Why aim for a price 4 times your landed cost on TikTok Shop
A product bought for 10 and sold for 20 looks profitable. On TikTok Shop, after the platform fee, an affiliate creator, returns, samples and taxes, it barely is. Our working rule: a selling price at least 4 times the landed cost. Here are the numbers behind it.
The tables that explain it
🇺🇸 United States
Product sold for $40 (sales tax added at checkout, collected by TikTok), referral fee 6%, affiliate creator 15%:
| Per sale | Cost $10 (4x) | Cost $16 (2.5x) | Cost $20 (2x) |
|---|---|---|---|
| Referral fee, 6% | 2.40 | 2.40 | 2.40 |
| Affiliate creator, 15% | 6.00 | 6.00 | 6.00 |
| Left before returns, ads and taxes | 21.60 | 15.60 | 11.60 |
The money left still pays for returns, samples, ads, and your income and self-employment taxes.
🇬🇧 United Kingdom
Product sold for £40 including VAT (VAT-registered seller), commission 9% of the total including VAT, creator 15% of the price before VAT:
| Per sale | Cost £10 (4x) | Cost £16 (2.5x) | Cost £20 (2x) |
|---|---|---|---|
| VAT included, 20% | 6.67 | 6.67 | 6.67 |
| TikTok Shop commission, 9% | 3.60 | 3.60 | 3.60 |
| Affiliate creator, 15% before VAT | 5.00 | 5.00 | 5.00 |
| Left before returns, ads and taxes | 14.73 | 8.73 | 4.73 |
Our method
US: 6% on most categories per TikTok's official table (5% for some jewelry and pre-owned); some sellers report 8% since August 2026, unconfirmed. UK: 9% including VAT, lower for new sellers and some electronics and beauty categories. The creator rate is an example: use your own.
The three verdicts
| Ratio | Verdict | What you do |
|---|---|---|
| 4x or more | GO | Move on to the other filters |
| 2.5x to 4x | RISKY | Renegotiate the cost, raise the price or skip affiliates |
| Under 2.5x | NO-GO | Change product |
The landed cost trap
The landed cost isn't the purchase price. It includes freight to your stock, customs duties and import VAT if you import (the US no longer exempts small parcels from duties), packaging, shipping to the customer and an allowance for returns. Without these lines, your 4x is wrong.
Key point
For an affiliate creator too, the rule matters: if the seller doesn't make enough, they cut your commission or stop.
Test your product with three numbers:
Manifeste free
What for: Our free margin calculator for TikTok Shop, Amazon, Etsy, eBay or your own store: price, landed cost, delivery time. GO, RISKY or NO-GO verdict with a full analysis.
When: Before you buy any stock or promote any product.
Open ManifesteFAQ
What is the 4x ratio?
The selling price divided by the landed cost (everything it costs to get the product to the customer). A product sold for 40 that costs you 10 delivered has a 4x ratio.
Is 3x enough?
That's the RISKY zone (2.5x to 4x): possible without affiliate commission and with few returns, but the margin is fragile.
Is the 4x rule official?
No. It's our working rule, from our tests. It helps you avoid mistakes; it guarantees no sales.
Official sources
From reading to doing
The Double Éveil course is free: short missions with a checklist and a quiz at each step. Adults (18+) only.
Our method: this lesson relies on TikTok Shop's official pages and public guidance, checked on the dates shown. Rules change: Seller Center and the TikTok app are the final word. This is neither legal nor tax advice, and no earnings are promised. Some links are affiliate links, always labelled: if you subscribe through them, you pay nothing extra and we earn a commission.