Payouts & Finances

In This Section, You Will Learn:

• • TikTok Shop payout process
• • Understanding fees and margins
• • Bringing money to Pakistan
• • Business bookkeeping basics
• • Tax considerations
• • Reinvesting for growth

TikTok Shop Payout Process

• How Payouts Work:
• • Customer pays for order
• • TikTok holds funds during processing
• • After delivery + return window: Funds released
• • Payout to your Wise/Payoneer business account
• Payout Timeline:
• • Standard: Released 15 days after delivery
• • Top sellers: Can be faster (7 days)
• • Payout frequency: Daily or weekly (you choose)
• Payout Settings:
• • Set in Seller Center → Finance → Bank
• • Choose minimum payout threshold
• • Ensure bank details are correct

Understanding Fees & Margins

• TikTok Shop Fees:
• • Base commission: ~5% of sale
• • Affiliate commission: What you set (10-30%)
• • Payment processing: ~1-2%
• Full Cost Breakdown (Example $25 product):
• • Product cost: $5
• • Shipping to warehouse: $2
• • 3PL fulfillment: $4
• • TikTok fees (5%): $1.25
• • Affiliate (if applicable): $5 (20%)
• • Total costs: $17.25
• • Profit: $7.75 (31%)
• Target Margins:
• • Before affiliate: 40-50%+
• • After affiliate: 20-30%
• • Higher margins = more room for marketing

Withdrawing to Pakistan

• From Wise Business:
• 1. Convert GBP/USD to PKR in Wise
• 2. Withdraw to Pakistani bank account
• 3. Funds arrive in 1-2 business days
• Exchange Rate Tips:
• • Wise uses mid-market rate + small fee
• • Track rates for favorable timing
• • Consider holding some in GBP/USD for business expenses
• Amount Considerations:
• • Withdraw regularly but not daily
• • Keep working capital in business account
• • Plan for tax payments
• This is legal remittance – keep records!

Bookkeeping Basics

• Track Everything:
• • Revenue from sales
• • Product costs
• • Shipping/fulfillment costs
• • Marketing spend
• • Platform fees
• • Other expenses
• Tools to Use:
• • Google Sheets (free, simple)
• • Wave Accounting (free)
• • Xero or QuickBooks (paid, professional)
• Monthly Tasks:
• • Reconcile sales with payouts
• • Calculate profit margins by product
• • Track marketing ROI
• • Review cash flow
• UK LTD Requirements:
• • Annual accounts filing (Companies House)
• • Corporation tax return
• • Consider hiring UK accountant

Reinvesting for Growth

• How to Use Profits:
• • Reinvestment (60-70%): More inventory, more products, marketing
• • Reserve (20%): Cash buffer for unexpected costs
• • Take-home (10-20%): Your personal income
• Reinvestment Priorities:
• 1. Stock up on validated winners
• 2. Test new products
• 3. Marketing and ads
• 4. Better equipment/tools
• 5. Hiring help (VAs)
• Scaling Timeline:
• • Months 1-3: Mostly reinvest (validation phase)
• • Months 3-6: Start taking small profits
• • Month 6+: Balanced reinvestment and income
• Patience is key – build the machine first, then extract value