05/18/2026
Here's a number that should stop you cold. Amazon's referral fee on a $40 product in the health and personal care category: 8%. Add FBA fulfillment — call it $4.50 to $6.00 per unit depending on size and weight. Add storage. Add the cost-per-click you're paying just to stay visible.
On Amazon, your costs stack before you make a single sale. You're paying to exist. TikTok Shop flips the script. You only pay when you sell. That distinction can make or break margins.
Take two sellers. Same product, different platforms. One's seeing margin squeeze on Amazon, the other's thriving on TikTok.
Three moves to make it work anywhere:
1. Run unit economics on your top SKUs before listing.
2. Pull real numbers — no estimates, no guesses.
3. Consider TikTok Shop for the right SKUs, especially priced $25 to $75.
Unit economics aren't just numbers. They're your business lifeline.