TikTok Shop Referral Fee Updates - 2024

Summary

What are the key changes to TikTok Shop's referral fees starting April 1, 2024?

  • The referral fee on all qualified transactions will increase to 6% per order.
  • New sellers on promotional plans will continue with their current plans until the promotional period ends.

How is the Refund Administration Fee structured, and what are the new rules starting May 15, 2025?

  • The Refund Administration Fee is 20% of the referral fee, capped at $5 per SKU.
  • No fee is charged for refunds on "Buy now refund later" creator sample orders or if the refund is initiated before shipping and meets auto-cancel criteria.

What are the settlement period rules for TikTok Shop sellers?

  • Orders are settled after delivery and if no refund or return request is made.
  • Payments are made to the seller's bank account once the settlement threshold of $1 USD is met.

How is the referral fee calculated for different order scenarios?

  • The referral fee is calculated as 6% of (Customer Payment + Platform Discount - Tax).
  • Refund Administration Fee is calculated at the SKU level and capped at $5 per SKU.
TikTok may modify this Article from time to time, in which case TikTok will update the “Last Revised” date at the top of this Article. If TikTok makes material changes to this Article, TikTok will use reasonable efforts to notify you, such as by email or notifications in your User Account, 30 days before the changes take effect. However, it is your sole responsibility to review this Article from time to time to stay apprised of all updates.
Updates to Referral Fees in 2024TikTok Shop charges a fee from sellers on all qualified transactions. This policy document defines such a fee as a "referral" fee which encompasses all TikTok Shop fees, with the exception of shipping and tax fees.
Starting April 1, 2024, TikTok Shop will increase the referral fee on all qualified transactions to 6% per order.
All new sellers enrolled in promotional plans will continue on their respective plans until the conclusion of the promotional period.
These changes are designed to allow us to better serve customers while ensuring that we continue to provide great value.
For more details on Referral Fees at the category level, please check out:
Category Level - Referral RatesDefinitions
  • Qualified Orders: Orders that have been completed are eligible orders. The baseline GMV used for the calculation will be referred to as Buyer Paid + Platform Discount - Tax.
  • Referral Fee: The fee that TikTok Shop charges and collects on all completed orders.
Refunds and Returns
Customers can request a cancel/return/refund request through the Orders section within the TikTok App. The request can only be made if the order falls within the return period. If a refund, return, or cancellation occurs after the customer successfully places an order, TikTok Shop will refund the referral fee amount for the product(s), minus the appropriate "Refund Administration Fee," which is 20% of the referral fee.
Starting from May 15, 2025, TikTok Shop updated its Refund Administration Fee rules, as follows:
Below are hypothetical scenarios illustrating how the Refund Administration Fee would be calculated:
  1. For each refund, the maximum "Refund Administration Fee" for each SKU type is capped at $5.
ScenarioOrder informationHow much is the Refund Administration Fee (capped at $5)How is it calculatedNote
AOne order that contains one SKU that costs $10$0.12$10*6%*20%
BOne order that contains one SKU that costs $500$5$500*6%*20% = $6, reduced to $5 because of the fee capRefund Administration Fee is capped at $5.
COne order contains one product, which has 2 SKUs, each priced at $10.$0.24($10*6%*20%)*2Since two SKUs are being returned and the Refund Administration Fee is calculated at the SKU level, we will multiply Scenario A fee by 2
DOne order that contains one product that has 2 SKUs. SKU A costs $500. SKU B costs $10. $5.12SKU A: ($500*6%*20%) = $6, reduced to $5 because of the fee capSKU B: ($10*6%*20%) = $0.12Because the Refund Administration Fee is calculated at the SKU level, we will apply the fee to each SKU individually in this case. For SKU A, the refund fee is $5 instead of $6 because the fee is capped at $5.
  1. Refunds for Creator Sample Orders: For "Buy now refund later" creator sample orders, no Refund Administration Fee will be charged when processing refunds.
  2. If a refund is initiated by the buyer before the order is shipped and meets the Auto-canceling criteria, no "Refund Administration Fee" will be charged.
Settlement Settlement Period RulesTikTok Shop will settle the order amount with sellers after the order is delivered to the customer and if no processing refund or return request for that order has been made. Payments will be automatically made to the seller's bank account after the Settlement Period Rules and threshold for payment are met, which is $1 USD. Further information on Settlement guidelines can be found in Seller Center.
Referral Fees
Fee typeDescriptionCalculation formula (Effective April 1, 2024)
Referral FeeReferral Fee is a service fee charged on successfully paid and delivered orders in TikTok Shop. Referral Fee =Referral Fee = Referral Fee Rate % *(Customer Payment + Platform Discount - Tax)
ExamplesSample computation - Referral Fee (effective April 1, 2024)
Referral fee effective April 1, 2024
Successfully placed order
Partially refunded order
Fully refunded order
Customer Payment
$102
$102
$102
Customer Refund
/
-$51
-$102
Platform Discounts
$5
$5
$5
Platform Discounts Refunds
/
-$2.5
-$5
Sales tax payment + Retail delivery fee payment
$2
$2
$2
Sales tax refund + Retail delivery fee refund
/
-$1
-$2
Referral fee rate
5%-6% based on the category
Referral fee calculation
Referral Fee Rate % *(Customer Payment + Platform Discount - Tax)
Referral fee
6%*($102+$5-$2)=$6.30
6%*($102-$51+$5-$2.5-$2+$1)=$3.15
$0
Refund administration fee
/
$6.30*50%*20%=$0.63
$6.30*20%=$1.26