About dynamic commissions on TikTok Shop
Dynamic commissions is a feature within GMV Max that helps sellers grow sales on TikTok Shop by lowering commission rates when ad investment increases. By reducing fees, sellers can reinvest savings into advertising and drive more GMV growth.
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Benefits of dynamic commisions
Reduced shop commission rates: Reduce your Shop commission rates by scaling ad investment.
More flexibility: Savings can be reinvested directly into ads to grow faster.
Change this to GMV Growth: Enhanced ad investment, supported by lower commissions, drives higher sales volume and GMV expansion.
Easy to use: Automatic setup with commission reductions applied in real time.
Best practices for dynamic commissions
To get the most out of dynamic commissions:
Use full-shop campaigns – Only full-shop campaigns are eligible for Product GMV Max campaigns
Set realistic ROI goals – Commission reductions apply only when ROI thresholds are met.
Maintain always-on campaigns – Avoid pausing or underfunding campaigns.
Reinvest savings – Use reduced commission fees as additional ad budget.
How do dynamic commissions work
You're eligible for dynamic commissions if you've registered for the TikTok Shop Commissions Saving Program as a seller or if your campaign meets the required ROI target criteria. Once eligible, dynamic commissions are automatically applied to your active campaigns, ensuring you receive rewards for successful campaigns. However, to prevent misuse, there are penalties in place.
If your campaign is underfunded, paused, or offline due to insufficient funds, or if you've repeatedly violated program rules, you may face temporary or permanent ineligibility for commission reductions. This measure ensures that the commission program is being used fairly and effectively.
