TikTok Shop Launches Smart Promotion Program, Promising 5x ROI

Ebrun Exclusive, February 11th – TikTok Shop has recently introduced a new promotional opportunity for merchants: the "Smart Promotion" program. This initiative aims to attract more retailers to the platform by offering increased product exposure and reduced fees, thereby enhancing merchants' sales performance.

According to TikTok Shop's official introduction, the Smart Promotion program launched on January 20, 2026, replacing the previous Co-funded Promotion program. The program utilizes TikTok's algorithm to co-invest marketing funds, promising a 5x return on investment (ROI) and driving growth in Gross Merchandise Volume (GMV).

During Black Friday, participating products saw a GMV increase of approximately 70%. Additionally, the program offers benefits such as a simplified fee of 3.5%, automatic reward points, enhanced product visibility, and time savings for merchants.

To participate, merchants must maintain a certain level of sales activity. The marketing funds co-invested by TikTok Shop and merchants are strategically allocated by the platform's system to various promotional activities, including product coupons and new customer discounts. The platform uses advanced algorithms to manage all investments to maximize sellers' ROI.

Participating merchants must also meet a certain Shop Performance Score (SPS) requirement, which includes completing at least 30 orders in the past 90 days and maintaining a comprehensive rating of 3.5 or higher (out of 5). The SPS is based on product satisfaction, fulfillment performance, and customer service to ensure the quality of participating merchants' products.

For small and medium-sized enterprises, maintaining this score threshold may pose challenges but also helps ensure the efficiency and effectiveness of promotional campaigns. Overall, if merchants are willing to let TikTok Shop manage their promotional activities to a certain extent, the Smart Promotion program is expected to be an effective tool for boosting product exposure and sales.

Ebrun will continue to track updates on this development. For more information related to this article, please scan the QR code to follow the author on WeChat.