TikTok Shop Glossary: Every Term You Need to Know in 2026 | Z MEDIA

TikTok Shop has its own language. GMV Max, ACE, TAP, AIGC, FBT, Shop Score, LIVE Score. If you are running TikTok Shop or evaluating it for your brand, you need to know what these terms mean and why they matter. Here is every term worth knowing, explained without the jargon.

A

ACE (Ads Creative Engine): TikTok's AI powered tool that helps sellers create ad creatives within Seller Centre. ACE can generate product videos from product images, write script variations, and produce multiple creative versions for GMV Max testing. Useful for brands that need volume creative fast.

Ad Group: A set of ads within a GMV Max campaign that share targeting and budget settings. In the current GMV Max structure, ad groups are largely automated, with TikTok controlling targeting and bid optimisation.

Affiliate: A TikTok creator who promotes your product in exchange for a commission on each sale they generate. Affiliates post content featuring your product with a tagged product link. When a viewer buys through that link, the affiliate earns their commission.

Affiliate Commission: The percentage of the sale price you pay to an affiliate creator for each sale they generate. Typical rates are 10 to 25% depending on product category. This is set by the seller and can vary between open and targeted plans.

AIGC (AI Generated Content): Content produced using artificial intelligence tools. On TikTok Shop, AIGC refers to product videos, scripts, voiceovers, and creative assets generated by AI rather than filmed by humans. AIGC is increasingly used for volume content production at 5 to 10 GBP per video.

AOV (Average Order Value): The average amount spent per transaction on your TikTok Shop. Calculated by dividing total revenue by total number of orders. TikTok Shop AOV in the UK typically ranges from 18 to 35 GBP depending on product category.

B

Batch Shooting: A content production method where multiple video variations are filmed in a single session. A typical batch shoot produces 20 to 30 video variations in 4 hours. Content engines use batch shooting to produce 300+ videos per month cost effectively.

Brand Zone: A branded section within TikTok Shop search results that displays your brand's products, story, and featured content. Brand Zone is available to brands with verified trademark registrations.

C

Click Through Rate (CTR): The percentage of video viewers who click the product link to visit your TikTok Shop product page. Target CTR for TikTok Shop videos is 2 to 5%. Below 1% indicates a weak CTA or low product interest.

Content Engine: A systemised production process for creating high volume short form video content at low per unit cost. A typical content engine produces 100 to 300+ videos per month at 5 to 10 GBP per video through batch shooting, modular video structures, and data driven creative cycles.

Conversion Rate: The percentage of product page visitors who complete a purchase. TikTok Shop average conversion rate from video content is 2 to 5%. From LIVE shopping sessions, 8 to 15%.

CPA (Cost Per Acquisition): The total cost to acquire one customer. On TikTok Shop, CPA includes ad spend (through GMV Max), any affiliate commission, and platform fees, divided by the number of customers acquired.

Creator Marketplace: TikTok's platform connecting brands with creators for paid partnerships and affiliate collaborations. Brands can search creators by category, follower count, engagement rate, and TikTok Shop performance history.

D

Daily Budget: The maximum amount you are willing to spend per day on GMV Max campaigns. GMV Max has minimum daily budget requirements that vary by market. In the UK, minimum daily budget is typically 20 to 50 GBP depending on campaign type.

F

FBT (Fulfilment by TikTok): TikTok's fulfilment service where TikTok handles storage, picking, packing, and shipping for sellers. Similar to Amazon FBA. Available in the UK with fees based on product size and weight. FBT products get preferential display in TikTok Shop as they guarantee faster delivery.

Flash Sale: A limited time promotional event on TikTok Shop with discounted pricing. Flash sales get additional algorithmic distribution and can drive significant GMV spikes. TikTok Shop runs platform wide flash sale events similar to Amazon Prime Day.

For You Feed (FYF): TikTok's main content feed driven by algorithmic recommendations. This is where most TikTok Shop product discovery happens. Videos appearing on the For You Feed are selected based on user interests, engagement history, and content performance signals.

G

GMV (Gross Merchandise Value): The total value of all products sold through your TikTok Shop before returns and cancellations. GMV is the primary performance metric for TikTok Shop sellers. It includes all revenue from video shopping, LIVE shopping, and Shop tab purchases.

GMV Max: TikTok Shop's primary advertising product. GMV Max is an automated campaign type that controls bidding, audience targeting, and creative distribution across TikTok's entire surface area (For You Feed, search, LIVE, Shop tab). It replaced all previous individual ad formats in 2025. GMV Max needs 50+ creatives to perform optimally and works best with 100+ creatives and high diversity. Read our full guide: GMV Max Content Strategy.

H

Halo Effect: The positive impact TikTok Shop content has on sales across other ecommerce channels (Amazon, DTC, retail). Brands see 15 to 30% uplift in Amazon sales during periods of high TikTok Shop activity. The halo effect occurs because consumers discover products on TikTok but often purchase on their preferred platform. Read our full analysis: The TikTok Halo Effect on Ecommerce.

Hook: The first 1 to 3 seconds of a TikTok video. The hook determines whether a viewer watches or scrolls. 80% of TikTok users decide within 1.5 seconds. Effective hooks include bold claims, questions, pattern interrupts, shocking stats, and direct problem callouts.

L

LIVE Shopping: Real time selling on TikTok where a host demonstrates products and viewers can purchase directly from the LIVE stream. LIVE shopping converts at 8 to 15% with 30 to 50% higher AOV compared to standard video content. Top performing brands run 2 to 4 LIVE sessions per week.

LIVE Score: A metric within TikTok's Seller Centre that measures the quality and engagement of your LIVE shopping sessions. Factors include viewer retention, engagement rate, conversion rate, and average session length. Higher LIVE Scores result in better algorithmic distribution for future LIVE sessions.

O

Open Plan: An affiliate programme setting where any TikTok creator can request a sample and promote your product. Open plans generate higher volume of affiliate applications but lower quality on average. Compare with Targeted Plan.

Owned Content: Video content produced directly by the brand or their production partner (as opposed to affiliate or creator content). Owned content has no ongoing commission cost and gives the brand full creative control. It is the primary content type for GMV Max campaigns in a zero commission content engine model.

P

PDP (Product Detail Page): The product listing page on TikTok Shop where buyers see product images, description, price, reviews, and shipping information. PDP optimisation (images, copy, reviews, pricing) directly impacts conversion rates. Optimised PDPs convert 2 to 3x higher than basic listings.

Platform Fee: The transaction fee TikTok charges on every sale made through TikTok Shop. In the UK, platform fees can reach up to 9% depending on product category. This is charged on top of any affiliate commission.

R

ROAS (Return on Ad Spend): The revenue generated for every pound spent on GMV Max advertising. Calculated as GMV divided by ad spend. A 4x ROAS means 4 GBP in revenue for every 1 GBP in ad spend. Target ROAS varies by margin but most brands aim for 3 to 5x on GMV Max.

S

Seller Centre: TikTok Shop's backend management platform where sellers manage products, orders, shipping, finances, and analytics. Accessible at seller-uk.tiktok.com for UK sellers.

Shop Score: A composite metric that measures your overall seller performance on TikTok Shop. Factors include order fulfilment rate, shipping speed, customer reviews, response time, and policy compliance. Higher Shop Scores result in better product visibility and lower platform fees.

Shop Tab: The dedicated shopping section within the TikTok app where users can browse products, categories, and deals. Products appear in the Shop Tab based on relevance, popularity, and seller performance metrics.

T

TAP (TikTok Affiliate Programme): The system within TikTok Shop that connects sellers with affiliate creators. TAP allows sellers to set commission rates, manage creator applications, send samples, and track affiliate performance.

Targeted Plan: An affiliate programme setting where you invite specific creators to promote your product, rather than accepting any creator who applies. Targeted plans give you more control over creator quality and are more cost effective than open plans because you reduce sampling waste.

U

UGC (User Generated Content): Content created by real users or creators that feels authentic and unscripted. On TikTok Shop, UGC style content (filmed on phone, natural setting, genuine reactions) consistently outperforms polished brand content. UGC can be sourced through affiliates, commissioned from creators, or produced in house with a lo fi aesthetic.

V

Video Shopping Ads (VSA): The legacy ad format for TikTok Shop that has been absorbed into GMV Max. VSAs showed shoppable product videos in the For You Feed with a product card overlay. Now handled automatically within GMV Max campaigns.

VTR (View Through Rate): The percentage of viewers who watch past the first 3 seconds of your video. Target VTR is 40%+. VTR is the primary indicator of hook effectiveness. Below 30% VTR means the hook needs to be replaced.

Z

Zero Commission Model: A content strategy where the majority of TikTok Shop GMV is driven by owned content (no affiliate commission) distributed through GMV Max (paid distribution). The zero commission model dramatically improves unit economics at scale because content production costs are fixed while affiliate commissions are variable and never decrease. Read our full analysis: The Real Cost of TikTok Shop Affiliate in 2026.

Frequently Asked Questions about TikTok Shop Terminology

What does GMV mean on TikTok Shop?

GMV stands for Gross Merchandise Value. It is the total value of all products sold through your TikTok Shop before returns and cancellations. GMV is the primary performance metric for TikTok Shop sellers and includes revenue from video shopping, LIVE shopping, and Shop tab purchases.

What is GMV Max on TikTok Shop?

GMV Max is TikTok Shop's primary advertising product. It is an automated campaign type that controls bidding, audience targeting, and creative distribution across TikTok's entire platform. It replaced all previous individual ad formats in 2025 and works best with 50+ creatives.

What is AIGC on TikTok Shop?

AIGC stands for AI Generated Content. On TikTok Shop, it refers to product videos, scripts, voiceovers, and creative assets produced using AI tools rather than traditional filming. Brands use AIGC to produce volume content at 5 to 10 GBP per video for GMV Max testing.

What are TikTok Shop platform fees?

TikTok Shop charges a platform fee of up to 9% on every transaction, depending on product category. This fee is charged on top of any affiliate commission and is deducted from the seller's payout automatically.

What is FBT on TikTok Shop?

FBT stands for Fulfilment by TikTok. It is TikTok's fulfilment service where TikTok handles storage, picking, packing, and shipping for sellers. Similar to Amazon FBA. Products using FBT get preferential display in TikTok Shop search results.