TikTok Shop Affiliate Commission and Payouts for Creators

This article will guide Creators on receiving their affiliate commission, and how creators can calculate, view and manage their earnings.
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What is Affiliate Commission?

Affiliate commission is the commission Creators get when they cooperate with sellers to promote products. Creators will receive a commission on every item sold through their content.

Calculation Rules

Commissions are calculated with the following formula:
Commission = actual paid price * the commission rate
  • In which: Actual paid price = product price - seller discounts - product tax
Note: The actual paid price may be lower than the product price seen in the store because the actual paid price is the price after tax and discounts.Creators will not receive commission if one of the following happens:
  • The customer cancels the order before receiving the shipment;
  • The customer refunds the order during the after-sales period.
  • The customer confirms receipt, but a partial refund occurs during the after-sales period. The creator then gets part of the commission.
  • The customer does not complete the order under the pretext of fraud

When will Creators receive Commission?

In accordance with the Creator Terms of Use, a creator will receive their commission right after the order is settled to the seller. As such, the payout of creator's commissions will depend on the settlement period type of the seller. There are three types of settlement periods that can be applied to a seller:
  1. Standard Settlement
Funds are settled 15 days after the product is delivered to the customer.
  1. Express Settlement
Funds are settled 3 days after the product is delivered to the customer.
  1. Deferred Settlement
Funds are settled 31 days after the product is delivered to the customer.
To learn more about Sellers' settlement periods, please refer to this Policy guide.
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Check Commission Earnings

To check available earnings, follow the steps below:
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Estimated Commission VS Commission

Estimated commission: After the customer pays for the order, the system will calculate an estimated commission
  • Estimated commission = actual paid price * the commission rate
Actual commission: The actual commission varies depending on the different situations during the after-sales period.
  • If no refund occurs, the actual commission = the estimated commission
  • If a partial refund occurs, the actual commission = (actually paid price - refund amount) * the commission rate
  • If a full refund occurs, the actual commission = $0
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Payouts of Actual Commission

Provide Tax Information and Bank Account

Creators need to submit their tax information and a bank account to the platform. Creators may do so by going to the TikTok App > E-commerce center for Creator > Toolkit > Earnings.
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*Important: the validity of creators' tax information decides how much IVA and ISR the platform needs to withhold from their affiliate commission. Learn more about withholding taxes here.

Platform Payouts

After the Settlement Period, if the creator's earnings balance is positive and the creator has a withdrawal bank account, TikTok Shop will initiate a payout to the bank account.
The minimum payout amount is MX$ 0.01.
The maximum payout amount is MX$ 1,600,000.
Payouts take place automatically at 10:00 AM every Wednesday. It may take around 0 to 2 business days, depending on the processing bank, for the funds to be credited to the creators' bank account.
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Commission Scenarios for Eligible Sales

To understand how commission can be linked to a Creator after an eligible sale, we prepared various scenarios for you:

Scenario 1: One customer, One Creator

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Scenario 2: One customer, Two Creators with Same Product

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Scenario 3: One customer, Two Creators with Different Products

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Scenario 4: One customer, Two Different Products from Same Seller checked out from Different Pathways

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FAQ

  1. Why is my actual commission $0 on the Not Settled page?
    • For all of the orders on the Not Settled page, the commission is $0. Commissions will only be sent after the orders are settled.
  2. I am a seller. How to distinguish the affiliate promotion revenue and the seller's self-sale revenue?
    • In the data compass of the e-commerce centre, you can choose to view All and Affiliate revenue:
All: seller Self-Selling + Affiliate Promotion
Affiliate: Affiliate promotion revenue only