Dynamic Settlement Policy

Purpose and Scope

This TikTok Shop Dynamic Settlement Policy (the "Policy") outlines the requirements sellers must meet to receive expedited settlements on TikTok Shop. This policy supplements TikTok's Community Guidelines and Seller Terms of Service (collectively, "TikTok Terms").
This policy is not intended as legal advice. For any questions regarding US laws and regulations, we encourage all users to seek independent legal advice.
This policy is updated periodically. Sellers must check this document regularly to ensure compliance with our current policy. TikTok Shop reserves the right to make changes to any policy at any time without prior notice.

Policy Statements

All TikTok Shop sellers are required to comply with this policy.
The standard settlement for a seller out of probation is seven days after an order is delivered. However, TikTok Shop rewards sellers with faster settlements based on performance metrics. This policy is dynamic, meaning that improved shop performance speeds up settlements and declining shop performance extends settlement time.
Note: A reserve percentage, determined by the seller’s fulfillment performance and risk score, is applied to each order. The corresponding reserve amount is withheld beyond the standard settlement period. This measure mitigates risks related to refunds, disputes, and outstanding fees. For more information, refer to the TikTok Shop Reserve Policy.
TikTok Shop reserves the right to withhold settlement amounts and use these funds to offset any losses based on a seller's activities. Refer to the TikTok Shop Seller Enforcement Policy for more information.

Types of Settlement Periods

There are five tiers of settlement periods.
  • Introductory Settlement Period: An introductory settlement period is for newly onboarded sellers or sellers on probation.
  • Standard Settlement Period: This is the default tier that automatically applies to all sellers out of probation.
  • Accelerated Settlement Period: This tier offers a faster settlement period compared to the Standard, and eligibility is determined by shop performance.
  • Express Settlement Period: The quickest settlement period available on TikTok Shop. Express Settlement is assigned based on your shop performance.
  • Deferred Settlement Period: This tier occurs while TikTok Shop is completing platform and/or seller security checks.
Sellers with temporary account restrictions may be placed in the Standard Settlement Period, regardless of performance. Sellers may also be placed in the Deferred Settlement Period while TikTok Shop completes platform and/or seller security checks. For more information, refer to the FAQs: Temporary Account Restrictions article.

Requirements for Settlement Tiers

To determine settlement tier qualification, seller evaluations are conducted at the beginning of every month. TikTok Shop evaluates a seller's performance based on the Shop Performance Score (SPS), the number of orders shipped in the previous 15 - 45 days, and temporary account restrictions (if any). This evaluation determines which settlement tier a seller qualifies for based on the criteria below.Note: Shop Performance Score(SPS) can be checked in the Seller Center.
Settlement Tier
Estimated Payout Period
Settlement Criteria
Introductory Settlement31 days from the delivery dateSellers who meet one or more of the following conditions
  • Newly onboarded sellers after February 12, 2025
  • Sellers entering shop probation after February 12, 2025
Standard Settlement8 days from the delivery date
Sellers who meet one or more of the following conditions
Accelerated Settlement5 days from the delivery date
Sellers who meet all of the following conditions during the evaluation period:
  • Sellers with at least 50 orders shipped during the evaluation period
  • Sellers with an SPS score equal to or more than 3.5 and less than 4
  • Sellers out of probation
  • Sellers without temporary account restrictions
Express Settlement1 day from the delivery dateSellers who meet all of the following conditions during the evaluation period:
  • The number of orders shipped during the evaluation period must be more than 500 (or more than 100 orders for sellers with more than $10,000 GMV during the evaluation period)
  • The seller's SPS score is more than or equal to 4
  • Sellers out of probation
  • Sellers without temporary account restrictions
Deferred Settlement31 days from the delivery dateIn the event that TikTok Shop deems it necessary to complete security or policy-related compliance checks, the sellers will be placed into deferred settlement temporarily.
If you have questions regarding settlement tier eligibility, please contact TikTok Shop Customer Service.
Note: Sellers can explore the Daily Advance feature, which provides up to 80% of the shipment amount the day after shipment. Eligibility is determined by Storfund based on business performance. For details on how it works and associated costs, refer to the Learn About Daily Advance article.