Resources

TikTok Shop glossary

Every acronym and seller term you'll meet in Seller Center, Ads Manager and Affiliate Center — explained in plain English.

A

Account Health

Account health is the overall standing of your TikTok Shop, based on your Shop Performance Score, policy violation points, fulfillment metrics and customer feedback. Poor account health can lead to warnings, listing or promotion restrictions, and eventually suspension. You can monitor it in the account health section of Seller Center. Learn more about Account Health

Affiliate Center

Affiliate Center is the area of Seller Center where you run your creator affiliate program. From here you set commission rates, create open and targeted collaborations, manage free sample requests and track the sales creators generate for your products. Learn more about Affiliate Center

Appeal

An appeal is a formal request asking TikTok to review and reverse a decision, such as a listing removal, violation, payout hold or account suspension. Strong appeals explain what happened, show what you have fixed and include supporting evidence. The final decision always rests with TikTok. Learn more about Appeal

Attribute

Attributes are the structured product details you fill in when creating a listing, such as brand, material, size, color or ingredients. TikTok uses them for search filters and recommendations, and some categories make certain attributes mandatory, so complete them accurately. Learn more about Attribute

Average Order Value (AOV)

Average order value is the average amount a customer spends per order, calculated as total revenue divided by the number of orders. Sellers raise AOV with bundles, multi-buy offers and free shipping thresholds, which helps spread fees and ad costs over a bigger sale. Learn more about Average Order Value

B

Brand Authorization

Brand authorization is proof that you are allowed to sell a brand on TikTok Shop. Brand owners usually register the brand with trademark or ownership documents, while resellers typically need an authorization letter from the brand owner or an authorized distributor. Requirements vary by market and category, so check Seller Center. Learn more about Brand Authorization

Break-even ROAS

Break-even ROAS is the return on ad spend at which an ad campaign neither makes nor loses money after product costs, fees, shipping and commissions. If your ROAS falls below this number, every sale from ads loses money. It is calculated as 1 divided by your profit margin before ad spend. Learn more about Break-even ROAS

Bundle

A bundle is a group of products sold together as one listing or offer, such as a three-pack or a set of complementary items. Bundles can raise average order value and make fees and shipping more efficient per item, but they must be priced so the combined margin still works. Learn more about Bundle

C

Cancellation Rate

Cancellation rate is the share of orders cancelled by the seller, often because items are out of stock or cannot ship on time. TikTok Shop tracks it as a fulfillment metric, and a high rate can lower your Shop Performance Score and lead to violation points. Learn more about Cancellation Rate

Category Approval

Category approval is TikTok Shop's review process for products in categories it considers higher risk, such as health, beauty, electronics or food. You may need to submit business details, product certificates or test reports before you can list. Which categories require approval varies by market and changes over time. Learn more about Category Approval

Click-Through Rate (CTR)

Click-through rate is the percentage of people who saw a product, video or ad and then tapped on it. On TikTok Shop, a low CTR usually points to a weak main image, title, price display or video hook, so it is one of the first metrics to check when products get impressions but few visits. Learn more about Click-Through Rate

Conversion Rate (CVR)

Conversion rate is the percentage of visitors or viewers who go on to place an order. On TikTok Shop it is usually measured from product page views to purchases, and it is shaped by price, images, reviews, shipping speed and how well the content matches the product. Learn more about Conversion Rate

Cost of Goods Sold (COGS)

Cost of goods sold is what it costs you to make or buy each product you sell, often including packaging and inbound freight. COGS is the starting point for working out real profit after TikTok Shop fees, shipping, affiliate commissions and ad spend. Learn more about Cost of Goods Sold

Cost per Acquisition (CPA)

Cost per acquisition is the average ad spend needed to win one order or customer, calculated as total ad spend divided by the number of conversions. Comparing CPA with your profit per order shows whether a campaign is actually making money. Learn more about Cost per Acquisition

Cost per Mille (CPM)

Cost per mille is what you pay for one thousand ad impressions. CPM reflects how competitive the auction is for your audience and placement, and it tends to rise during busy shopping periods. A low CPM only helps if the ads also drive clicks and sales.

Coupon (Voucher)

A coupon, also called a voucher, is a discount shoppers can claim and apply at checkout, such as a fixed amount off or a percentage off above a minimum spend. Sellers create them in the promotions area of Seller Center, and TikTok may also fund platform coupons during campaigns. Remember to include coupon costs in your margin calculations. Learn more about Coupon

Creator Commission

Creator commission is the percentage of each sale you pay an affiliate creator who drives the order through their video, LIVE or showcase. You set the rate in Affiliate Center, either openly for all creators or as a custom rate for specific creators. Commission is calculated on the sale and comes out of your margin along with platform fees. Learn more about Creator Commission

D

Dropshipping

Dropshipping is a model where you sell products without holding inventory, and a supplier ships orders directly to customers. On TikTok Shop it only works with suppliers who can meet strict shipping deadlines and quality standards, because late dispatch and poor reviews hurt your Shop Performance Score. Learn more about Dropshipping

F

Flash Deal

A flash deal is a time-limited discount on selected products, often shown with a countdown to create urgency. Sellers can set them up in the promotions tools in Seller Center. Eligibility, minimum discounts and duration rules can vary, so check the current requirements before planning a campaign.

Free Sample

A free sample is a product you send to an affiliate creator at no cost so they can make content about it. Creators request samples through Affiliate Center, and you can approve or decline each request based on the creator's audience and past performance. Learn more about Free Sample

Fulfilled by TikTok (FBT)

Fulfilled by TikTok is TikTok's own fulfillment service, where you send inventory to TikTok-operated warehouses and TikTok stores, packs and ships your orders. It can help with shipping speed and fulfillment metrics, but it comes with its own fees and inventory requirements. Availability depends on your market and category. Learn more about Fulfilled by TikTok

G

GMV Max

GMV Max is TikTok's automated campaign type for promoting TikTok Shop products. You choose products, a budget and a return-on-investment target, and TikTok's system decides which videos, placements and audiences to use to maximize gross merchandise value. Setup options and requirements change as TikTok updates the product, so check TikTok Ads Manager. Learn more about GMV Max

Gross Merchandise Value (GMV)

Gross merchandise value is the total value of products sold through your shop over a period, before fees, refunds, discounts or costs are taken out. It is the headline sales number in Seller Center, but it is not profit, so always compare it with your margins. Learn more about Gross Merchandise Value

H

Hook

A hook is the opening moment of a video, usually the first few seconds, designed to stop viewers from scrolling. It can be a bold statement, a surprising visual, a question or a quick result. On TikTok Shop, the hook often decides whether a video gets watched long enough to sell anything. Learn more about Hook

K

Keyword

A keyword is a word or phrase shoppers type into TikTok search when looking for a product. Using relevant keywords naturally in your product title, description and attributes helps TikTok match your listings to those searches, while keyword stuffing can get listings rejected. Learn more about Keyword

L

Late Dispatch Rate (LDR)

Late dispatch rate is the percentage of orders you ship after the deadline TikTok Shop sets for handing parcels to the carrier. It is one of the key fulfillment metrics, and a high rate can lower your Shop Performance Score and add violation points. Check Seller Center for the current target in your market. Learn more about Late Dispatch Rate

LIVE Shopping

LIVE Shopping is selling products in real time during a TikTok LIVE stream, with pinned products viewers can buy without leaving the stream. Sellers and affiliate creators use it for demonstrations, Q&A, limited-time offers and product launches. Learn more about LIVE Shopping

N

Negative Feedback Rate

Negative feedback rate measures how often buyers leave low ratings, complaints or other negative signals on your orders and products. TikTok Shop uses it as part of product and service quality metrics, so recurring issues with quality, sizing or descriptions can affect your Shop Performance Score. Learn more about Negative Feedback Rate

O

Open Collaboration

An open collaboration is an affiliate offer available to any eligible creator, who can add your product to their showcase and earn the commission rate you set without individual approval. It is a simple way to get broad creator reach, but you have less control over who promotes your product. Learn more about Open Collaboration

P

Payment Processing Fee

A payment processing fee covers the cost of handling buyer payments. Depending on the market, TikTok Shop may charge it separately or include it in a combined fee, and it is usually calculated on the order total. Check Seller Center for the current fee structure where you sell. Learn more about Payment Processing Fee

Payout (Settlement)

A payout, or settlement, is the money TikTok Shop transfers to your bank account after fees, commissions and refunds are deducted. Funds are typically released after an order is delivered and any holding period ends. Settlement timing varies by market and account status, and you can track it in the finance section of Seller Center. Learn more about Payout

Policy Violation Points

Policy violation points are penalties TikTok Shop adds to your account when you break a rule, such as listing a prohibited item, making misleading claims or shipping late. Points accumulate over a set period, and reaching certain thresholds can trigger restrictions or suspension. Thresholds and point values vary by policy and market. Learn more about Policy Violation Points

Private Label

Private label means selling products made by a manufacturer under your own brand name and packaging. It gives you more control over pricing, quality and branding than reselling, and lets you register your brand on TikTok Shop, but it requires upfront investment in inventory. Learn more about Private Label

Product Card

A product card is the compact tile that shows a product's image, title, price and rating in places like the Shop tab, search results and creator showcases. Tapping it opens the product detail page. A clear main image and concise title make the biggest difference to how often people tap. Learn more about Product Card

Product Detail Page (PDP)

The product detail page is the full listing a shopper sees after tapping a product, with images, video, price, variants, description, reviews and shipping information. Every traffic source, from creator videos to ads, sends shoppers here, so it has a big influence on conversion rate. Learn more about Product Detail Page

Product Listing Quality

Product listing quality is TikTok Shop's assessment of how complete and accurate your listings are, looking at elements such as titles, images, descriptions and attributes. Higher-quality listings are easier for TikTok to recommend, while poor or misleading ones may be limited or removed. Learn more about Product Listing Quality

Profit Margin

Profit margin is the percentage of the selling price you keep after all costs, including product cost, TikTok Shop fees, shipping, creator commissions, discounts and ad spend. Knowing your true margin tells you how much you can afford to spend on ads and affiliates. Learn more about Profit Margin

R

Referral Fee

The referral fee is the commission TikTok Shop charges on each sale, calculated as a percentage of the order value. Rates vary by market and category and can change, and new sellers may be offered promotional rates. Check the fees page in Seller Center for the current rate that applies to your products. Learn more about Referral Fee

Refund Administration Fee

A refund administration fee is a charge TikTok Shop may apply when you refund an order, typically by keeping part of the referral fee it originally collected. How it is calculated and whether it applies depends on your market and the refund situation, so check the fee policy in Seller Center. Learn more about Refund Administration Fee

Reinstatement

Reinstatement is the restoration of a suspended, restricted or deactivated TikTok Shop account, usually after a successful appeal. It typically requires fixing the issue that caused the action and providing evidence. TikTok decides every case, and some suspensions are permanent. Learn more about Reinstatement

Reserve

A reserve is a portion of your sales balance that TikTok Shop may hold back for a period to cover potential refunds, returns or chargebacks. Reserves are more common for new shops or accounts flagged as higher risk. The amount and duration vary, and you can see any held funds in the finance section of Seller Center. Learn more about Reserve

Restricted Category

A restricted category is a product category you cannot list in until TikTok Shop approves your shop, often because the products carry safety, health or authenticity risks. Examples can include supplements, cosmetics, electronics and jewelry. The list varies by market and changes over time, so check Seller Center before sourcing. Learn more about Restricted Category

Return on Ad Spend (ROAS)

Return on ad spend is the revenue generated for every dollar spent on ads, calculated as ad-attributed sales divided by ad spend. A ROAS of 3 means $3 in sales for every $1 spent. Whether a ROAS is good depends on your margins, which is why you should compare it with your break-even ROAS. Learn more about Return on Ad Spend

Return Rate

Return rate is the percentage of orders that customers send back or request refunds for. High return rates eat into profit through lost sales, shipping and fees, and can signal problems with product quality, sizing or misleading listings that may also affect your shop's performance metrics.

S

Seller Center

Seller Center is the dashboard where you run your TikTok Shop. It is where you manage products, orders, shipping, promotions, affiliates, finances, customer messages and account health, and it is the most reliable place to check current fees and policies.

Seller Fulfilled Shipping

Seller fulfilled shipping means you or your own warehouse partner pick, pack and ship TikTok Shop orders, rather than using Fulfilled by TikTok. You keep more control over inventory and packaging, but you are fully responsible for meeting dispatch deadlines and tracking requirements. Learn more about Seller Fulfilled Shipping

Shop Performance Score (SPS)

The Shop Performance Score is a rating TikTok Shop gives your store based on metrics such as fulfillment, customer service and product satisfaction. It can affect your eligibility for campaigns, promotions and other features, and a low score can lead to restrictions. The exact calculation varies by market, so check Seller Center. Learn more about Shop Performance Score

Shop Tab

The Shop tab is the shopping section inside the TikTok app where users can browse products, search, view deals and revisit past orders. Products can appear there through search, recommendations and promotions, so strong listings matter even without video traffic. Learn more about Shop Tab

Shoppable Video

A shoppable video is a TikTok video with a product link attached, so viewers can tap through to the product and buy without leaving the app. Sellers and affiliate creators post them organically, and they can also be used as ads. Learn more about Shoppable Video

Showcase

A showcase is the product collection on a creator's TikTok profile where they list the items they promote as affiliates. Followers can browse and buy from it, and creators earn commission on those sales just as they do from videos and LIVE streams. Learn more about Showcase

Spark Ads

Spark Ads are TikTok ads that use existing organic posts, either from your own account or from creators who give you an authorization code. Because they keep the original video's likes, comments and creator identity, they often feel more native than standard ads. Learn more about Spark Ads

Stock Keeping Unit (SKU)

A stock keeping unit is a unique code you assign to each sellable version of a product, so a T-shirt in three sizes and two colors has six SKUs. SKUs keep inventory, orders and fulfillment accurate, especially when you sell across several platforms.

T

Targeted Collaboration

A targeted collaboration is an affiliate offer you send to specific creators you have chosen, usually with a custom commission rate and sometimes free samples. It gives you more control over who promotes your product than an open collaboration, but it takes more time to manage. Learn more about Targeted Collaboration

Third-Party Logistics (3PL)

A third-party logistics provider, or 3PL, is an outside company that stores your inventory and picks, packs and ships orders for you. Many TikTok Shop sellers use a 3PL instead of, or alongside, Fulfilled by TikTok, as long as it can meet TikTok's dispatch deadlines. Learn more about Third-Party Logistics

TikTok Ads Manager

TikTok Ads Manager is the platform where you create and manage paid TikTok campaigns, including GMV Max and Spark Ads. It connects to your TikTok Shop so ad-driven orders can be tracked and reported alongside your shop data. Learn more about TikTok Ads Manager

U

User-Generated Content (UGC)

User-generated content is video or imagery created by real customers or creators rather than produced as a polished brand ad. On TikTok, UGC often feels more trustworthy and native to the feed, and it can be used organically or as ads when you have the right usage permissions. Learn more about User-Generated Content

V

Variant

A variant is a version of a product within the same listing, such as a different size, color or pack quantity. Each variant usually has its own SKU, price and stock level, and grouping variants correctly keeps reviews and sales together on one product page. Learn more about Variant

W

White Label

White label refers to a ready-made generic product that a manufacturer sells to many businesses, each of which rebrands it as its own. It is faster and cheaper to launch than a custom private label product, but competitors may sell nearly identical items. Learn more about White Label

Wholesale

Wholesale means buying established branded products in bulk from the brand or an authorized distributor and reselling them at retail prices. On TikTok Shop you will usually need brand authorization to list them, and margins depend heavily on your buying price. Learn more about Wholesale

Winning Product

A winning product is seller shorthand for an item that sells consistently well and profitably. On TikTok Shop that usually means it is easy to demonstrate on video, solves a clear problem, has healthy margins after fees and commissions, and can ship reliably. Learn more about Winning Product

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