TikTok Offers Enhanced Shops Promotion Program

02/05/26
Source: Social Media Today – Latest News by Andrew Hutchinson. Read the original article

TL;DR Summary of TikTok’s New Smart Promotion Program for Shop Merchants

TikTok’s Smart Promotion program offers lower fees and amplified product exposure to qualified Shop merchants. It guarantees a 5x ROI by co-investing marketing funds using advanced algorithms. Eligibility requires maintaining a Shop Performance Score (SPS) of 3.5+ and fulfilling at least 30 orders in the past 90 days. This program aims to boost in-app sales and simplify promotion management for sellers.

Optimixed’s Overview: How TikTok’s Smart Promotion Revolutionizes Merchant Marketing

Introduction to TikTok’s Enhanced Merchant Promotion

TikTok has introduced its Smart Promotion program, designed to replace the previous Co-funded Promotion model starting January 20, 2026. This initiative leverages TikTok’s proprietary algorithms to strategically allocate marketing investments, aiming to maximize merchants’ returns and drive substantial sales growth.

Key Benefits of the Smart Promotion Program

  • Guaranteed 5x ROI: TikTok promises a fivefold return on marketing investments by co-investing alongside sellers.
  • Lower Fees: A simplified 3.5% transaction fee structure reduces costs for merchants.
  • Enhanced Product Exposure: Increased visibility through targeted promotions, product coupons, and new customer discounts.
  • Automated Rewards & Time Savings: The platform automates point rewards and promotional management, easing operational burdens for sellers.

Eligibility and Performance Requirements

To qualify for the program, merchants must meet TikTok’s Shop Performance Score (SPS) criteria, which evaluates:

  • Product satisfaction
  • Order fulfillment quality
  • Customer service effectiveness

Merchants need to have completed at least 30 orders in the last 90 days and maintain an SPS of at least 3.5 out of 5. This threshold ensures TikTok promotes high-quality sellers and optimizes promotional ROI.

Strategic Implications for Merchants

By participating in Smart Promotion, sellers can benefit from TikTok’s marketing expertise and algorithm-driven fund allocation, potentially driving significant growth in sales and brand visibility. However, merchants must sustain strong sales metrics and customer service to maintain eligibility, making it vital for businesses to focus on quality and performance.

For small and medium-sized businesses, this program represents an opportunity to tap into TikTok’s vast user base with reduced risk and simplified promotion management. Aligning with TikTok’s in-app shopping growth strategy could lead to enhanced engagement and revenue.