How Fulfilled by TikTok (FBT) Helps Sellers avoid Slow Dispatch Penalties

Fulfillment

Summary

What is the slow-effectiveness governance strategy on TikTok Shop and how does it impact sellers?

  • It is a fulfillment control mechanism that penalizes sellers whose order shipments exceed the platform’s SLA thresholds, imposing order volume restrictions and settlement delays to improve fulfillment efficiency and consumer experience.

How can sellers avoid penalties under the slow-effectiveness governance strategy through FBT penetration rate?

  • Sellers who meet or exceed the platform’s required FBT (Fulfilled by TikTok) penetration rate during the assessment period are exempt from slow delivery penalties; false warehousing that inflates estimated rates without actual fulfillment still results in penalties.

How is the FBT penetration rate calculated and what targets must sellers meet?

  • Actual penetration rate = (FBT-fulfilled sub-orders in last 7 days) ÷ (total sub-orders excluding samples and cross-border). Estimated penetration rate forecasts next 30 days based on sales and inventory. Targets vary by seller type and product category.

What are the key steps for sellers to join and use FBT to improve fulfillment performance?

  • Sellers join FBT via Seller Center, select products to warehouse, create an FBT Inbound Receipt with product and packing info, and manage inventory to meet penetration targets. Detailed guidance is available in the FBT Inbound Receipt Creation Guide link.

What is the slow-effectiveness governance strategy?

The slow delivery governance strategy is a fulfillment control mechanism launched by the platform to address the issue of sellers' untimely order fulfillment. When the proportion of orders that exceed the platform's SLA requirements from "to be shipped" to "in transit" within the assessment period exceeds the threshold, the platform will impose penalty measures such as order volume restrictions and settlement delays. The core objective is to comprehensively improve fulfillment efficiency and consumer experience. Learn more

The relationship between FBT penetration rate and slow-aging strategy exemption

Sellers can use FBT and meet the usage penetration rate to avoid penalties for slow delivery strategies: if the actual or estimated penetration rate of FBT by merchants reaches the target value during the assessment period, they can be exempted from penalties for slow delivery (if a merchant's false warehousing results in the estimated penetration rate meeting the standard while the actual penetration rate fails to meet the standard, they will still face penalties).

2.1 Definition and Calculation Formula of FBT Penetration Rate

(1) Actual permeability:

Time range: last 7 days
Calculation formula:
  • Numerator: Number of sub-orders fulfilled using FBT
  • Denominator: The total number of sub-orders of the seller's store
  • Special Note: The numerator and denominator do not include creator sample orders or cross-border direct mail orders.

(2) Estimated Penetration Rate:

Time range: the next 30 days
Calculation formula:
  • Numerator: For SKUs of associated FBT goods, the number of sales sub-orders that can be generated within the next 30 days: the minimum value of the estimated number of sales sub-orders and the number of available sales inventory (the number of available sales inventory includes in-warehouse inventory and in-transit inventory within 30 days)
  • Denominator: Average daily number of sub-orders of the seller's store in the past 7 days * 30

(3) Example:

SKU①Projected Sales in the Next 30 Days②FBT In-Warehouse Inventory③FBT In-Transit Inventory in the Next 30 DaysProjected Available FBT Fulfillment Orders in the Next 30 Days (Take the minimum value of the ①、②+③ columns)Projected PenetrationRate
SKU A100502070
SKU B50208050
SKU C1500200150
SKU D100000
Total400--27067.5%

2.2 FBT Penetration Rate Target

When sellers achieve the FBT usage penetration rate required by the platform within the assessment period, they will be eligible for exemption from slow delivery governance; the target values vary for different seller types, and you can use the path below to view the store's target value.
Path 1 :Seller Center-Fulfilled by TikTok
imageimagePath 2 :FBT Merchant Portal - Analytics
Description:
  • Seller's whose business is not suitable for certain categories or whose store operations are poor have no penetration rate targets, and in this case, they cannot rely on FBT to be exempted from penalties.
  • Penetration rate targets may change due to alterations in the product categories sold. Please stay informed if there are any changes to the product categories sold.

How to join FBT and use FBT

Sellers need to click [Get started] in Seller Center - Fulfilled by TikTok to join FBT, then open the FBT Merchant Portal, select the products to be warehoused, create an FBT Inbound Receipt (IBR), and fill in product information, packing information, estimated arrival information at the warehouse, etc. The operation path and detailed steps can be viewed by jumping to the FBT Inbound Receipt Creation Guide: https://scm-us.tiktok.com/merchant-university/course-details/26860817670