Commission Saving via GMV Max

TikTok Shop may modify this Article from time to time, in which case TikTok Shop will update the “Last Revised” date at the top of this Article. If TikTok Shop makes major changes to this Article, TikTok Shop will inform you in writing via multiple channels, including but not limited to policies, TikTok Shop Seller Centre, and email, 30 days before the changes take effect. However, it is your sole responsibility to review this article from time to time to stay apprised of all updates.
Commission saving via GMV Max is a new feature launched by TikTok Shop Ads. It incentivise sellers who spend more on ads to receive greater commission saving, enabling them to achieve GMV growth at scale. We will continue to iterate on this feature and share further updates, including availability, detailed functionality, and onboarding guidance in the future. Please note that the features and details are subject to change. In the event of any discrepancy, the official rules and policies released upon actual launch shall prevail.

How to enroll for Commission Saving via GMV Max

StepsReference
  1. If you are eligible, you can see a banner of Commission Saving via GMV Max. Clicking the banner will bring you to the GMV Max Configuration Page on TTAM.
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  1. Click "Edit Target" to Ads page. Create/Edit GMV Max campaign to meet the requirements
    • ROI target ≦ ROI Requirement
The budget ≧ Recommendation or using Auto-Budget
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  1. Create a new GMV Max campaign / edit existing GMV Max campaigns
  • When creating a GMV Max campaign, a module in the top-right corner displays the participation requirements and commission saving details for “Commission Saving via GMV Max,” helping merchants understand in real time whether they are eligible. Once the campaign meets the ROI and budget requirements and is published, the commission saving will take effect.
  • If an existing campaign already meets the commission saving criteria, merchants need to go to the creation page to review the offer and republish the campaign for the commission saving to take effect. The commission saving will not be automatically applied to existing campaigns.
    • ROI Requirement: Based on realtime market data of the similar products/liverooms and seller's lowest historical ROI settings.
    • Budget Requirement: To ensure sufficient Ads spending
  • Validity period: 14 days from the time it takes effect. It may trigger a recalculation, if the product is edited after accepting the offer.
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  1. Then your campaign will receive the commission saving
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Frequently Asked Questions

  1. How is ROI requirement calculated?
ROI requirement is based on realtime market data of the similar products/liverooms and seller's historical ROI settings.
  1. How much commission saving could a seller receive?
  • The commission saving a seller will receive is calculated based on the following formula:
    • |Incremental TR Percentage| / |Commission Saving Percentage| = Exchange Rate
  • However, the maximum commission saving a seller can receive is capped at the lowest possible commission rate.
    • The lowest possible commission rate is set as 3.5%
  • Definitions
    • Exchange Rate
      • Exchange Rate is configured by the TikTok Shop. It is defined as the increase in Ads TR percentage divided by commission saving percentage . The lower the exchange rate, the greater the benefit for advertisers.
      • For example, if Ads TR increased 4%, and commission fee got reduced 2%, then the exchange rate is 2.
    • Lowest Possible Commission
      • Lowest Possible Commission is configured by the TikTok Shop.
      • Currently, the lowest possible commission is set to 3.5%.
      • For example, if the original commission rate is 7% and Ads TR increases 8%, based on the above Exchange rate of 2, the commission should have been reduced to 3%. However, due to the Lowest Possible Commission Cap, the final commission applied will be 3.5%
    • Ads Take Rate(TR)
      • Ads TR = Ads Revenue / Total GMV = 1/ Actual ROI
      • For example, if the ROI is 20, it means the Ads Take Rate is 5%.
  1. What happens if a GMV Max campaign is paused?
Commission savings are only applied to active campaigns. If a campaign is paused due to insufficient balance, the campaign will become ineligible for real time commission saving.
  1. Where can I see the commission saving amount?
For the amount, since the commission is reduced in real-time along with the order, considering factors such as user refunds, the final commission saving amount will fluctuate in real-time. The seller can navigate to the Finance page to check the relevant Order Details.
  1. How does the commission saving work?
The commission saving is applied automatically to eligible campaigns in real time. When a seller’s campaign meets the ROI requirement and budget requirement, TikTok calculates the eligible commission saving and effectively lowers the seller’s commission fee for qualifying orders.
  1. Is the commission saving applied real-time or retroactively?
Commission savings occur in real time when users pay for the order. Commission savings are applied only for orders generated while the campaign is eligible. Orders outside the eligibility period or that do not meet ROI/campaign requirements do not receive commission savings.
  1. Are the commission savings delivered as a rebate or immediate fee reduction?
The commission savings are delivered as part of a fee reduction. The commission saving is applied directly in the order settlement process, effectively lowering the commission fee in real time, no separate rebate process is needed.
  1. What is the maximum reduction a seller could receive?
The lowest possible commission is capped at 3.5%.
  1. What happens if my campaign doesn’t meet the ROI threshold?
Only campaigns that meet or lower than the ROI target receive commission savings. Campaigns higher than the threshold do not receive commission savings.
  1. Can ROI targets be adjusted mid-campaign?
Yes, however, if you adjust the ROI target such that it no longer meets the commission savings requirements, your campaign will no longer be eligible.
  1. Will it definitely be beneficial for the seller to accept the offer? Will the seller end up spending more?
To ensure the cost efficiency, we typically set the exchange ratio to be greater than 1.