New Seller Referral Fee Promotion - 2025
03/03/2025
Summary
What is the Referral Fee Promotion Program for new sellers on TikTok Shop?
- New sellers achieving a first sale and GMV >0 within 60 days post-onboarding receive a 30-day discounted referral fee rate of 3%.
- This rate takes effect within 48 hours after the first order is placed and reverts to category-based rates after 30 days.
How is the referral fee calculated and what happens in case of refunds?
- Referral Fee = 3% * (Customer Payment + Platform Discount - Tax).
- In refunds, TikTok refunds the referral fee minus a 20% Refund Administration Fee to cover processing costs.
What are the implications for sellers regarding changes to TikTok Shop policies?
- TikTok may modify policies, notifying users 30 days prior to material changes, but sellers must review updates regularly.
- TikTok reserves the right to change or terminate the referral fee promotion at any time.
TikTok Shop may modify this Article from time to time, in which case TikTok will update the “Last Revised” date at the top of this Article. If TikTok makes material changes to this Article, TikTok will use reasonable efforts to notify you, such as by email or notifications in your User Account, 30 days before the changes take effect. However, it is your sole responsibility to review this Article from time to time to stay apprised of all updates.
TikTok Shop reserves the right to change or terminate the referral fee promotion at our discretion at any time.
Refund administration fee: If a refund, return, or cancellation occurs after the customer successfully places an order, TikTok Shop will refund the referral fee amount for the product(s), minus the appropriate "Refund Administration Fee," which is 20% of the referral fee. This fee is intended to cover the costs TikTok Shop incurs when processing refunds.
Examples
Note:
Referral Fee Promotion Program
Starting from April 1, 2025 (GMT-8), new sellers who achieve first sale and GMV >0 within 60 days after completion of onboarding will receive a 30-day discounted referral fee rate of 3%, which will take effect within 48 hours after the first order is placed. After 30 days, sellers will be charged the referral rate based on their category.TikTok Shop reserves the right to change or terminate the referral fee promotion at our discretion at any time.
Definitions
Referral Fee: The fee that TikTok Shop charges and collects on all completed orders.Refund administration fee: If a refund, return, or cancellation occurs after the customer successfully places an order, TikTok Shop will refund the referral fee amount for the product(s), minus the appropriate "Refund Administration Fee," which is 20% of the referral fee. This fee is intended to cover the costs TikTok Shop incurs when processing refunds.
Fees
Referral fee calculation formula | Referral Fee = 3% *(Customer Payment + Platform Discount - Tax) |
Refund | If a refund, return, or cancellation occurs after the customer successfully places an order, TikTok Shop will refund the referral fee amount for the product(s), minus the appropriate "Refund Administration Fee," which is 20% of the referral fee. |
Referral fee promotion | |||
Successfully placed order | Partially refunded order | Fully refunded order | |
Customer Payment | $98 | $98 | $98 |
Customer Refund | / | -$49 | -$98 |
Platform Discounts | $4 | $4 | $4 |
Platform Discounts Refunds | / | -$2 | -$4 |
Sales tax payment + Retail delivery fee payment | $2 | $2 | $2 |
Sales tax refund + Retail delivery fee refund | / | -$1 | -$2 |
Referral fee rate | 3% | ||
Referral fee calculation | Referral Fee = 3% *(Customer Payment + Platform Discount - Tax) | ||
Referral fee | 3%*($98+$4-$2)=$3 | 3%*(($98-$49)+($4-$2)-($2-$1))=$1.5 | $0 |
Refund administration fee | / | $3*50%*20%=$0.3 | $3*20%=$0.6 |
- Customer payment includes the shipping fee paid by the customer, after shipping fee discount from seller or TikTok Shop.
- You can click here to learn more about what the retail delivery fee is.