Smart Promotion Program

Important note: Co-funded Promotion was replaced by Smart Promotion program on March 3, 2026. Smart Promotion is a resource package launched by TikTok Shop, where the platform provides resources such as promotional subsidies (such as direct discounts, coupons, and free shipping vouchers, and Bonus - details below), eligibility to register campaigns and Shoptab events, exposures to maximize the return on investment for merchants. On March 3, 2026, the Smart Promotion replaced the Co-funded Promotion.

Benefits of joining Smart Promotion Program

🧮 Transparent fee structure: Simple, predictable 3.5% of shop GMV fees so you can budget with confidence. (An additional 1% fee will be added during campaign period starting from April)
💰 Guaranteed ROI: For every $1 you invest through our Smart Promotion Program, you'll earn at least $5 in GMV in any calendar month at shop level, guaranteed through March 31, 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.

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 (FAQs)

• 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.
• How does Smart Promotion work? TikTok Shop utilizes advanced algorithms to allocate promotional investments aimed at maximizing GMV and ROI. Performance metrics, including ROI, are updated daily to ensure transparency in spending effectiveness. The platform optimizes its strategies on a weekly basis, ensuring sustainable and effective performance. When a shop enrolls in Smart Promotion, the platform will charge a flat service fee which is 3.5% of shop GMV.
• 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 and opt in at any time.
• 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.
• Does the shop-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 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.
• 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? And is it always guaranteed? ROI is calculated as: GMV generated from Smart Promotion-subsidized orders ÷ the seller's actual contribution. We guarantee a 5x ROI for this program at shop level in any calendar month through March 31, 2026, with the following restricted conditions:
  • Your Shop Performance Score (SPS) must be 3.5 or above in related calendar month.
  • The customer experience metrics (which includes but not limited to logistics, product quality, and service) must be above the industry average.
  • You should not opt out product incentives promotion.
• 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.
• What are the details about the Bonus program? It's 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）
• 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.
• How to resolve the overlap issue between conversions from GMV Max and Smart Promotion?
  • The CFP calculation logic excludes organic traffic and only counts orders that have actually received Smart Promotion subsidies based on settlement attribution.
  • The same order can be targeted by both GMV Max and the SP program. However, GMV Max primarily focuses on traffic acquisition. By supplementing GMV Max with the SP program, we can drive conversion rates, enhance GMV, and increase order volume.