TikTok Shop has become one of the fastest-growing e-commerce platforms, offering sellers a unique way to reach customers through short videos and live selling. However, like any online marketplace, selling on TikTok Shop comes with costs.

In this article, we'll break down the two main types of fees you need to be aware of in 2025: Commission Fees and Transaction Fees. Understanding these charges will help you plan your pricing strategy and maximise profits.

The Commission Fee is a percentage-based charge that TikTok Shop deducts from every completed sale. This fee is calculated based only on the item price and does not include shipping costs and TikTok Shop platform discounts. The commission rate depends on the type of store you have. Starting September 5th, 2024, Malaysia time, the updated commission fee structure will be in effect.
 

The formula for calculating the commission fee is as follows: Commission Fee = (Item Price - Seller Discount) * Fee Rate

Here's an example of how the commission fee works on TikTok Shop for a seller who sells gold jewelry:

Scenario:

• Item Price: RM500 (for a gold jewellery piece)

• Seller Discount: RM50

• Final Item Price after Discount: RM450

• Commission Fee Rate: 8.10% (for a Marketplace seller)
   

Calculation of Commission Fee:

1. Final Item Price after Discount: RM450

2. Commission Fee Rate: 8.10%

3. Commission Fee Charged: RM450 x 8.10% = RM36.45
    

So, after the sale of this item, TikTok Shop will deduct RM36.45 as the commission fee, based on the final price after the seller's discount.
 

What is the Transaction Fee on TikTok Shop?

The Transaction Fee is a service charge applied to all successful orders to cover payment processing costs. It is deducted from the final order settlement, including the total payment made by the customer after shipping fees. Starting from September 5th, 2024, Malaysia time, the updated transaction fee rate of 3.78% (SST inclusive) will apply.
 

How is the Transaction Fee Calculated?

Let’s break it down with an example:

Example 1: Successful Order

• Item Price (After Discount): RM500

• Customer Shipping Fee: RM60

• Customer Payment: RM560

• Transaction Fee Rate: 3.78%

• Transaction Fee Charged: RM560 x 3.78% = RM21.17
   

Example 2: Partial Refund Scenario

• Original Customer Payment: RM560

• Partial Refund Requested: RM200

• Revised Customer Payment: RM360

• Transaction Fee Charged: RM360 x 3.78% = RM13.61

If the entire order is refunded, the transaction fee is also refunded to the seller.
 

How TikTok Shop Fees Impact Your Profitability

Both the Commission Fee and Transaction Fee directly impact your earnings. To maintain profitability, sellers should:

• Price products strategically, factoring in both fees.

• Use seller discounts wisely to attract customers without eating into profits.

• Encourage bulk purchases to maximise order value and minimise per-item fee impact.

• Leverage TikTok’s promotional tools (e.g., flash sales and live streams) to drive more sales and cover platform costs.
   

Managing TikTok Shop Fees Efficiently with BigSeller

Managing fees and keeping track of your payouts can be frustrating, especially when you're handling a high number of orders. You want to be sure you're actually getting the right amount after commissions, transaction fees, and other deductions. Now, with BigSeller’s Payment Reconciliation feature, you can get a clearer picture and organised view of your earnings.
 

Here’s what it does:

• Verify Released Income: Sellers can check if TikTok Shop has released payments for completed orders. If an order remains unsettled after 24 hours, it will be flagged for further review.

• Track Fee Deductions: Get a breakdown of what’s being deducted from each order, so you always know where your money is going.

• Identify Payment Discrepancies: Compare the amount you expect to receive with the actual payout to quickly spot any issues or miscalculations.

• Export Financial Reports: Generate and download structured income and fee reports for accurate bookkeeping and profit analysis.

Selling on TikTok Shop comes with its share of costs, but understanding how commission and transaction fees work can help you stay ahead. By factoring these fees into your pricing strategy and making informed decisions, you can keep your business profitable without surprises.

For even better control over your finances, BigSeller’s Finance Report gives you a clear breakdown of your earnings and deductions, ensuring you get what you’re owed.

Stay on top of your TikTok Shop earnings with BigSeller. Try it now and keep your profits in check!

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