Smart Promotion Program

01/29/2026

Promotion Tools

Summary

What is the Smart Promotion Program on TikTok Shop, and what benefits does it offer to sellers?

The Smart Promotion Program, launching Jan 20, 2026, replaces Co-funded Promotion, using TikTok’s algorithms to co-invest in marketing, guaranteeing a 5x ROI and driving GMV growth (+70% during Black Friday). Benefits include simplified 3.5% fees, automatic points rewards, enhanced product exposure, and time savings.

What are the eligibility criteria and enrollment requirements for sellers to join the Smart Promotion Program?

Sellers must have a Shop Performance Score (SPS) of at least 3.5 to enroll. Enrollment is mandatory from March 2026 to participate in campaigns, Flash Sales, or Premium Offers. Eligible sellers see the program option in Seller Center and can opt in/out anytime.

How does TikTok Shop manage promotional activities and fees under the Smart Promotion Program?

TikTok allocates promotional funds via advanced algorithms to maximize GMV and ROI, updating performance metrics daily. Sellers pay a fixed 3.5% fee on store-wide GMV (plus 1% during campaigns), with no budget caps. Fees appear as “Smart Promotion Program Fee” in settlements.

Can sellers exclude specific products from the Smart Promotion Program promotions, and how does product blacklisting affect fees and subsidies?

Yes, sellers can exclude products by contacting their Account Manager. Blacklisted products do not receive subsidies but can still participate in campaigns and marketplace activities. Removing products from the blacklist restores subsidies without increasing the overall fee rate.

What are the key features and conditions of the free trial for the Co-funded Promotion, and how does it transition to the Smart Promotion Program?

The 7-day free trial (ending Aug 26, 2025) covers 100% of promotion costs, offering risk-free experience with guaranteed 5x ROI. Trial features match the official program. After the trial, costs are shared. Sellers can withdraw anytime but cannot reuse the trial if they quit early. The trial auto-converts to the formal program unless withdrawn.

Show moreShow less

Co-funded Promotion will be upgraded to Smart Promotion Program starting January 20, 2026. We included a Smart Promotion Promotion FAQ at the bottom of this page to help you learn more. Co-funded Promotion is a TikTok Shop program where both TikTok Shop and sellers contribute marketing funds, and TikTok strategically allocates these funds across promotional activities like product coupons and new customer discounts. The platform manages all investment in this Program, aiming to maximize sellers' ROI with the support of advanced algorithms. TikTok Shop currently guarantees a ROI of 5x.

Benefits of joining Smart Promotion Program

🔑 Campaign registration: Expected from March, Enrollment in the Smart Promotion Program is required to participate in all future campaigns. You must also be enrolled in Smart Promotion to run Flash Sales or Premium Offers in the Shop Tab.

📈 GMV growth: Program subsidies help drive GMV growth. During Black Friday, sellers who participated in the program saw a +70% GMV increase compared to non-participating sellers.

💸 Points rewards benefit with 'Bonus' labeling: Fully funded by TikTok Shop, points rewards are automatically added to all products in your store, improving conversion and repeat purchase rates.

🧮 Transparent fee structure: Simple, predictable 3.5% fees so you can budget with confidence. (An additional 1% fee will be added during campaign period)

💰 Guaranteed ROI: For every $1 you invest through our Smart Promotion Program, you'll earn at least $5 in GMV, guaranteed through February 28, 2026.

📣 Enhance product exposure: Shoppers are greeted with coupons via pop-up messages and surprise placements on product pages.

🚀 Drive customer growth: Reach new and existing shoppers with targeted promotions designed to increase engagement and GMV.

🛠️ Save time and effort: We handle the entire process, from strategy and execution, to reporting, so you can focus on creating content and engaging with your shoppers.

What are the enrollment criteria？

Your Shop Performance Score (SPS) must be at least 3.5 to join the program. Eligible sellers will see the program option in their Seller Center.

Frequently asked questions (Co-funded Promotion)

How does Co-funded Promotion work?

Once registered, TikTok Shop uses advanced algorithms to strategically allocate promotional investments, aiming to maximize GMV and ROI. Performance metrics, including ROI, are updated daily to provide transparency on spending effectiveness. Estimated budgets are updated monthly based on prior data. Co-funded Promotion guarantees a minimum ROI of 5x within a calendar month.

How to opt in/out for Co-funded Promotion

How to opt in?

Go to Marketing > TikTok-funded program > Co-funded promotion > Click "Start free trial" to join

How to opt out?

Go to Marketing > TikTok-funded program > Co-funded Promotion > Manage program

Click "Withdraw"

Fill in "Reason for withdrawal"

How to re-register?

Go to Marketing > TikTok-funded program > Co-funded Promotion > Re-register

How will TikTok Shop decide what promotional activities to run?

TikTok Shop uses an algorithm-driven approach to strategically allocate investments, aiming to maximize GMV and promise a ROI of 5x. Participating sellers authorize TikTok Shop to decide and execute promotional spending on their behalf, with ROI estimates updated daily to track performance.

How long can I stay on this program?

Once you have successfully registered, you will stay on this program as long as you want. Your Shop Performance Score (SPS) must be at least 3.5 to join the program.

Can I withdraw from the program?

Yes, you can withdraw at any time. Just go to "Manage your programs" and click the withdraw button. Once you unregister, all promotional activities will stop immediately. If you wish to register for this program again in the future, you will need to do so manually by going to Marketing > TikTok-funded program > Co-funded Promotion > Re-register.

Can I exclude specific products from promotional activities?

Yes, you can. To exclude specific products from promotional activities, please contact your account manager. They will assist you in identifying and managing the products you wish to exclude from promotions.

How much will TikTok Shop co-fund the activities?

This is determined by the actual performance. TikTok Shop guarantees a ROI of 5x and will provide performance metrics such as seller ROI, GMV and new customers.

Where and when will I see my monthly estimated cost?

Estimated spending updates are available on the Co-fund Program registration page at the start of each month, based on the prior month's performance and ROI data.

How do you estimate the amount spent on me?

The estimated amount spent is based on historical data from the previous month and your business goals. This estimation process takes into account both past performance and the available subsidies and resources from the platform, which are designed to help increase your GMV with a minimum ROI of 5x after registering in the program.

What performance metrics can I see?

You can monitor performance on the program detail page in the Seller Center. We will provide daily updates on GMV, Order Acquired, New Customer Acquired, Seller Accumulated Spend, and Seller ROI.

Do I need to deposit money to register for this program?

No, no upfront deposit is required. TikTok Shop funds promotional activities initially, and sellers' co-funds are settled during standard payment cycles, typically 1–8 days post-delivery. Spending appears as "Co-funded promotion service fee" in statements.

FAQ regarding the free trial

FAQ Classification	Question	Answers
Function and Rules	What features are included in the "Free Trial"?	The functions during the trial period are the same as those of the official version. The platform will improve the conversion rate of your shop and increase the GMV by offering coupons and product subsidies. You can see the data tracking on the project details page.
	When does the free trial expire?	The 7-day free trial will end on August 26, 2025. During the free trial, TikTok Shop will cover 100% of your Seller Center Co-funded Promotion costs, giving you a risk-free opportunity to experience a minimum 5X return on investment. After the trial, costs will be shared between you and TikTok Shop. You can opt out at any time, even during the trial. To opt out, click here to enter the CFP page and click Withdraw.
	If I quit during the trial period before using up all 7 days, can I continue using the remaining trial days if I rejoin later?	No, you can't. The trial is a special benefit for merchants who have not signed up for the project. If you withdraw halfway, you will not be able to obtain the free trial right for the second time.
Fees and Rights	Will the free trial automatically convert to a formal program?	Yes, but you don't have to worry. After the free trial starts, you can see the remaining trial days in the Seller Center. And whether it is during the trial period or the formal program period, if you are not satisfied with the program performance, you can withdraw at any time.
Fees and Rights	Are there any restrictions or hidden fees during the free trial period?	There are no hidden fees. The entire trial period is completely free.
Performance Tracking and Evaluation	What performance data can I see during the free trial period?	We will provide performance tracking including GMV, Order Acquired, New Customer Acquired, Seller Accumulated Spend, and Seller ROI.

NEW: Frequently asked questions (Smart Promotion Program)

What are the eligibility requirements to participate?

Your Shop Performance Score (SPS) must be ≥3.5 to join the program. Eligible sellers will see the program option in Seller Center.

How does Smart Promotion Program work?

After enrollment, TikTok Shop uses advanced algorithms to allocate promotional investment with the goal of maximizing GMV and ROI. Performance metrics, including ROI, are updated daily to provide transparency into spending effectiveness.

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, your SPS must remain ≥3.5.

Can I opt out of the program at any time?

Yes, you may opt out at any time. However, if you leave Smart Promotion Program, you will no longer be eligible for the benefits mentioned above, such as eligibility to register for promotional campaigns.

Is participation in Smart Promotion required to register for campaigns?

Expected from March, sellers must be enrolled in the Smart Promotion Program to register for any campaigns, not only SS- or S-level campaigns. If a seller opts out of Smart Promotion Program while participating in a campaign, they will be automatically removed from the campaign.

Can I exclude specific products from promotional activities?

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.

If I'm currently in Co-funded Promotion, how do I switch to Smart Promotion?

Yes. Please fill out this short survey to convert to Smart Promotion.

Does the store-wide GMV fee include products previously exempted or blacklisted from subsidies? Can those products still receive subsidies?

The fee is calculated based on store-wide order GMV, regardless of whether individual products participate in Smart Promotion Program or are on the subsidy blacklist. Products exempted during or after the CFP period are not eligible for platform subsidies. If a seller wishes to restore previously exempted product IDs (PIDs), they must contact their Account Manager for submission.

Will removing products from the subsidy blacklist increase the fee rate?

No. Products removed from the subsidy blacklist will automatically begin receiving Smart Promotion Program subsidies. The overall fee rate remains unchanged at 3.5% of store-wide GMV. For sellers, this results in incremental revenue with no additional cost.

Can sellers set a budget cap?

No. The program charges a fixed 3.5% of total store GMV, and budget caps are not supported.

How is the fee reflected in order settlement?

Order settlement details will include a line item labeled "Smart Promotion Program Fee". A 3.5% GMV fee is applied to each order.

How is ROI calculated?

ROI is calculated as:

GMV generated from Smart Promotion-subsidized orders ÷ the seller's actual contribution.

Through February 28, 2026, the platform guarantees an ROI greater than 5X.

Is the 3.5% GMV fee calculated based on pre-coupon or post-coupon price?

The fee is not calculated purely on pre-coupon or post-coupon price. Instead, it is based on the price after seller-funded discounts but before platform subsidies, consistent with the GMV base used for platform commission calculations.