13 Weeks·USD
Per-Order Unit Economics (Based on $35 AOV)
Your Starting PointProduct Foundation
$35
Selling Price
−
$12
Product Cost
=
$24
Gross Profit
COGS: $11+Packaging: $1
67.1%
gross margin
$35
Revenue100%
$24
After Product Costs67%
High gross margin ≠ profitable on TikTok Shop
TikTok's TakePlatform & Payment Fees
$3
Platform Takes
→
$32
You Keep
TikTok: $2 (6%)+Payments: $1
59.1%
margin remaining
$35
Revenue100%
$32
After Platform Fees92%
Platform fees shrink your profit by 8.0%
Creator Payouts18% Affiliate Rate
$6
Creator Cut
→
$14
You Keep
Commission: $6 (18%)
41.1%
margin remaining
$21
Before Commission59%
$14
After Creators Paid41%
Commission eats 27% of gross profit
Getting It ThereFulfillment & Delivery
$7
Logistics Cost
→
$7
Net Per Order
Fulfillment: $3+Shipping: $4
21.1%
net margin per order
$14
Before Fulfillment41%
$7
Net Per Order21%
Healthy net per-order margin