Key Points:

• Seller payouts are determined by monthly performance reviews, which set both your payout timing (Settlement Tier) and the portion of funds held in reserve.
• Reserve funds are held for 30 days to cover potential returns or refunds, and any unused reserves are released to you after this period.
• TikTok Shop may adjust your payout schedule or reserve level at any time based on account status or security checks.

Purpose and Scope

The Dynamic Settlement and Reserve Policy outlines the process for seller payouts and reserve funds. This ensures timely payments and compliance with platform guidelines. This policy applies to all sellers on TikTok Shop. There are no exceptions to this policy. It has 2 main parts:

1. Settlement Tiers – This determines when your earnings (minus any reserves) are paid out, based on successful order delivery and your performance as a seller.
2. Reserve Levels – A portion of your funds is held temporarily to cover possible returns or refunds. This helps protect the customer experience and the platform's integrity from potential issues like fraud or high return rates. If these reserve funds are not needed, they will be released and made available to you after 30 days.

Below is the normal payout process:
To decide the settlement tier and reserve levels, seller evaluations are conducted on the 1st day of every month. TikTok Shop evaluates a seller's performance based on:

• Shop Performance Score (SPS)
• Number of orders successfully delivered in the previous 15-45 days
• Temporary account restrictions (if any)

This evaluation determines which settlement tier and reserve level a seller qualifies for. To improve your tier, you should regularly monitor your Shop Performance Score and aim for a score above 4.0 to qualify for better terms. Note: Shop Performance Score (SPS) can be checked in Seller Center.
Once the evaluation is complete, sellers are assigned a settlement tier and a reserve level as described below.

Settlement Tier

There are 5 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: This is the quickest settlement period available on TikTok Shop and 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 may be placed in the Deferred Settlement Period at any time during the month while TikTok Shop completes platform and/or seller security checks. For more information, refer to the FAQs: Temporary Account Restrictions article.

Reserve Level

In addition to a settlement tier, each shop is also assigned a reserve level. A portion of earnings for each delivered order will be retained in reserves for 30 days from the delivery date. The exact amount is based on the reserve level assigned to your shop for that month.
TikTok Shop operates using 3 reserve levels:

• Level 1
• Level 2
• Level 3

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 our third-party financing partner, Storfund, based on business performance. For details on how it works and associated costs, refer to the Learn About Daily Advance article.
Key Takeaways: To achieve a better payout status, focus on maintaining an SPS above 4.0 and monitoring your delivered orders.

Enforcement Actions and Appeals

We regularly review shops for compliance with our policies. If violations are identified, we may take enforcement actions on your shop. These actions can be specifically triggered by issues related to this policy, and may include, but are not limited to:

• Deducting points from your Account Health Rating
• Removing product listings
• Revoking your access to offer products for sale
• Issuing refunds to customers

For more information on enforcement actions, refer to our Seller Enforcement Policy. If you would like to appeal an enforcement action, visit the Appeals section for guidance.