Profit & Loss

What is this page?

The Profit & Loss (P&L) page is your complete financial statement for your TikTok Shop. It organizes every dollar flowing in and out of your business into a structured tree -- Revenue at the top, then Expenses, and finally your Profit at the bottom. You can view this breakdown by day, week, month, quarter, or year to spot trends and understand exactly where your money goes.

Think of it as a financial report card: Revenue tells you how much came in, Expenses tell you how much went out, and Profit tells you what you kept.

Understanding the P&L Structure

The P&L page presents metrics in a hierarchical tree structure. Each parent row is the sum of its children. The tree flows from top to bottom:

GMV (with TikTok Co-funding)
  - GMV
  - Platform Subsidy

Revenue
  - Gross Sales
  - Discounts (subtracted)
  = Net Sales

Cost of Goods
  - COGS
  = Gross Profit (Net Sales - COGS)

Operating Expenses
  - Net Shipping
      - Shipping Revenue
      - Shipping Fees
      - FBT Fees
  - Fees & Taxes
      - Referral Fee
      - Platform Commission
      - Co-funded Promotion Fee
      - Other Fees
  - Affiliate Expenses
      - Sales Commission
      - Ads Commission
  - Sample Costs
  - Refunds & Returns
  - Manual Adjustments
      - Manual Income (adds to profit)
      - Manual Expenses (subtracts from profit)
      - FBS Manual Shipping
  = Operating Profit

Below the Line
  + Platform Subsidy
  - Ad Spend
      - Gross Ad Spend
      - Ad Credits
  = Net Profit

Performance
  - Margin
  - ROI
  - Unique Orders
  - Units

Key Metrics on This Page

Revenue

Gross Sales

• What it shows: Total product sales at the original listed price before any discounts.
• Formula: Sum of (Original Price x Quantity) across all orders
• Important: This uses the full original price. If you sold a $25 item with a $5 discount, Gross Sales records $25 for that item. The $5 discount is tracked separately in the Discounts row.

Shipping Revenue

• What it shows: The total amount customers paid for shipping on their orders.
• Important: This is what customers were charged for shipping, not what it actually cost you to ship. The difference between what the customer paid and your actual shipping cost is reflected in the Net Shipping expense row below.

Discounts

• What it shows: Total seller-initiated discounts applied to orders.
• Important: Only includes discounts funded by you (the seller). TikTok platform discounts from co-funded promotions are not included here -- TikTok's contribution appears as Platform Subsidy, and your share of co-funded campaigns appears under Platform Fees as Co-funded Promotion Fee.