TikTok Shop Logistics Cost Calculation Complete Guide

TikTok Shop logistics costs cover international freight, local delivery, warehouse inbound and outbound fees, storage fees, platform logistics service fees, and additional surcharges including COD handling and remote area premiums. International freight uses chargeable weight, taking the higher of actual weight or volume weight calculated as length times width times height divided by five thousand or six thousand depending on the channel. Local delivery pricing uses tiered first-weight and additional-weight rates, with significant premiums for East Malaysia, remote areas, and COD orders. Storage fees are charged per CBM per day or month and accumulate based on inventory turnover speed. Outbound operation fees are charged per order with volume-based step pricing. Key cost drivers include product density, destination region, COD ratio, return rate, shipment volume, and transport mode. Optimization methods include reducing packaging dimensions, switching high-volume SKUs to bulk sea freight replenishment, negotiating volume discounts, and building per-SKU landed cost models that capture every cost element before setting retail prices.