This calculator is specifically built to helps TikTok Seller accurately distinguish your profit percentages and ensures that every cost, from sourcing to shipping, is accounted for before you set your final price.
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Are You Overlooking These Hidden Costs?
Are You Overlooking These Hidden Costs?
Most sellers calculate profit simply as Selling Price - Product Cost. However, to get an accurate RM profit, you must include these often-forgotten details in your "Cost" field:
1. Sourcing & Logistics (COGS)
Unit cost from the supplier.
Shipping fees to Malaysia (Sea/Air freight).
Import duties and SST (if applicable).
2. TikTok Shop Platform Fees
Commission Fee: The fixed percentage TikTok takes from every sale.
Transaction Fee: The fee for processing the customer's payment.
Service Fees: Costs for joining the Free Shipping Program (FSP) or Coins Program.
3. Marketing & Operations
Affiliate Commission: The percentage you pay to creators/influencers for sales.
Ads Spend (ADS): Your estimated marketing cost per unit sold.
Packaging Materials: The cost of bubble wrap, polymailers, and thank-you cards.
Strategic Suggestions for Sellers
Strategic Suggestions for Sellers
Aim for a "Buffer" Margin: We recommend setting a margin that is 5% higher than your target to cover potential returns, damaged goods, or unexpected platform vouchers.
Calculate Reverse: If you want a 30% Profit Margin, you cannot simply add a 30% Markup. You actually need a 42.9% Markup on your cost to reach that goal.
Review Regularly: Logistics prices and TikTok Shop fee structures change. Use this calculator at least once a month to audit your top-selling products and ensure your prices are still competitive yet profitable.
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