1. Overview

1.1 Introduction

The TikTok Shop Seller Settlement Policy has been formulated with the express purpose of

• Building a positive shopping environment on TikTok Shop; and
• Providing a shopping experience that consumers can have confidence in.

All local sellers who offer products for sale via TikTok Shop must abide by this policy and our Merchant Terms of Service.

1.2 Scope

The TikTok Shop Seller Settlement Policy describes our policies regarding the duration between the delivery of an order and the day when the seller is paid for the order. The duration of this period varies for different sellers based on different criteria, which are detailed below.
Important Note: These guidelines are only applicable for local to local transactions. Sellers are responsible for ensuring that the listing, sale, and provision of products to customers via TikTok Shop comply at all times with applicable laws and regulations. These guidelines are intended to help facilitate seller understanding of settlement rules. They are not exhaustive and not intended as legal advice. We encourage sellers to consult their legal advisers if they have questions about the laws and regulations concerning their products.
Our policies and guidelines are updated periodically. Sellers are responsible for checking this page and TikTok Shop Academy regularly to ensure that they comply with our current guidelines. Sellers will also be notified of any policy changes through their Seller Center.

2. Settlement Period

The payment settlement period (or settlement period) is the amount of time from the day an order is
delivered, to the day funds are released to a seller for any completed order(s). There are three types of settlement periods that can be applied to a seller's shop:
Note: We reserve the right to trial different settlement periods on a limited time basis regardless of the criteria mentioned in this policy. Sellers will be notified via announcements on Seller Center and/or e-mails. Please monitor your Seller Center and email regularly to stay updated with any changes. Please note that there may be limited instances where sellers may not be informed of these changes to protect the integrity of our processes.

3. Settlement Period Types

3.1 Standard Settlement Period

Sellers who have a Standard Settlement Period applied to their shop will have a settlement period of 8 calendar days for their orders, which can be broken down as (T+7)+1, where:

• T refers to the day when the order is delivered to the buyer.
• +7 refers to 7 calendar days after the order is delivered to the day the order is considered completed.
• +1 refers to 1 calendar day between the day when order is considered completed to the day when funds are released to the Seller Center.

On the 8th day, funds from all completed orders can be seen under the Available to Withdraw status on TikTok Shop Seller Center's financial menu. Sellers can then withdraw the funds from TikTok Shop to their respective bank account(s).

3.2 Express Settlement Period

Sellers who have an Express Settlement Period applied to their shop have a settlement period of 3 calendar days for their orders, which can be broken down as (T+2)+1, where:

• T refers to the day when the order is delivered to the buyer.
• +2 refers to 2 calendar days after the order is delivered to the day the order is considered completed.
• +1 refers to 1 calendar day between the day the order is completed and the day funds are released to the Seller via the Seller Center.

On the 3rd day, funds from completed orders can be seen under Available to Withdraw status on TikTok Shop Seller Center's financial menu. Sellers can withdraw their funds from TikTok Shop to Seller's bank account.

3.3 Extended Settlement Period

Sellers who have an Extended Settlement Period applied to their shop will have a settlement period of 15 calendar days for their orders, which can be broken down as (T+14)+1, where:

• T refers to the day when order is delivered to the buyer
• +14 refers to 14 calendar days after the order is delivered to the day the order is considered completed
• +1 refers to 1 calendar day between the day when order is considered completed to the day when funds are released to the Seller Center

On the 15th day, funds from completed order can be seen under Available to Withdraw status on TikTok Shop Seller Center's financial menu and Seller can withdraw their funds from TikTok Shop to Seller's bank account.

4. TikTok Shop's Criteria for Applying Settlement Period Types

4.1 Standard Settlement Period Criteria

TikTok shop will apply the Standard Settlement period to all sellers that are not part of TikTok Shop Mall by default. An Extended or Express Settlement may be applied based on a seller's shop performance as detailed in the sections below or based on the discretion of TikTok Shop.
If your shop is part of TikTok Shop Mall and fulfils the criteria of Express Settlement Period, then Express Settlement will apply. If not, then Extended Settlement will apply.

4.2 Express Settlement Period Criteria

An Express Settlement Period will be applied to a seller's shop if they meet the following criteria in a given month:

• Note: If a seller who previously qualified for Express Settlement fails to meet the criteria above in the subsequent month, a Standard Settlement period will be applied to their shop.
• If sellers fail to meet the above criteria at any point during the month, they may be moved to the Standard Settlement Period. Additionally, if they engage in violations of our platform policies/guidelines that demonstrate risky or undesired behavior, TikTok Shop reserves the right at its sole discretion to apply a Standard Settlement Period or an Extended Settlement Period.

4.3 Extended Settlement Period Criteria

An Extended Settlement Period will be applied to a seller's shop if they are part of TikTok Shop Mall in a given week and fail to qualify for Express Settlement in that month's check.

5. Impact on Creator Commission Payouts

In accordance with the Creator Terms of Use, a creator can only receive their commission after the seller's orders are settled. As such, the payout of creator's commissions will depend on the settlement period type of the seller.

6. Viewing Your Settlement Period

Sellers can check which Settlement Period that is applied to their shop by visiting the Shop Health page within Seller Center. Settlement Periods for each order can also be checked by heading to the 'To Settle' page under the Finance > Transactions tab in the Seller Center.