TikTok Shop Calculator Breakdown

For consumer D2C and retail based brands.

Try the calculator from the video

The Math, Step by Step.

  1. 1

    $50 product

    the numbers the video starts from

    Let's say your product costs $50 and you have a 76% gross margin. You send 5,000 samples to creators on TikTok. Creator commission is typically 15%.

    We're not including repeat purchase rate in the calculations, but typically buyers will buy again in other channels like Amazon, Shopify or in retail stores.

  2. 2

    4 videos

    for every sample you send

    With every sample you send, a creator has to post. So at minimum, 5,000 samples get you 5,000 videos.

    With a creator retention mechanism (we do this in the form of a Discord group), we get four videos for every one sample sent.

  3. 3

    Break even

    where each sale goes, and why brands still do it

    Product
    24%
    Shipping
    17.5%
    TikTok Shop fee
    6%
    Refunds and chargebacks
    5.6%
    Creator commission
    15%
    Our agency commission
    15%

    If you have a great product, refunds and chargebacks will be less than the 5.6% average.

    TikTok Shop is a break even for most brands, and they understand that this creates such good demand that it typically overflows to Amazon, Shopify or retailers.

  4. 4

    105M+ views

    from 5,000 samples

    A few videos go viral and get millions of views. A few others get a few hundred or a thousand. That adds up to 5,260 views a video on average.

    5,000 samples and four videos per creator cumulatively bring in over 105 million views.

  5. 5

    Sub $1 CPM

    95% less than Meta ads

    Meta ads on average will charge you a $21 CPM.

    And your conversions go up, because influencers have a lot more trust than a cold ad people see in their feed.

  6. 6

    97% cheaper

    new videos for your ad accounts

    When we onboard creators, we get usage rights, and this is included in the cost.

    20,000 new creatives would cost you $4 million from professional UGC creators at $200 a video. You get them at the cost of $103,000 in samples.

  7. 7

    $1M in sales

    in the last 28 days, October 7 to November 3, 2026

    Caraway sent 1.4K products and got 4.7K sponsored videos made, totaling $1 million in sales that month.

    Summer Fridays sent 2.6K samples and got 5.1K videos out of them. They sold 8.6K products, almost $300,000 in sales.

    That is solely attributed to TikTok Shop. Many more sales come in from the overflow, or from repeat customers buying on Amazon, Shopify or other channels.

  8. 8

    30% margin

    a high ticket product works even better

    Even if you have a high ticket product, in fact, this works better, because you pay the same shipping cost and keep more margin. So now it's a 30% margin.

  9. 9

    $0 retainer

    we run it end to end

    Our agency commission is 15%. That runs this operation end to end, without a retainer, without a setup fee, without you doing anything except giving access to your TikTok Shop.

    Completely hands off for your team.

TikTok Shop, Explained.

Lesson 1 of 6

What is TikTok Shop?

TikTok Shop lets people buy a product right from the video they are watching, without leaving the app. The creator who made the video earns a commission on every sale.

“TikTok Shop is one of the most profitable and least risky channels for consumer D2C and retail based brands.”

From the video
In the apppeople buy without leaving TikTok

Lesson 2 of 6

What is product seeding?

You send a free sample to a creator, and in return they post a video selling it. Keep creators in a community and one sample turns into several videos over a few months.

“With every sample you send, a creator has to post.”

From the video
1 sample, 4 videoswith a creator community keeping them posting

Lesson 3 of 6

What is a CPM?

CPM is what you pay for 1,000 views. In the video it is $103,000 in samples for 105 million views, under $1 for every 1,000 views.

“A sub $1 CPM, not a bad deal.”

From the video
$0.99per 1,000 views here, against $21 on Meta

Lesson 4 of 6

What is creator commission?

Creator commission is the share of each sale the creator keeps. They only earn when they sell, so you only pay them for sales.

“The creator commission can always be raised or lowered depending on where the shop is at.”

From the video
15%of each sale, typically

Lesson 5 of 6

What are usage rights?

Usage rights let you run a creator's video in your own ad accounts. Every video the creators post becomes an ad you can test.

“When we onboard creators, we get usage rights, and this is included in the cost.”

From the video
20,000new videos you can run as ads

Lesson 6 of 6

What is overflow?

Many people see a creator's video on TikTok, then buy somewhere else: on Amazon, on your own site or in a store. Those sales never show up in TikTok Shop's numbers.

“It creates such good demand that it typically overflows to Amazon, Shopify or retailers.”

From the video
Beyond TikTokAmazon, Shopify and retail stores