How To Calculate TikTok Shop Profit
Revenue is not profit.
Many TikTok Shop sellers focus on sales volume but fail to track the true cost of selling. Understanding profit is essential if you want to scale sustainably.
TikTok Shop Profit Formula
Profit = Selling Price − Total Costs
What Costs Should Be Included?
- Product Cost
- TikTok Shop Fees
- Affiliate Commission
- Shipping Subsidies
- Packaging Costs
- Advertising Costs
Example Calculation
- Selling Price: Rp150,000
- Product Cost: Rp60,000
- TikTok Fee: Rp7,500
- Affiliate Commission: Rp15,000
- Shipping Subsidy: Rp10,000
- Packaging: Rp2,500
Total Cost = Rp95,000
Net Profit = Rp55,000
Profit Margin = 36.7%
Common Profit Mistakes
- Ignoring affiliate commissions
- Overusing discounts
- Ignoring shipping costs
- Scaling ads too early
Final Thoughts
Successful TikTok sellers monitor profit every week, not just sales.
A profitable store grows faster than a store chasing revenue alone.