Profit & Loss (P&L): Complete Guide for TikTok Shop Sellers

Selling on TikTok Shop is overwhelming. You can reach millions with short videos through ads and influencer marketing, but many sellers admit that after TikTok fees, shipping, and promos, it often feels like they’re selling a lot without really making a profit.

This is where tracking of profit and Loss becomes important. In simple words, P&L shows how much money you bring in from sales and how much goes out for costs, ads, fees, shipping, and commissions. The result tells you your true profit, not just the sales number TikTok shows on your dashboard.

As the founder of Kixmon, I’ve seen the same story sellers vent about on Reddit: “Orders keep rolling in, but my bank account doesn’t match my sales.” Hidden fees, shipping charges, promo discounts, “TikTok takes way more than the 6% they claim,” one seller wrote. In 2025, with costs rising and competition getting tougher, tracking profit isn’t optional anymore. If you only look at sales, you might think you’re scaling when in reality you’re just moving product and slowly bleeding money.

That is why we built Kixmon, a tool designed to give sellers real time numbers on sales, GMV Max Ads spend, promos, Referral fee, shipping fees, Affiliate Shop Ads Commission, Affiliate Partner Commission, overall Affiliate Commission, non-order adjustments, refunds, and net profit. With this clarity, you always know exactly where your business stands and can grow with confidence.

What is Profit & Loss (P&L)?

Profit and Loss, also called P&L, is a basic report that shows how much money your business really makes. It compares all the money that comes in (sales) with all the money that goes out, COGS, promos, refunds, shipping, TikTok fees, GMV max ad spend, and all types of affiliate commissions, among others. The final number is your net profit.

For TikTok Shop sellers, P&L is like a health check for your store. Sales numbers alone don’t tell the full story. You might be selling hundreds of products, but if your ad spend is high, promos are eating up profits, or TikTok fees are steep, your profits could be very low, or even negative.

This is why a tool like Kixmon is so useful. Instead of doing manual calculations in spreadsheets or doing integration with QuickBooks, the tool automatically pulls all the financial matrices from TikTok Shop APIs into one simple dashboard. With this, you always know your true P&L and can make smarter decisions about pricing, ads spend, and growth.

Why P&L Matters for TikTok Shop Sellers

Many TikTok Shop sellers focus only on GMV, but higher GMV does not always mean profit. A product that looks successful might actually be losing money once you subtract Referral fee, ads spend, promos, shipping, refund cost, COGS and affiliate commissions. This is why tracking Profit and Loss (P&L) is so important.

By 2025, selling on TikTok Shop has become tougher. Ad costs are rising, affiliate commissions are getting steeper, and new sellers flood in daily. Without a clear P&L, it’s easy to overspend on ads or push products that seem promising, but barely break even.

A tool that shows your real-time net profit, breaks down all affiliate payouts (Affiliate Shop Ads Commission, Affiliate Partner Commission, total Affiliate Commission), ad spend, refunds, shipping, and more. With that clarity, you can protect your margins, spot real winners, and grow confidently.

Common Mistakes TikTok Shop Sellers Make with P&L

Even successful TikTok Shop sellers often make errors when tracking Profit & Loss (P&L). These mistakes can lead to misleading numbers and bad business decisions. Here are the most common ones:

Ignoring hidden or rising costs & fees

Sellers sometimes overlook referral and commission fees, transaction charges, discount subsidies, and rising TikTok fees. As a result, margins can get squeezed unexpectedly.

Not tracking TikTok’s referral (platform) fees and hidden charges

Sellers often underestimate the total percentage TikTok deducts (referral fees, “discount absorbs,” shipping subsidies), which makes their real margins far smaller than sales suggest.

Overlooking rising ad spend vs. ad credits

Many focus on gross revenue but ignore how quickly TikTok Ads costs can outpace ad credits or promotional incentives, eating into net profit. Spending too much on ads without checking ROI is a major reason sellers lose money. Always connect your ad costs directly to your P&L.

Failing to account for affiliate commission payouts

Shop Ads commission, partner-to-creator commissions, and total affiliate payouts can become one of the largest expenses, but sellers rarely track them accurately.

Ignoring refunds, returns, and non-order adjustments

Chargebacks, returns, and platform (like lost/damaged items) often go uncounted, causing profit calculations to be overly optimistic

Relying only on top-line GMV instead of true net profit

Many celebrate big sales days without calculating the actual net profit after all fees and costs, leading to decisions based on inflated numbers.

When Big Sales Don’t Mean Big Profits: A Kixmon Customer’s Wake-Up Call

One of our Kixmon customers learned this the hard way. After a string of strong sales days, several of their branded products were suddenly frozen by TikTok for “IP/brand infringement.”
While they appealed, inventory costs, ad spend, and affiliate commissions kept piling up, but no new revenue came in.

Kixmon doesn’t handle appeals or product reinstatements, but it did give them a clear view of the real financial impact in real time. Instead of relying on top-line sales numbers, they could see exactly how those hidden costs turned what looked like a great sales week into a loss.

How to Calculate P&L for TikTok Shop Sellers

Calculating Profit and Loss (P&L) is not as hard as it sounds. Think of it as simple math:

Profit = Sales + Shipping Income – (Product Cost + Promos+ TikTok Fees + Ads spend net of Ads credits+ Shipping + Commissions + Refund cost+- Non order Adjustments)

Here’s a breakdown for TikTok Shop sellers:

• Cost of Goods Sold (COGS): How much you paid your supplier or manufacturer for the product?
• Sales Revenue: The total money you make from selling products plus shipping income
• TikTok Shop Fees

Platform fees and service charges, i.e 6% that TikTok deducts.

Promos:

Every kind of discounts, i.e. promos = seller_discount_amount + seller_shipping_fee_discount_amount + coFunded_Promotion_ServiceFee

Advertising Costs:

Money spent on TikTok Ads to promote your products. I.e GMV Max Spend – Ads Credit Utilized.

Shipping & Logistics:

Shipping cost depending on the type of shipping (Seller Shipping, Titkok Shipping, FBT, Co-funded fee shipping reimbursement)

Creator or Affiliate Commissions:

Payments to influencers and affiliates who promote your products, i.e. Affiliate shop Ads commission, Affiliate Partner Commission, Affiliate Commission. Can be calculated by Product price % commission.

Other Expenses:

Returns, refunds, and any extra costs.

When you subtract all these from your sales revenue, you’ll know your real profit.

Instead of doing this manually, Kixmon automates everything. You can even import COGS via Excel/CSV and export P&L reports in one click, saving time and avoiding mistakes.

Benefits of Using Kixmon

Kixmon is an official TikTok Shop partner, trusted by high-volume sellers managing tens of thousands of daily orders. Managing your TikTok Shop manually can be stressful, but Kixmon makes everything easier.

Here’s why:

Spot underperformers early:

Analytics lets you flag products or variations that aren’t giving profit (despite possibly high sales) and decide whether to discontinue, change pricing, or tweak marketing.

Kixmon highlights how sellers can “identify poorly performing SKUs” in real time using analytics.

Improve decision-making with data, not gut:

Instead of guessing, decisions become backed by numbers: whether to run a promotion, increase ad spend, discontinue a line, or expand. 

Don’t have to wait for an accountant to show you profits:

You don’t have to wait for your accountant to show you profits after a month, and even then, they’re often prone to errors. Kixmon gives you everything in real time, so there’s no waiting. No more messy spreadsheets, Kixmon automatically calculates everything for you.

Historical trends & forecasting:

Seeing profit trends over weeks/months helps you spot margin erosion, seasonal patterns, or the impact of cost increases before they become critical.

Trust/Credibility with stakeholders:

Having formal, auditable reports (P&L statements, dashboards) gives confidence to partners, investors, teams, or even potential acquirers that your operations are data-driven and transparent.

In 2025, the TikTok Shop space is more competitive than ever. Sellers who track their Profit and Loss (P&L) with the right tools gain an edge over those still guessing their numbers.

Step-by-Step Guide to Using Kixmon for P&L

Getting started with Kixmon is quick and simple. Here’s a step-by-step guide for sellers:

Step 1: Sign Up for Free

Go to Kixmon.com and create your account, and start your free trial of 14 days. You can start without paying anything.

Step 2: Connect Your TikTok Shop

Link your TikTok Shop account to Kixmon in just a few clicks. This allows Kixmon to automatically pull all your financial matrices in real time from TikTok shop APIs.

Step 3: Connect Your Ads Account

Authorize your ad account with Kixmon to see the complete picture. Make sure you are connecting the right account. After connecting, go to the shop setting and confirm that the correct account has been connected to Kixmon.

Step 3: Add Your Product Costs (COGS) and shipping costs

Upload your product costs and estimated shipping costs manually or import them via Excel/CSV for faster setup. Once your order is settled, the estimated shipping cost will be replaced with the actual shipping cost.

Step 4: Track Real-Time Profits

Kixmon’s dashboard shows your daily profits after deducting TikTok fees, ads, shipping, and commissions.

Step 5: Export Your P&L Sheet

Download your profit and loss reports whenever you need them, perfect for reviewing performance or sharing with your team.

Step 6: Use Insights to Grow

Identify your most profitable products, cut losses on weak ones, and scale your winning strategies.

With these simple steps, TikTok Shop sellers can finally understand their real profits and make smarter business decisions.

Tips to Maximize TikTok Shop Profits in 2025

Running a TikTok Shop in 2025 is exciting, but competition is tougher than ever. To stay profitable, here are some practical tips every seller should follow:

Track Every Fee and Expense

TikTok charges commissions, ads, shipping, and creator payouts. Use Kixmon to make sure you never miss hidden costs.

Focus on High-Margin Products

Not every product is worth scaling. Use P&L reports to spot your top earners and drop products that eat into your margins.

Control Ad Spend

TikTok ads can bring fast growth, but overspending kills profits. Always compare your ad spend with actual sales to keep ROAS positive.

Negotiate Better COGS

If possible, lower your product cost with suppliers. Even a small discount can boost long-term profits.

Export & Review Data Regularly

Don’t just rely on TikTok’s dashboard. Export your reports from Kixmon into spreadsheets for deeper analysis.

Keep Cash Flow in Check

Always know how much money is coming in and going out. Real-time profit tracking helps avoid surprises.

By following these steps, sellers can maximize their TikTok Shop profits while reducing risks in 2025.

The Future of TikTok Shop Profit Tracking (2025 & Beyond)

TikTok Shop is growing fast, and the future of profit tracking will be smarter and more automated than ever. Here’s what sellers can expect:

AI-powered analytics

Artificial intelligence will help sellers understand patterns, predict sales, and highlight risks in real time. This means smarter decision-making with less manual work.

Real-time expense allocation

Instead of waiting days or weeks to see profit reports, TikTok Shop sellers will have instant updates on every fee, ad spend, and commission, making P&L more accurate.

Smart growth strategies

Advanced profit tools will suggest where to cut costs, which products are most profitable, and how to scale sales without losing money.

The future of TikTok eCommerce belongs to sellers who adopt these tools early. By 2025 and beyond, profit tracking will not just show numbers, it will guide sellers to make smarter moves.

Conclusion

Profit and Loss (P&L) tracking is not just about math. It’s about knowing if your TikTok Shop is really making money. At the end of the month, many sellers look at their bank balance and realize they’re losing more than they’re earning, and by then, tracking down where the money went becomes a hassle. With Kixmon, you don’t have to wait until it’s too late. You can check your dashboard daily, see every financial metric in one place, and make informed decisions instantly. This makes it easier to spot exactly where you’re bleeding money and take action before it impacts your bottom line.

And here’s the truth: every hidden fee you miss is profit slipping away. Stop guessing with spreadsheets, Kixmon shows your true TikTok Shop margins in real time, so you never lose money blindly again.

👉 Try Kixmon free for 14 days today (no credit card needed) and take full control of your TikTok Shop profits.

FAQs

1. What does Profit & Loss (P&L) mean for TikTok Shop sellers?

It shows the money you make from sales after subtracting costs like product expenses, TikTok fees, ads, shipping, and commissions.

2. Why should TikTok Shop sellers track P&L in 2025?

Because costs and competition are higher in 2025. Tracking P&L helps sellers know their real profit instead of relying only on sales numbers.

3. Does TikTok Shop show P&L in its dashboard?

No. TikTok only shows sales and payouts, not the full profit. Kixmon is needed to see the complete picture.

4. How can I calculate P&L for my TikTok Shop?

Use the formula:

Profit = Sales – (COGS +Promos+ Referral Fee + Ads + Shipping + Commissions + Other Costs)

Or use Kixmon to do it automatically.

5. What tool helps TikTok Shop sellers track P&L easily?

Kixmon shows real-time profits, hidden fees, and clear breakdowns from sales to every expense, so sellers always know their true numbers.