry items have a 5% fee.
- Transaction fees apply when withdrawing earnings—TikTok charges a $0.05 withdrawal fee, and the minimum cash-out amount is $2.
- Running ads on TikTok Shop requires a minimum budget of $50 per day, while individual ad groups need at least $20 per day.
- Fulfilled by TikTok (FBT) fees start at $3.58 per item, and free storage is limited to 30 days before additional charges apply.
- Regularly check the TikTok Shop Seller Center for fee updates and leverage Print on Demand with Tapstitch to cut costs and maximize profits.
Understanding the TikTok Shop fee structure
Selling on TikTok Shop presents a fantastic opportunity for small businesses to generate income. However, like any online marketplace, it comes with associated fees. Understanding these costs allows you to price your products strategically, ensuring you remain competitive while maximizing your profits.
Let’s dive into the real expenses of selling on TikTok Shop.
Marketplace Commission Fee (Referral Fees)
TikTok Shop charges a small percentage on each sale—known as the commission or referral fee.
How much does TikTok Shop cost?
As of Q1 2025, the standard commission fee is 6% per order for most products. However, certain jewelry items are subject to a slightly lower 5% fee.
Here’s how the commission fee is structured:
- It’s based on your product’s price – The fee applies before sales tax and shipping costs.
- It varies by category – Some product categories qualify for lower rates.
Example Calculation
Imagine you're selling a Unisex T-shirt for $12 on TikTok Shop. Since clothing falls under the 6% referral fee, the calculation would be:
$12 × 6% = $0.72
This means TikTok would deduct $0.72 from the sale, and you’d keep the remaining amount—before factoring in other costs like transaction fees and shipping.
Transaction Fees
Every sale on TikTok Shop is processed through a payment system, which incurs transaction fees.
Regardless of whether a customer pays with a credit card, debit card, or another method, here’s how transaction fees work:
- Fees vary by payment method – Depending on the bank or card processor, the fee may be a flat rate or a small percentage of the total sale.
- There’s a small withdrawal fee – TikTok charges $0.05 per withdrawal, and you must have at least $2 in earnings to cash out.
Example Calculation
Let’s revisit our $12 t-shirt sale to see how transaction fees impact earnings:
- Marketplace commission fee (6%): $0.72
- Bank withdrawal fee: $0.05
- Total fees: $0.72 + $0.05 = $0.77
- Your final earnings: $12 – $0.77 = $11.23
These small fees add up, so understanding them helps you price your products effectively to maximize profits.
Advertising Fees
If you plan to run ads on TikTok Shop, there are minimum budget requirements to ensure your ads run smoothly without interruptions.
Campaign-Level Budget (Overall Campaign Budget)
This is the total budget for your ad campaign, covering multiple ads under the same campaign.
- Daily budget: Minimum $50 per day
- Lifetime budget: At least $50 total for the entire campaign
Ad Group-Level Budget (Specific Ad Sets)
This budget applies to smaller groups of ads within a campaign. Each ad group can focus on different audiences or products, with its own spending limits.
- Daily budget: Minimum $20 per day
- Lifetime budget: $20 per day × the number of days the ad runs
Example Calculation
If you set up an ad group that runs for 10 days, the cost would be:
- Daily budget: $25 per day
- Lifetime budget: $250 total ($25 × 10 days)
Planning your ad spend carefully ensures you reach the right audience while staying within budget.
Fulfilled by TikTok (FBT) Fees
TikTok Shop’s Fulfilled by TikTok (FBT) program streamlines order fulfillment by handling storage and shipping, allowing sellers to focus on growing their business.
FBT Fee Breakdown (Effective January 16, 2025):
1.Co-Funded Free Shipping (CFFS) Program
- TikTok subsidizes $0.75 per item to help reduce shipping costs.
2.Fulfillment Fees (Based on Order Size)
- Single-unit orders: Starting at $3.58 per item.
- Multi-unit orders: Starting at $2.86 per item.
3.Optional Hub Placement Fees (For Inventory Distribution)
- Starts at $0.31 per unit if you store inventory in TikTok’s hubs.
4.Storage Fees (Effective March 5, 2025)
- First 30 days: Free storage.
- Days 31 to 90: $0.02 per cubic foot per day.
- Days 91 to 180: $0.06 per cubic foot per day.
- Days 181 to 365: $0.12 per cubic foot per day.
Example Calculation
For a $12 t-shirt stored and shipped through FBT:
Fulfillment fee (single-unit order): $3.58
- Storage fee (if stored for over 30 days, assuming 0.5 cubic feet per unit):
- 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 on TikTok Shop
Managing returns and refunds is an essential part of selling online. On TikTok Shop, sellers must account for the Refund Administration Fee, which covers processing costs when a refund is issued.
Refund Administration Fee Structure
- The fee is 20% of the original referral fee.
- It applies when a refund is processed, helping to cover transaction costs.
Example Calculation (Using a $12 T-shirt Sale)
- Product price: $12
- Referral fee (6%): $0.72
- Refund Administration Fee (20% of $0.72): $0.14
- Total refund fee: $0.14
TikTok Shop Fees Cheat Sheet
Here’s a quick breakdown of how fees apply when selling a Heavyweight Sunfade Oversized Hoodie for $45 on TikTok Shop.
So, if you sell a hoodie for $45 and apply all relevant fees, your final earnings would be $38.22 after withdrawal.
Advertising Costs to Keep in Mind
- A campaign-level ad requires at least $50 per day.
- An ad group-level ad requires at least $20 per day.
Understanding these costs helps you set the right pricing strategy to maximize profits while staying competitive on TikTok Shop.
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.
1.Stay Updated on Fee Changes
- Regularly check TikTok’s official sources:
- Set up email notifications for policy updates.
2.Join Seller Communities for Insider Tips
- Reddit’s TikTok Shop Sellers Club: Learn about pricing strategies, fee changes, and workarounds.
3.Follow Industry Blogs & Market Trends
- Tapstitch Blog: Get insights on TikTok marketing, product trends, and pricing strategies.
- E-commerce Newsletters: Stay informed about global marketplace trends.
Sell on TikTok with Tapstitch
Whether you’re just starting or already running a TikTok Shop, selling custom merch with Print on Demand is a simple and scalable way to grow your business.
Tapstitch makes it easy to create and sell unique, high-quality products without upfront costs, inventory, or fulfillment headaches. It’s the perfect solution for creators, entrepreneurs, and brands looking to monetize their audience on TikTok.
1.Sign Up for Free
2.Choose Your Products
Browse our catalog featuring trendy T-shirts, hoodies，all customizable to match your brand.
3.Upload & Customize Your Designs
Use our intuitive design tools to create unique, professional-quality merch. Preview realistic mockups before listing your products.
4.Sync with TikTok Shop
Seamlessly connect Tapstitch to TikTok Shop to automate product listings and order management.
5.Start Selling – We Handle the Rest
Once an order comes in, Tapstitch takes care of printing, packing, and shipping directly to your customers. You focus on driving sales, and we handle fulfillment.
FAQ
1.What are the fees to sell on TikTok Shop?
When you sell on TikTok Shop, you will have to pay some fees. TikTok takes a percentage from each sale, called a 'referral fee.' For most products, this fee is 6%, but for certain jewelry items, it is 5%. Additionally, there is a small transaction fee when you withdraw your earnings, which is $0.05, and you must have at least $2 to cash out.
2.What if I want to run ads for my products?
To promote your products on TikTok Shop through ads, you will need to set a budget. The minimum daily budget for a campaign is $50, and for ad groups, it’s $20 per day. This helps keep your ads running smoothly, and you can adjust your budget based on your needs.
3.Can I see updates on TikTok Shop fees?
Absolutely! It’s important to stay informed about changes in fees. You can do this by regularly checking the TikTok Shop Seller Center and their official announcements. Staying updated will help you price your products correctly.
4.How can I maximize my earnings on TikTok Shop?
To maximize your earnings, keep an eye on the fees, price your products wisely, and use free marketing tools available on TikTok. Engage with your audience regularly to grow your potential customer base.
Wrapping up
Selling on TikTok Shop is a powerful way to turn your content into revenue, but understanding the platform’s fees is key to keeping more of your earnings.
From commission rates to fulfillment costs, knowing what to expect allows you to price competitively and stay profitable.
Make TikTok Shop work for you by:
- Staying updated on fee changes
- Adjusting pricing to maintain margins
- Leveraging organic marketing to boost sales
Want a hassle-free way to sell custom products with no upfront costs or inventory worries? Tapstitch has you covered!
