TIKTOK SHOP GLOSSARY
Every TikTok Shop term, in plain English.
From GMV Max and target ROI to open plans, Spark codes and FBT, here is the vocabulary you need to run a TikTok Shop. Each definition links to a guide or service page that goes deeper.
TikTok Shop has its own vocabulary, and much of it changes as the platform does. These definitions reflect TikTok’s help center and seller guidance as of October 2026; where a fee, threshold or rule affects your shop, confirm the current version in Seller Center.
#
3PL (Third-Party Logistics)
A company that stores your inventory and picks, packs and ships orders for you, often across several sales channels at once. For TikTok Shop sellers, a 3PL is the main alternative to Fulfilled by TikTok and to packing orders yourself. The deciding test is whether it can hit TikTok Shop’s dispatch deadlines every day, including during sale events. Related guide →
A
Account Health Rating (AHR)
TikTok Shop’s US score for policy compliance, which replaced the older violation points system in July 2026. It runs from 0 to 1,000 points: new shops start at 200, violations remove points, and completed orders and policy quizzes can add points back. Falling to set milestones (150, 100 and 50 points) brings temporary limits on new listings and campaign sign-ups, and reaching 0 can mean deactivation. Related guide →
Affiliate Center
The area of TikTok Shop Seller Center where you run your affiliate program. From here you set up open and targeted plans, find and invite creators, approve free sample requests and track affiliate orders and commissions. Most of the day-to-day work of a creator program happens on this one screen. Related guide →
Affiliate Commission
The percentage of each sale you pay a creator when a buyer purchases through their video, LIVE or showcase. You set the rate per product and plan, and TikTok Shop deducts it from your settlement automatically. Rates vary widely by category, so price them from your own unit economics rather than from what competitors advertise. Related guide →
Affiliate Creator
A TikTok creator who has joined TikTok Shop’s affiliate program and can tag products in videos and LIVEs to earn commission on sales. Creators must meet TikTok’s eligibility rules, which change from time to time. For sellers, the right affiliates are judged by the sales they drive and their audience fit, not by follower count alone. Related guide →
AOV (Average Order Value)
Total revenue divided by the number of orders over a period. If 400 orders bring in $14,000, your AOV is $35. Raising AOV with bundles or multi-packs makes referral fees, commissions and shipping a smaller share of each order. Related guide →
Attribution Window
The period after someone sees or clicks an ad during which a purchase is credited to that ad. TikTok’s help center says Product GMV Max uses a one-day attribution window and credits orders of promoted products to the campaign, including organic and affiliate orders. That is why GMV Max results should be read alongside total shop sales, not in isolation. Related guide →
B
Brand Authorization
Proof that you are allowed to sell another company’s branded products, usually a letter or distribution agreement from the brand owner or an authorized distributor. TikTok Shop can ask for it before approving listings for certain brands. It is the first thing to secure in a wholesale model, before you buy inventory. Related guide →
Break-Even ROI
The lowest GMV Max ROI at which ad spend pays for itself without losing money on the sale. Calculate it as 1 divided by your margin before ads: if you keep 40% of the selling price after product cost, fees, commission and shipping, break-even ROI is 1 / 0.40 = 2.5. Set your target ROI above this number when each order needs to be profitable on its own. Related guide →
Business Center
TikTok for Business’s tool for managing ad accounts, TikTok accounts, creative assets and team permissions in one place. Brands and agencies use it to share access securely without sharing passwords. Your TikTok Shop, Business Center and ad account need to stay correctly linked for GMV Max campaigns to keep running. Related guide →
Business Verification
The onboarding step in which TikTok Shop confirms your business is real before you can sell. In the US it generally involves legal entity details, a tax ID, identification for the owner or representative and a bank account, though requirements vary by country and entity type. Mismatched names, addresses or documents are a common reason applications are rejected. Related guide →
C
CAC (Customer Acquisition Cost)
What you spend, on average, to win one new customer across ads, creator fees, samples and promotions. Compare it with your margin per order, and with repeat purchases, to see whether growth is profitable. On TikTok Shop, sample costs and creator payments belong in CAC, not only ad spend. Related guide →
Catalog Sync
The connection that keeps products, prices and inventory matched between TikTok Shop and another system, such as Shopify. A clean sync prevents overselling and mismatched listings. Most sync errors trace back to missing attributes, duplicate SKUs or category mismatches. Related guide →
Category Approval
Extra documents or approval that some TikTok Shop categories require before you can list in them, usually categories with safety, health or regulatory risk. Requirements differ by category and change over time. Check them in Seller Center before you commit to inventory. Related guide →
COGS (Cost of Goods Sold)
The direct cost of the product you sell: the unit price from your manufacturer or supplier plus packaging and, often, inbound freight. It is the starting point for every margin calculation. If COGS is too high relative to your selling price, no amount of advertising fixes the economics. Related guide →
Commercial Content Disclosure
The setting and label TikTok uses for posts that promote a brand, product or service, including affiliate videos. In the US, the FTC also expects creators to disclose paid relationships and free products clearly, in the video itself rather than only in the caption. Build disclosure into every creator brief so it never depends on memory. Related guide →
Contribution Margin
What is left from a sale after all variable costs: product cost, referral fee, creator commission, shipping, packaging and ad spend. It is the money that actually pays for overheads and profit. Track it per order and per SKU, because a product can post healthy GMV and still have a negative contribution margin. Related guide →
Conversion Rate (CVR)
The share of visitors or viewers who buy. On TikTok Shop it is usually measured as orders divided by product page views, or orders divided by clicks on an ad or product link. Better images, clearer titles, stronger reviews and sharper pricing tend to lift it. Related guide →
Coupons and Vouchers
Discounts you fund in Seller Center, such as percentage-off or money-off offers, that appear on product pages and alongside videos. They can lift conversion, but every coupon comes out of your margin. TikTok has said GMV Max now counts costs such as coupons, affiliate commissions and referral fees when it measures ROI, so build them into your targets. Related guide →
CPA (Cost per Acquisition)
Ad spend divided by the number of purchases it produced. If $600 of spend drives 40 orders, CPA is $15. GMV Max optimizes to ROI rather than a set CPA, but CPA is still a useful check against your margin per order. Related guide →
Creative Fatigue
The drop in performance when the same audience has seen a video too many times: click-through and conversion fall and costs rise. GMV Max softens it by rotating through many assets, but only if new videos keep coming in. A steady flow of fresh creator and brand content is the usual fix. Related guide →
Creator Brief
A short document that tells a creator what to make: the product, key benefits, hooks to try, claims they can and cannot make, disclosure rules and deadlines. A good brief leaves room for the creator’s own style. It is the simplest way to get compliant content that sells without scripting every word. Related guide →
Creator Health Rating (CHR)
TikTok Shop’s compliance and content-quality score for creators, on a 0 to 1,000 scale with new creators starting at 200. Violations remove points, while compliant content that produces completed orders adds them. Creators who fall to lower milestones can temporarily lose shoppable content and campaign access, so check it when you vet affiliates. Related guide →
Creator Retainer
A fixed monthly payment to a creator for an agreed volume of videos or LIVEs, usually alongside a commission. Retainers suit proven creators you want posting consistently. Tie them to clear deliverables, usage rights and a review date. Related guide →
Creator Vetting
Checking a creator before you invest samples or fees: past TikTok Shop sales, audience location and age, content quality, posting consistency and compliance record. Vetting by real sales data filters out accounts with large followings that do not convert. It is the step that makes a sampling budget go further. Related guide →
CTR (Click-Through Rate)
The share of people who click after seeing an ad, video or product card: clicks divided by impressions. Videos with a strong hook usually earn a higher CTR. Low CTR with healthy conversion points to a creative problem; high CTR with weak conversion points to the product page or price. Related guide →
D
Dropshipping
Selling products you do not stock: a supplier ships directly to the customer when an order comes in. It needs little capital, but you give up control of shipping speed and product quality, both of which TikTok Shop measures closely. Check current TikTok Shop fulfillment policies and dispatch rules before choosing this model. Related guide →
F
FBT (Fulfilled by TikTok)
TikTok Shop’s own fulfillment program: you send inventory to TikTok’s warehouses, and TikTok picks, packs and delivers your orders. FBT products can earn delivery badges that show buyers a confirmed delivery date, which can help conversion. The trade-offs are inbound prep rules, storage fees and less direct control over how orders are packed. Related guide →
Flash Deal
A time-limited discount on selected products, shown with a countdown. Flash Deals are set up in Seller Center, and a shop needs a minimum Shop Performance Score to use them. Plan the discount against your margin so the extra volume is still profitable. Related guide →
Flat Fee
A one-off payment to a creator for a video or LIVE, paid regardless of sales. Flat fees are common with larger creators who will not post for commission alone. Pair them with a commission so the creator still benefits when content sells, and agree usage rights in writing. Related guide →
Free Sample
Product sent to a creator at no cost so they can make content about it, usually requested and approved through the Affiliate Center. Samples are the main cost of seeding a creator program. Approve them based on a creator’s sales history and fit, and follow up so samples turn into posts. Related guide →
G
GMV (Gross Merchandise Value)
The total value of goods sold through your shop over a period, before refunds, fees, commissions and costs are taken out. It is the headline sales number on TikTok Shop and the metric GMV Max is built to grow. GMV shows scale, not profit, so always read it next to your margin. Related guide →
GMV Max
TikTok’s automated ad campaign type for TikTok Shop, and since July 2025 the only campaign type for new TikTok Shop ads. You choose the products or LIVE to promote and set a target ROI and budget, and the system builds ads from your videos, authorized affiliate posts and other content. It then places them across the TikTok feed, search, the Shop Tab and TikTok’s ad network to grow total shop GMV. Related guide →
Gross Margin
Revenue minus product cost (COGS), expressed as a percentage of revenue. A product that sells for $30 and costs $9 has a 70% gross margin. On TikTok Shop, gross margin has to cover referral fees, commissions, shipping and ads before any profit is left. Related guide →
H
Handling Time
How long you take to ship an order after it is placed. TikTok Shop sets dispatch deadlines, and orders that miss them count against your late dispatch rate. Short, reliable handling time protects both your account standing and your delivery promises to buyers. Related guide →
Hook
The first one to three seconds of a video, designed to stop the scroll: a bold claim, a visible problem, a surprising result or a direct question. On TikTok, the hook largely decides whether the rest of the video gets watched. Good briefs suggest several hooks and let creators test them. Related guide →
Hybrid Deal
A creator agreement that combines a flat fee with a commission on sales. The fee secures the creator’s time, and the commission keeps their incentives tied to results. It is a common middle ground for experienced creators who want some fixed pay. Related guide →
I
Incrementality
The sales that would not have happened without a given campaign. Because GMV Max credits organic and affiliate orders on promoted products, part of what it reports may have happened anyway. Comparing promoted and unpromoted products, or before-and-after periods, helps estimate the true lift. Related guide →
L
Landed Cost
The full cost of getting one unit to where it can be sold: product price, freight, duties, insurance and inbound handling. It is a more honest base for margin math than the factory price. Imported products in particular can look profitable until landed cost is added up. Related guide →
Late Dispatch Rate (LDR)
The share of orders not handed to the carrier by the dispatch deadline. It is one of TikTok Shop’s core fulfillment metrics for shops that ship their own orders. A high rate can lead to warnings, penalties and restrictions, so check the current threshold in Seller Center. Related guide →
Listing Optimization
Improving a product listing so it ranks in search and converts better: clear titles with the right keywords, strong main images and video, complete attributes, accurate descriptions and competitive pricing. It is one of the cheapest ways to improve results from both organic traffic and ads. Revisit listings as reviews come in and search terms change. Related guide →
LIVE GMV Max
The version of GMV Max built for livestreams. TikTok describes it as an automated Shop Ads campaign that optimizes traffic to your LIVE to get the highest gross revenue, measured by LIVE ROI. It uses Video-to-LIVE ads, which bring viewers in from your videos, and LIVE-to-LIVE ads, which promote the stream itself. Related guide →
LIVE Host
The person presenting products during a TikTok LIVE: demonstrating, answering comments and prompting viewers to buy. A good host matters as much as the offer, and many shops use trained hosts rather than founders. A consistent host and schedule help a LIVE audience grow. Related guide →
LIVE ROI
The success measure for LIVE GMV Max: total liveroom GMV divided by total ad spend. A LIVE ROI of 4 means $4 in LIVE sales for every $1 spent on ads. Like other TikTok ROI figures, it is based on revenue and does not account for product cost. Related guide →
LIVE Shopping
Selling through real-time TikTok LIVE streams, where viewers can buy pinned products without leaving the stream. It works well for demonstrations, bundles and limited-time offers. Strong LIVE programs run on a set schedule with a planned run of show and, often, LIVE GMV Max behind them. Related guide →
M
Max Delivery
A GMV Max option that aims to spend the full budget for the highest possible gross revenue or delivery, rather than holding to a target ROI. TikTok suggests it for short pushes, such as a product launch or clearing inventory, and notes that ROI can fluctuate while it is on. Campaigns using Max delivery are not covered by ROI protection. Related guide →
MOQ (Minimum Order Quantity)
The smallest order a manufacturer or supplier will accept, in units or dollars. MOQs set the minimum cash you need to launch a private label product or open a wholesale account. Negotiating a smaller first order reduces risk while you test demand. Related guide →
O
On-Time Delivery Rate
The share of orders that reach customers by the promised delivery date. TikTok Shop counts it in the Shop Performance Score, which affects access to tools such as affiliate plans. Carrier choice, handling time and warehouse location all move it. Related guide →
Open Plan
An affiliate plan in which any eligible creator can find your product and promote it at one commission rate you set, without an invitation. It is the widest net for attracting creators to a product. Set the rate at a level your margin can sustain across every sale it applies to. Related guide →
P
PDP (Product Detail Page)
The page a shopper lands on after tapping a product: images, video, title, price, variants, reviews, shipping details and the buy button. Every video, LIVE and ad ultimately sends traffic here. A weak PDP wastes the traffic your creators and ads generate. Related guide →
Private Label
Selling products made by a manufacturer under your own brand name. You control the brand, pricing and product decisions and build an asset over time, but you carry the inventory, development and compliance risk. It is one of the two business models TokVendors supports. Related guide →
Product Anchor
The product link attached to a TikTok video or LIVE that lets viewers tap through to buy. TikTok’s GMV Max best practices note that posting more videos with product anchors gives campaigns more potential to grow GMV. Every piece of creator content should be anchored to the right product and variant. Related guide →
Product Attributes
The structured details on a listing, such as size, color, material, ingredients, compatibility and pack quantity. Complete attributes help TikTok Shop match products to searches and filters, and they cut returns caused by wrong expectations. Missing required attributes are also a common reason listings get rejected. Related guide →
Product GMV Max
The GMV Max campaign for promoting products through videos and product cards. TikTok says it optimizes for your shop’s total channel ROI, automatically choosing creative, audiences and placements across the feed, search, the Shop Tab and TikTok’s ad network. For most shops it is the always-on ad engine, with LIVE GMV Max added when livestreams are a regular channel. Related guide →
Product Reviews
Buyer ratings and written feedback on a product page. Reviews influence conversion directly, and TikTok Shop’s Shop Performance Score tracks your negative review rate. Early sales from creators help a new product build the review base it needs. Related guide →
Product Sourcing
Finding and securing products to sell: identifying suppliers or brands, checking quality and compliance, negotiating price and terms and ordering samples. Sourcing decisions set your margin before any marketing starts. For TikTok Shop, sourcing should also weigh how easy a product is to demonstrate on video. Related guide →
Prohibited and Restricted Products
Items TikTok Shop does not allow at all (prohibited) or allows only with approval or conditions (restricted). Listing them can lead to removed listings and account health penalties. Check the current policy list in Seller Center before you source a new product. Related guide →
Promotional Campaigns
Platform-wide sales events run by TikTok Shop, such as seasonal and mega sale campaigns, that sellers can register products for, usually with a required discount. Taking part can bring extra visibility and traffic. Eligibility depends on account standing: shops that fall to certain account health milestones cannot join new mega campaigns for a period. Related guide →
R
Referral Fee
The commission TikTok Shop keeps from each sale, charged as a percentage of the order amount. The rate depends on product category and has changed during 2026, so confirm the current rate for your products in Seller Center and on your settlement statements. It is usually the largest platform fee in your unit economics. Related guide →
Return and Refund Rate
The share of orders that are returned or refunded. TikTok Shop’s Shop Performance Score tracks returns and refunds that are not the buyer’s fault, so problems caused by inaccurate listings or damaged items weigh on your score. Accurate listings and solid packaging are the main levers. Related guide →
ROAS (Return on Ad Spend)
Revenue from ads divided by ad spend. If $1,000 of spend produces $3,500 in sales, ROAS is 3.5. GMV Max reports the same calculation under the name ROI, so when TikTok says ROI it usually means ROAS. Related guide →
ROI (Return on Investment)
In general business use, ROI is profit divided by the money invested. Inside GMV Max, TikTok uses ROI to mean gross revenue divided by ad spend, which most marketers call ROAS. Keep the two meanings apart: a GMV Max ROI of 3 can still lose money if your margins are thin. Related guide →
ROI Protection
A GMV Max safeguard, live since February 25, 2026, that issues ad credits automatically when a campaign’s ROI falls below 90% of its daily target ROI on a day with more than 20 orders. Days with certain manual target ROI changes, paused campaigns or product edits are excluded, as are Max delivery, creative boost and LIVE viewer boost budgets. Credits are issued under TikTok’s ad credit terms. Related guide →
Run of Show
The minute-by-minute plan for a LIVE: which products appear when, offers and their timing, talking points, giveaways and who does what. It keeps the host on track and makes results comparable from one stream to the next. Treat it as a working document you refine after every session. Related guide →
S
Seller Center
TikTok Shop’s back office for sellers, available on the web and as an app. It is where you manage listings, orders, fulfillment, promotions, the affiliate program, finances and account health. Many GMV Max settings and reports are available there as well as in TikTok Ads Manager. Related guide →
Seller Shipping
A fulfillment setup in which you, or your 3PL, ship TikTok Shop orders instead of using Fulfilled by TikTok. You keep control of packaging and inventory but own every dispatch and delivery metric. TikTok has been changing seller shipping options during 2026, so confirm what is available to your shop in Seller Center. Related guide →
Settlement
The payout TikTok Shop sends to your bank account after an order is complete, minus referral fees, affiliate commissions, shipping charges and any adjustments. Settlement statements are the most reliable record of what you actually earned. Reconcile them monthly against your own margin model. Related guide →
Shop Ads Commission
A separate affiliate commission rate that applies when a buyer purchases through an ad that uses a creator’s affiliate post. TikTok lets sellers set it per product, product group or shop, anywhere from 1% to 80%. If it is turned off, the creator earns the standard commission on those ad-driven orders. Related guide →
Shop Performance Score (SPS)
TikTok Shop’s 0 to 5 rating of how well a shop serves customers, based on metrics such as negative review rate, seller-fault cancellations, on-time delivery and customer service. Shops receive a score once they have enough qualifying orders (TikTok’s 2026 guide sets this at 30 in the last 90 days). Many tools depend on it: for example, a score of 3.5 or higher is needed to create affiliate plans. Related guide →
Shop Tab
A dedicated shopping section inside the TikTok app, where available, in which people browse products, deals and campaigns without starting from a video. It is one of the placements Product GMV Max can use. Strong titles, images, reviews and pricing help products earn visibility there. Related guide →
Showcase
The product collection on a creator’s TikTok profile, made up of items they have added through the affiliate program. Viewers can shop it directly, so a product can keep selling after the original video stops getting views. Products creators pick up from your open or targeted plans appear here. Related guide →
SKU (Stock Keeping Unit)
A unique code for each sellable version of a product, so a T-shirt in three sizes and two colors has six SKUs. Clean SKU data keeps inventory accurate across TikTok Shop, Shopify and your warehouse. Duplicate or mismatched SKUs are a frequent cause of sync errors. Related guide →
Spark Ads
An ad format that runs an existing organic TikTok post as an ad, keeping the original account’s name, likes and comments. Creators authorize their posts with a code or by linking accounts. In GMV Max, authorized creator and affiliate posts become part of the creative pool the campaign draws from. Related guide →
Spark Code
The authorization code, which TikTok also calls a video code, that a creator generates in the TikTok app for one specific post so a brand can run it as an ad. Each code covers a single video for a set authorization period. Agree on Spark code delivery and duration in the creator deal, before the video goes live. Related guide →
T
Target ROI
The return you ask a GMV Max campaign to hit, measured as gross revenue divided by ad spend. A lower target lets the system spend more and usually grows GMV; a higher target protects efficiency but can limit delivery. TikTok recommends keeping a setting for at least three full days before changing it. Related guide →
Targeted Plan
An invite-only affiliate plan in which you offer a custom commission, usually higher than your open rate, to creators you choose. It lets you reward proven sellers without raising the rate for everyone. Targeted plans often come with free samples and agreed deliverables. Related guide →
TikTok Ads Manager
TikTok’s platform for creating, managing and reporting on ad campaigns, including GMV Max. It connects to your TikTok Shop through Business Center. Detailed ad reporting and creative management mostly happen here. Related guide →
TikTok Affiliate Partner (TAP)
A TikTok Shop partner designation for agencies that specialize in affiliate marketing: connecting sellers with networks of creators and running affiliate campaigns for them. It is a program membership, not a measure of results. If an agency says it holds the designation, ask what it means for your account in practice. Related guide →
TikTok Shop
TikTok’s built-in ecommerce platform, where people discover products in videos, LIVEs and the Shop Tab and buy without leaving the app. Sellers list products, work with affiliate creators and run GMV Max ads in one connected system. Global TikTok Shop GMV reached $50.3 billion in the first half of 2026, up 92% year over year, according to Momentum Works and Tabcut data reported by Tubefilter. Related guide →
TikTok Shop Agency
A company that runs part or all of a TikTok Shop for a seller: setup, listings, creators, ads, LIVE and fulfillment. A good agency works inside a store you own and gives you full access and reporting. Be cautious of any agency that promises specific income or profits. Related guide →
TikTok Shop Partner (TSP)
A third-party service provider recognized in TikTok Shop’s partner program to help sellers or creators with operations, content or creator matching. Sellers authorize a partner’s access from Seller Center, and can cancel it at any time. If an agency claims partner status, ask to see it and check exactly what access you are granting. Related guide →
TikTok Shop SEO
Optimizing products and content so they appear in TikTok and TikTok Shop search results. It covers keywords in product titles, attributes and descriptions, and in video captions and on-screen text. Search traffic signals clear buying intent, so small ranking gains can matter. Related guide →
U
UGC (User-Generated Content)
Content made by customers or creators rather than the brand, usually filmed on a phone in a native TikTok style. On TikTok Shop, most UGC comes from affiliate creators and feeds both organic reach and GMV Max. It tends to feel more trustworthy than polished brand ads. Related guide →
Unit Economics
The profit or loss on a single unit sold, after product cost, referral fee, commission, shipping, packaging, coupons and ad spend. If unit economics do not work at small scale, they rarely improve with more volume. Run the numbers before you launch a product, not after. Related guide →
Usage Rights
The permission a creator gives a brand to use their content beyond their own account, for example in ads, on product pages or on other channels, and for how long. Usage rights should be written into the creator agreement. A Spark code covers ad use of one specific post on TikTok, not necessarily reuse elsewhere. Related guide →
V
Video Shopping Ads
A former TikTok Shop ad format that promoted products with shoppable videos. Since July 2025, new ads with TikTok Shop as the destination run through GMV Max, and older formats such as Video Shopping Ads and Product Shopping Ads can no longer be created that way. You will still see the names in older guides and legacy reports. Related guide →
W
Wholesale
Buying established branded products in bulk at wholesale prices and reselling them, in this case on TikTok Shop. It skips product development and builds on existing brand demand, but margins are usually thinner and you need brand authorization. It is one of the two business models TokVendors supports. Related guide →
Winning Product
A product with real demand, healthy margins after all TikTok Shop costs and a natural fit for short video and creators. Useful signals include rising search and sales data, repeatable content angles and manageable competition. A product only counts as a winner if the unit economics still work after fees, commissions and ads. Related guide →
NEXT STEP
Want experts to run it all?
Book a free strategy call and we’ll map your TikTok Shop from setup to scale.