What Is Smart Promotion?

Smart Promotion is TikTok Shop’s one-stop seller marketing growth solution. It integrates platform marketing resources to help sellers reach users more precisely and grow store performance more efficiently.

• Smart Promotion (SP, fixed fee based on store GMV): TikTok Shop charges a fixed fee rate of the store’s total GMV, 3.5% during non-campaign periods and 4.5% during campaign periods. The fee structure is transparent and predictable.
• Smart Promotion - Co-funded Promotion Mode (CFP): TikTok Shop and sellers jointly fund promotions. Fees are charged at a variable rate based on discounted orders, so the cost structure may fluctuate.

Note: SP is currently the primary program model. CFP was the legacy model used in 2025, and only a small number of sellers have not yet completed the transition. Each seller can participate in only one model.

Seller Give & Take

Seller Give: a fixed fee rate of 3.5% / 4.5% during non-campaign / campaign periods, respectivelySeller Take: TikTok Shop guarantees discount resources of at least 3.5% / 4.5% during non-campaign periods / campaign periods, respectively

• Powered by advanced algorithms, TikTok Shop uses real-time competitor pricing, user behavior, traffic-channel context, and other signals to intelligently distribute multiple types of marketing resources for store products, improving overall efficiency.
• More than 60% of enrolled sellers achieved 20%+ GMV growth after joining SP.

Platform Discount Resources

TikTok Shop commits to providing your shop with a wide range of discount resources, exclusive product labels, and multi-channel user reach across shoptab, video and live.

• Platform-funded coupons and product incentives can reach users across scenarios such as homepage pop-ups, mall banners, product detail pages, videos, and live rooms.
• The platform will also provide an exclusive 1% Bonus cashback benefit for customers who place orders from enrolled shops. For every $100 spent, customers can receive at least $1 in cashback, fully funded by the platform.
• After joining SP, enrolled products will receive exclusive product labels on the product detail page, helping strengthen customer perception that the products are platform-recommended and trustworthy.

Unlock Core Platform Campaign Resources

SP has become the entry requirement for all platform-level major campaigns, Flash Sales, Premium Offers, and brand campaigns. Sellers must be enrolled to access core platform campaign resources.

• Sellers do not need to pay any additional fees when signing up for platform-level major campaigns (e.g., April Stock Up, Gear Up For Memorial Day in May, and Black Friday in November), Flash Sales and Premium Offers. They can also enjoy stacked platform discount resources.
• Since June, SP has also become the participation requirement for brand campaigns, including Super Brand Day, Spotlight Day, New Arrivals, etc.

Sign-Up Process

Sign-up link（L2L）：Seller center -> Marketing -> Smart Promotion **If you need to sign up for CFP, please contact your Account Manager (AM).

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FAQ

I. Enrollment and Exit

1. What are the eligibility criteria for joining the Smart Promotion program?

To participate in Smart Promotion, you must meet the following merchant eligibility criteria:

• If you have a Shop Performance Score, it must be 3.5 or higher.
  • You can view your Shop Performance Score if you have completed at least 30 orders within the past 90 calendar days.
  • If you do not have a Shop Performance Score, you must have fewer than 3 violation records related to prohibited products or content in the past 30 days.
• AHR > 150
• Compliance with Platform Safety and Compliance Standards and eligibility for program participation.

Recommended Actions:

• Review and resolve account and operational compliance issues in the Account Health center
• If needed, please contact our Support Team for further evaluation.

2. How long can I participate in the program?

Once successfully enrolled, you may participate in the program on a long-term basis at your discretion. To remain eligible, you must meet the criteria mentioned above.

3. Can I opt out of the program at any time?

Yes, you may opt out and opt in at any time.

II. Fees and Promotion Rules

1. How does Smart Promotion work?

After joinning Smart Promotion, TikTok Shop charges a fixed percentage of storewide GMV: 3.5% during regular periods and 4.5% during major campaign periods. Based on advanced algorithms, TikTok Shop distributes three types of promotion tools to users: coupons, product incentives, and bonus. These tools precisely target users and help stores drive GMV growth. TikTok Shop guarantees that sellers receive a platform discount rate of at least 3.5% during regular periods and at least 4.5% during major campaign periods, ensuring strong value for investment in Smart Promotion.

2. Can I switch from Co-funded Promotion Mode to Smart Promotion? (CFP only)

On March 3, 2026, most merchants completed the transition from CFP to Smart Promotion. If you are still on CFP and would like to switch, please contact your Account Manager. They will help you submit the transition request and complete the switch within one week.

3. What is the relationship between Smart Promotion and Platform Campaigns, Flash Sales, Premium Offers, Weekly Campaigns, and Brand Campaigns?

• Prerequisite: Starting in April, enrolling in Smart Promotion will become a mandatory prerequisite for registering in Platform Campaigns, Flash Sale, Premium Offer, and Weekly Promos. Starting in June, Smart Promotion also became the participation requirement for brand campaigns such as Super Brand Day, Spotlight Day, New Arrivals.
• Discounts: Once enrolled, the platform will provide discounts during both daily and promotional periods to drive GMV. The discount rate during campaign periods will be almost doubled vs. non-campaign period.
• Registration: You can trigger the Smart Promotion registration directly on the Platform Campaign page. Conversely, once joined SP, you can also find campaign registration links on the Smart Promotion project page.

4. Can I view future fee rate changes?

Yes. Your fee rate will increase during campaign periods. You can check the Calendar on the SP homepage to view upcoming rate changes and charging rules.

5. Can I exclude specific products from Smart Promotion?

Yes. To exclude specific products from the Program, please contact your Account Manager (AM). They will assist you in identifying and managing the products you wish to exclude.

6. Does the shop-wide GMV fee include products previously exempted or blacklisted from discounts in SP mode? Can those products still receive discounts?

Blacklisted PIDs will not receive Smart Promotion platform discount resources. Starting in June, Smart Promotion has launched the capability to exclude blacklisted PIDs from charging, meaning blacklisted products will no longer be included in the calculation of the Smart Promotion fixed fee. If you want to restore a previously exempted PID, please contact your Account Manager to submit the request.

7. Can I set a budget cap?

• Smart Promotion: Charges a fixed rate based on store-wide GMV; setting a budget cap is not supported.
• Co-funded Promotion Mode: If you wish to set a cap, please contact your AM to apply. Starting in May, the budget cap you set should be higher than $7000/month.

8. How is the fee reflected in order settlement?

In your settlement orders, there will be a specific indicator for the Smart Promotion fee, allowing you to view the exact charge in the details of each order. The fee item will be listed as "Smart Promotion Fee" (for the Smart Promotion mode) or "Co-funded promotion service fee" (for the Co-funded Promotion mode).
Please note the distinction: Only the fee items shown on the settlement statement represent your actual program expenses. The Smart Promotion discounts displayed on the order page only indicate the deduction amount from platform marketing tools redeemed by the consumer (e.g., if a consumer uses a $5 coupon, it does not mean you actually pay a $5 fee).

9. What are the details about the Bonus program?

Bonus is a customer facing program fully funded by TikTok Shop. When customers make purchases on TikTok Shop, Points are automatically added to customers' accounts. Sellers in SP will have Bonus benefits on their products. Customers will also see C-end labels on PIDs. Bonus programs help improve exposure, conversion and GMV. See details here: Bonus Program Details/FAQs for Smart Promotion - External Facing/Bonus 项目详情/常见问题解答（对外）

10. If a seller participates in Smart Promotion, will all PIDs have a 'bonus' status and labels？

Sellers participating in CFP will have a bonus for all of their products with ASP $5+ and the PIDs are not blacklisted.

11. What is the Discount Rate Commitment?

• Sellers will receive a platform discount rate of at least 3.5% during non-campaign periods and 4.5% during campaign periods.
• Discount Rate Formula: Total platform-distributed Marketing Discounts / Seller GMV.
• Eligibility: Non-blacklisted product orders with 3BD fulfillment (delivered within three working days after payment).

*What is blacklisted product order: Includes both seller-managed blacklisting and platform governance blacklisting.

*Platform governance blacklisting rules include both shop-level and product-level rules. (1) Shop-level rules：Violating the Platform Safety and Compliance Standards、Failing to meet the Shop Performance Score (SPS) requirements、Failing to meet the Account Health Rating (AHR) requirements、Violating the following platform baseline rules: Seller Negative Account Balance Requirements Fraudulent Order Prevention Requirements Temporary Account Restriction Requirements、Failing to meet the Fulfillment Policy、Engaging in violations such as low-quality mass listings or store network arbitrage. For details, please refer to Seller Enforcement Policy (2) Product-level rules：The product is not in an active 'on-sale' status, or has violated the following platform rules: Prohibited Products Policy、Product Safety And Compliance Policy、Intellectual Property Policy.

• Compensation: If the commitment is not met, the difference will be automatically compensated via Ad Credits within 30 working days after the cycle ends.
• Notes:
  • If the seller receives an SP fee waiver during the same period, the committed discount rate will be reduced proportionally;
  • If sellers block promotion tools in the seller center, we will be unable to provide discounts to the products successfully, which means the discount rate cannot be guaranteed;
  • If sellers opt out of SP (determined by status on the last day of the month), the Discount Rate Guarantee for the current month will become invalid, and no compensation will be provided.

III. Data Monitoring and Metric Definitions

1. What data metrics can I view?

You can log in to Seller Center -> Marketing -> Smart Promotion to view the SP program dashboard. The dashboard includes three modules: actual fee rate, program performance, and discount overview & details.

• Actual fee rate: View your currently effective fee rate in real time.
• Program value summary: Check how much of your store GMV is contributed by SP, as well as how many new customers and new orders SP has brought to your store.
• Discount overview & details: Check the total amount of coupons, product incentives, and bonus your store has received. You can also click each module to view details by marketing tool or by order.

2. How can I understand the investment and return of ads, creators, and Smart Promotion?

One single order can be jointly driven by ads, creators, and Smart Promotion; so it may be attributed to all three tools. This does not mean the seller is investing repeatedly. Instead, each tool plays a different role in the customer journey:

• Creators are responsible for content seeding and traffic referral. Purchases made after users click creator links are counted as creator GMV.
• Ads are responsible for amplifying exposure. All paid and organic orders for the products you chose for your campaign will be attributed to ads while the campaign is running.
• Smart Promotion drives conversion directly by distributing discount resources. Thus, it counts orders that receive SP discount resources.

Together, ads, creators, and Smart Promotion work in synergy to help sellers maximize store performance.