Question 1

How much does TikTok Shop charge in fees?

Accepted Answer

TikTok Shop charges an 8% commission on each sale, plus a ~2% transaction/payment processing fee. If you use TikTok's affiliate program, you also pay creators a commission (typically 5-20%). Total platform fees can range from 10-30%.

Question 2

What is a good profit margin for TikTok Shop?

Accepted Answer

A healthy TikTok Shop profit margin is generally 20-30% or higher after all fees. Margins between 10-20% are workable but leave little room for ad spend increases. Below 10% is risky territory.

Question 3

What is break-even ROAS?

Accepted Answer

Break-Even ROAS is the minimum Return on Ad Spend you need to not lose money on advertising. Calculate it as: Gross Revenue divided by Ad Spend. Your break-even ROAS tells you the minimum performance your ads must achieve to remain profitable.