Label each number before comparing reports
Use the definitions in the actual report because GMV and Net Sales fields can have specific discount, refund or shipping conventions. Preserve those original fields and create clearly named accounting and management measures instead of renaming everything Revenue.
TokMargin's contribution margin divides contribution by gross item sales plus buyer-paid shipping before refunds. Gross product-sales ROAS excludes buyer-paid shipping. Those denominators are explicit planning conventions, not a claim that every TikTok report uses an identical definition.
| Measure | What it describes | What it does not establish |
|---|---|---|
| Gross sales / GMV field | Transaction value under the report's definition | Retained accounting profit |
| Revenue excluding VAT | Sale amount after the applicable output-VAT split | Cash already received |
| Settlement / payout | Platform financial deductions and transfers | All costs paid outside the platform |
| Order contribution | Revenue less entered direct costs | Corporate net profit after all overhead and taxes |
Illustrative bridge from €120 gross sales to €19.20 contribution
Assume a €120 French sale with 20% VAT, no buyer-paid shipping, no returns and no coupons. Revenue excluding VAT is €100. If platform commission is €10.80 and creator commission €12, a simplified settlement before other platform adjustments is €97.20 of gross cash value.
Now account for the €20 output-VAT component, €40 goods, €8 fulfilment and packaging and €10 advertising paid outside that simplified settlement. Contribution is €19.20. The example illustrates the bridge; actual reports may deduct some of those costs within the settlement, in which case they must not be subtracted again.
Illustrative contribution = €97.20 simplified settlement − €20 output VAT − €40 goods − €8 fulfilment − €10 ads = €19.20Separate profit timing from cash timing
Goods and advertising can be paid before proceeds are released, while a later refund can affect an order whose original payout already arrived. Settlement periods and payment status therefore matter for working capital even if contribution is positive.
Use a cash forecast for expected payment and expense dates, and an order-contribution report for the economics of the sale. These views should reconcile but need not show the same period total at every moment.
Avoid the two common double counts
Do not deduct a platform shipping or creator expense twice if it already reduced the payout you are using as the bridge. Equally, do not omit a warehouse invoice or advertising charge simply because it appears outside Seller Center.
Inventory purchases also require care. Buying stock for future sales is a cash outflow, while the order model assigns the relevant product cost to the unit sold. Keep unsold stock and order cost distinct rather than charging all replenishment cash to one day's sales.
- Start with the original customer transaction.
- Identify the tax component and platform deductions.
- Mark which direct expenses are already in settlement.
- Add only the remaining relevant costs paid elsewhere.
- Track payment dates separately from order contribution.
- Reconcile later refunds to the original order.
Which measure should guide the next decision?
Use contribution to evaluate price and acquisition spend, cash timing to plan replenishment and obligations, and the wider accounts to assess business net profit. No single dashboard number can safely answer all three questions.
If gross sales grow while contribution per order falls, inspect the product and channel mix before celebrating or rejecting the growth. Total contribution, operational load and cash requirements can move in different directions.