profit-margin-calculator-tiktok

Profit Margin Calculator — TikTok Shop 💰

Calculate product profitability for TikTok Shop sellers — cost breakdowns, profit margins, and affiliate commission analysis.

Installation

npx skills add nexscope-ai/eCommerce-Skills --skill profit-margin-calculator-tiktok -g

Cost Components

| Cost Item | Description | Notes | |-----------|-------------|-------| | Product Cost | FOB purchase price | - | | Inbound Shipping | To FBT warehouse | - | | FBT Fulfillment | Fulfillment by TikTok | Optional | | Platform Fee | 5% | Lower ✅ | | Affiliate Commission | 10-30% | Main cost ⚠️ | | Advertising | TikTok Ads | - | | Return Cost | Higher return rate | 5-15% |

TikTok Characteristics

• Low platform fee: Only 5%
• High affiliate commission: 10-30%, main cost driver
• High return rate: Impulse buying, 5-15% returns
• Short viral cycle: Need fast inventory turnover

Usage

python3 scripts/calculator.py

python3 scripts/calculator.py '{"selling_price": 19.99, "creator_commission_rate": 0.15, "product_cost": 5}'

Output Example

💰 **TikTok Shop Profit Analysis Report**

Selling Price         $19.99   100.0%
────────────────────────────────────────
Product Cost          -$5.00    25.0%
FBT Fulfillment       -$3.50    17.5%
Platform Fee (5%)     -$1.00     5.0%
Affiliate Commission  -$3.00    15.0%  ⬅️ Main cost
...
────────────────────────────────────────
Net Profit            $4.54    22.7%

TikTok Fee Structure

| Fee Type | Rate | Notes | |----------|------|-------| | Platform Fee | 5% | Lower than Amazon | | Affiliate Commission | 10-30% | Varies by influencer tier | | FBT Fulfillment | ~$3-5/order | Similar to FBA | | Return Processing | ~$2-3/return | Higher return rate |

Key Considerations

1. Affiliate costs are variable — Top influencers demand higher rates
2. Plan for returns — Budget 5-15% return rate
3. Fast turnover needed — Viral products have short cycles
4. Lower platform fees — 5% vs Amazon's 8-15%

vs Amazon

| Item | Amazon | TikTok | |------|--------|--------| | Platform fee | 8-15% | 5% | | Affiliate | N/A | 10-30% | | Return rate | 5-10% | 5-15% | | Traffic | Search | Content |

Part of Nexscope AI — AI tools for e-commerce sellers.