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TikTok Shop UK – Seller Fees Explained

3 min read

​​Selling on TikTok Shop UK provides strong visibility and fast-growing sales. But to protect your margins, you need a clear understanding of seller fees.

This guide explains how TikTok Shop fees work in the UK. You’ll learn how commissions are calculated and what incentives may reduce your costs.

What is the TikTok Shop commission fee? #

The commission is the main fee TikTok charges sellers for each completed order. It’s calculated as a percentage of the total transaction value, including VAT.

  • Standard commission rate: 9% (inclusive of VAT);
  • Applies to most product categories;
  • Covers the use of TikTok Shop’s platform and services.

How is the commission calculated? #

The TikTok Shop commission isn't just based on the item’s price. It also includes shipping fees paid by the buyer and platform-funded discounts.

Commission fee formula:

  • Commission Fee = ((Net Sales + Buyer-paid Shipping Fee + Platform Discount) – (Net Sales Refund + Platform Discount Refund)) × Commission Rate

Real-life examples #

Example 1: One product #

  • Item: Pair of Shoes;
  • Original price: £100;
  • Seller discount: £10;
  • Platform discount: £10;
  • Customer-paid shipping fee: £5;
  • Category commission rate: 9%.

Calculation:

  • Net sales: £80;
  • Total relevant value: £80 (Net Sales) + £5 (Shipping) + £10 (Platform Discount) = £95;
  • Commission fee: 9% of £95 = £8.55.

Example 2: Two products from different categories #

  • Item 1: Shoes (£100, 9% commission);
  • Item 2: Computer (£1500, 5% commission);
  • Discounts/Shipping:
    • Shoes: £10 seller, £10 platform, £5 shipping;
    • Computer: £0 seller, £200 platform, £50 shipping.

Calculations:

  • Shoes: Net sales = £80, Total Value = £95 -> Fee = £8.55;
  • Computer: Net sales = £1300, Total Value = £1550 -> Fee = £77.50;
  • Total commission fee: £86.05.

Commission fee reductions: Who can pay less? #

TikTok Shop UK offers several commission reduction options. Eligibility depends on the product category and on active incentive programs.

Category-level commission reductions #

Certain products in the Electronics and Beauty & Personal Care categories are charged a 5% commission fee instead of the standard 9%.

How category-level reductions work:

  • The reduced rate applies automatically based on product-level categorisation.
  • Only products listed in eligible categories qualify for the lower commission.
  • If a product is incorrectly categorised and later reclassified during TikTok Shop’s review process, the reduced rate no longer applies.
  • If a seller offers products from both eligible and non-eligible categories, only eligible products receive the reduced commission.

Other commission reduction incentives #

Beyond category-based discounts, TikTok Shop may offer temporary commission reductions. These usually come through seller missions, incentive programs, or promotional campaigns.

What to keep in mind?

  • Commission reductions are not guaranteed and depend on availability.
  • Eligibility rules and discount rates may change without prior notice.
  • All active incentives are managed directly in the Seller Centre.

Other fees and policy notes #

In addition to TikTok Shop fees, UK-related to commissions, sellers should be aware of:

  • Adjustments for order refunds or returns;
  • Future policy changes (TikTok may update fees with prior notice);
  • Responsibility to regularly check official policies and terms.

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