Fulfillment speed determines survival on the platform. The platform operates on a rigid delivery timeline that punishes slow logistics. Merchants must choose between two core operating models: Fulfilled by TikTok (FBT), where inventory sits inside TikTok partner warehouses, or Shipped by Seller (SBS), where the merchant handles picking, packing, and carrier handoffs internally.
Under the SBS framework, sellers must ship orders and ensure a carrier scan occurs within two business days. The platform monitors the Late Dispatch Rate (LDR), auto-canceling any order that fails to show an initial tracking event within seven calendar days. Surpassing an LDR of 4% triggers immediate punitive measures, including daily order caps that can strangle a viral product overnight.
| Operational Dimension | Shipped by Seller (SBS) | Fulfilled by TikTok (FBT) |
|---|---|---|
| Dispatch SLA Requirement | Carrier scan within 48 business hours | Automated internal picking and carrier dispatch |
| Inventory Control | Direct oversight inside merchant 3PL | Allocated forward deployment in partner hubs |
| Direct Shipping Surcharges | Negotiated commercial rates via USPS/UPS | Subsidized pick, pack, and transport schedules |
| Vulnerability to Order Caps | High risk if carrier scans fail to register | Low risk; fulfillment metrics protected by platform |
Carriers must be integrated directly into the portal. If a regional freight carrier lacks automated API tracking links back to the Seller Center, those dispatches register as unfulfilled orders. Tracking integrity directly feeds the Valid Tracking Rate (VTR), which must remain above 95% to maintain active merchant status.
