Dynamic Settlement Policy
03/31/2025
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.
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 Settlement | 31 days from the delivery date | Sellers who meet one or more of the following conditions
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Standard Settlement | 8 days from the delivery date | Sellers who meet one or more of the following conditions
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Accelerated Settlement | 5 days from the delivery date | Sellers who meet all of the following conditions during the evaluation period:
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Express Settlement | 1 day from the delivery date | Sellers who meet all of the following conditions during the evaluation period:
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Deferred Settlement | 31 days from the delivery date | In 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. |
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.