Baby example
$34.99 baby product profit margin example
Trust matters more than a cute video angle. The numbers below are fictional, but the cost stack is the same one a TikTok Shop seller should check before ordering inventory.
Example numbers
| Selling price | $34.99 |
|---|---|
| Product cost | $9.40 |
| Shipping + packaging | $4.80 |
| Platform/payment fees | $3.15 |
| Creator commission | $6.30 |
| Ad spend per order | $5.00 |
| Return reserve | $2.25 |
| Estimated profit | $4.09 |
| Estimated margin | 11.7% |
What the math says
Be conservative. If the product needs safety claims to sell, it is probably not a beginner test.
A useful rule: do not judge the product from gross margin alone. Put creator commission, ad spend, payment/platform fees, shipping, packaging, and return reserve into one view. That is where weak products usually reveal themselves.
Test notes
- Keep claims plain and supported by the product page.
- Use clear photos of size, materials, and included parts.
- Do not scale until support questions feel predictable.
Run your version
Use a larger refund reserve in the calculator. Replace every example number with your supplier quote, packed shipping cost, expected creator cut, and your first ad budget.
Sources and notes
The chart above is an original ShopROAS visual. No product photo, creator video, or third-party image is used on this page.