Calculate your real TikTok Shop margin, line by line
Many sellers find out too late that they lose money on every order. The real margin fits in five lines. Calculating it before you launch, then again with real numbers after 20 orders, changes everything.
The five lines
- The selling price, and the tax it contains (UK VAT if you're registered; in the US, sales tax is added on top and handled by TikTok).
- TikTok Shop's fee: 6% on most US categories, 9% including VAT in the UK.
- The creator's commission if you turn on affiliates: a rate you set yourself.
- Your full landed cost: product, freight to your stock, customs duties and import VAT if any, packaging, shipping to the customer.
- An allowance for returns.
A full example
🇺🇸 United States
| Line | Amount |
|---|---|
| Selling price | $40.00 |
| – Referral fee 6% | – $2.40 |
| – Affiliate creator 15% | – $6.00 |
| – Full landed cost | – $10.00 |
| Margin before returns, ads and taxes | $21.60 |
That's 54% of the price, above our 20% threshold. Your income and self-employment taxes come out of it.
🇬🇧 United Kingdom
| Line | Amount |
|---|---|
| Selling price incl. VAT | £40.00 |
| – VAT 20% | – £6.67 |
| – TikTok Shop commission 9% | – £3.60 |
| – Affiliate creator 15% before VAT | – £5.00 |
| – Full landed cost | – £10.00 |
| Margin before returns, ads and taxes | £14.73 |
That's 37% of the price, above our 20% threshold.
Our method
The affiliate rate is an example. Your Seller Center shows your real fees.
Tracking after launch
Every week, write down:
| Week | Orders | Delivered on time | Cancellations | Returns | Net margin per order |
|---|---|---|---|---|---|
| 1 |
Our decision rules
- Affiliates: only if at least 20% of the price is left after the creator's commission.
- Stock: no more stock before 20 orders delivered without problems.
- Ads: none before you've measured your real margin over at least 20 orders.
- Stop: negative net margin over 10 orders, you stop that product.
Key point
These thresholds are our working rules, not laws. What matters is deciding with numbers rather than hope.
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 margin should I aim for on TikTok Shop?
Our working rule: at least 20% of the selling price must be left after the creator's commission, before returns and ads.
When should I stop a product?
Our rule: if your net margin after returns is negative over 10 orders, stop that product.
Should I count ads?
Yes if you run them. Our advice: no paid ads before you've measured your real margin over at least 20 orders.
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.