Supply Chain Optimization Tiktok

Cost Structure (TikTok Shop)

Selling Price $XX
├── Product Cost
├── Inbound Shipping
├── FBT Fulfillment / Self-ship
├── Platform Fee (2%)
├── Referral Fee (2-8%)
├── Affiliate Commission (10-30%)  ← TikTok-specific
├── Advertising (Spark Ads)
└── Net Profit

Benchmark Configuration

BENCHMARKS = {
    "tiktok": {
        "gross_margin": {
            "healthy": 0.45,    # Need to cover affiliate commission
            "warning": 0.35,
            "danger": 0.25
        },
        "shipping_ratio": {
            "healthy": 0.05,
            "warning": 0.08,
            "danger": 0.12
        },
        "inventory_days": {
            "healthy": 30,      # TikTok viral cycle is short
            "warning": 45,
            "danger": 60
        },
        "cash_cycle": {
            "healthy": 60,      # Fast payment
            "warning": 90,
            "danger": 120
        },
        "net_margin": {
            "healthy": 0.15,    # After affiliate split
            "warning": 0.08,
            "danger": 0.03
        },
        # TikTok-specific metrics
        "return_rate": {
            "healthy": 0.10,    # <10% healthy
            "warning": 0.20,
            "danger": 0.30
        },
        "affiliate_ratio": {
            "healthy": 0.20,    # Affiliate commission ratio
            "warning": 0.30,
            "danger": 0.40
        }
    }
}

TikTok-Specific Costs

Affiliate Commission

Livestream selling: 10-30% commission
Short video promotion: 10-25% commission
Top influencers: May require upfront fees

Return Costs

TikTok return rates typically higher than traditional e-commerce (impulse buying)
Must account for:
├── Return shipping cost
├── Product damage/loss
└── Restocking fees

Input Data

**Sales (TikTok-specific)**
• Average Selling Price: $___
• FBT Fulfillment Fee: $___/unit
• Platform Fee: 2% (fixed)
• Referral Fee: ___%
• Affiliate Commission Rate: ___% (if applicable)
• Spark Ads Spend Ratio: ___%

**Risk (TikTok-specific)**
• Return Rate: ___%
• Return Processing Cost: $___/unit

API Integration

TikTok Shop API

export TIKTOK_APP_KEY="xxx"
export TIKTOK_APP_SECRET="xxx"
export TIKTOK_ACCESS_TOKEN="xxx"

Available Data

Bottleneck Diagnosis Focus

TikTok Shop-specific bottlenecks:

1. High affiliate commission → Profit erosion
2. High return rate → Hidden costs
3. Slow inventory turnover → Short viral cycle, high stagnation risk
4. Content dependency → Unstable traffic

vs Amazon Comparison

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