Most sellers price by adding a markup to cost and hoping fees don't eat it. On TikTok Shop that rarely works, because some fees are percentages of the price and some are flat per order. The reliable way is to start from the margin you want and solve for the price.
The formula
Split your costs into two groups:
- Fixed costs per order (F): product cost, your shipping cost, packaging, and flat platform fees such as the RM0.54 Platform Support Fee (Malaysia) or the ₱5 Order Processing Fee (Philippines).
- Percentage fees (v): commission, transaction fee and any other fee charged as a percentage of the price, plus affiliate commission if you use creators.
If m is your target margin as a share of the price, then:
Price = F ÷ (1 − v − m)
For example, with 18% percentage fees and a 25% target margin, divide your fixed costs by 0.57. If v + m reaches 100%, no price works: you need to lower costs, fees or your target.
Example: Malaysia
A women's top costing RM20, non-BXP Marketplace, from 31 October 2026. Commission is 14.91% and the transaction fee 3.78%, so v = 18.69%. F = RM20 + RM0.54 = RM20.54. For a 25% margin:
Price = 20.54 ÷ (1 − 0.1869 − 0.25) ≈ RM36.48. Check in the calculator: fees RM7.36, profit RM9.12, margin 25.0%.
Add a 10% creator commission and the price for the same margin rises to RM44.35 (margin 25.0%). Creator commission is often the biggest single lever on price.
Example: Philippines
A ₱200 womenswear item, Marketplace. Percentage fees: 7.3% commission + 2.24% transaction + 5.5% Shipping Service Fee + 1.5% Seller Growth Fee = 16.54%. F = ₱200 + ₱5 = ₱205.
Price = 205 ÷ (1 − 0.1654 − 0.25) ≈ ₱350.67, giving fees of ₱63.01 and a 25.0% margin. This works while the Shipping Service Fee stays under its ₱100 per item cap; above that, treat it as a fixed ₱100.
Example: United States
An item costing $8 with a $4 shipping label, buyer pays no shipping, 6% referral fee. Price = 12 ÷ (1 − 0.06 − 0.25) ≈ $17.39, for a referral fee of $1.04 and a 25.0% margin.
Common pitfalls
- Margin vs markup. A 25% margin is profit equal to 25% of the price. It is a 33% markup on cost-plus-fees. Mixing them up is the most common pricing mistake.
- Discounts change the base. Seller-funded discounts reduce the price the percentages apply to, but your fixed costs stay. Solve the formula at the discounted price you actually expect to sell at.
- Campaign fees. In Malaysia, BXP sellers pay 7.02% instead of 4.86% on campaign days. Price your campaign offers with the campaign rate.
- Returns. Some flat fees aren't refunded on returns after delivery (the Malaysian Platform Support Fee and the Philippine Order Processing Fee). If your return rate is high, add a return allowance to F.
Use the Malaysia, Philippines or US calculator to check any price you get from the formula.
Official sources
Rates verified:
- 01Commission Fee & Seller Fees Calculations — TikTok Shop MY Seller University (updated 16 Oct 2026)
- 02Transaction Fee — TikTok Shop MY Seller University
- 03Platform Support Fee — TikTok Shop MY Seller University
- 04Introduction to Seller Fees — TikTok Shop PH Seller University (updated 13 Oct 2026)
- 05Platform Commission Fee — TikTok Shop PH Seller University
- 06[Philippines] Order Processing Fee — TikTok Shop Academy (18 Aug 2026)
- 07TikTok Shop Referral Fees by Category — TikTok Shop US Seller University (revised 8 Oct 2026)
Spotted a rate that looks wrong? Report it on GitHub and we'll re-check it against the official page.