On July 8, 2026, TikTok Shop updated its deposit policy for the US market. The previous structure was a flat $1,500 base deposit that most sellers were familiar with. The new structure is a three-component model: base deposit plus category deposit plus risk scenario deposit, with the total amount varying dramatically based on the seller’s category and operational history Cross-border sellers shipping into the US are the most affected, because the category deposit is currently charged only to cross-border fulfillment sellers
This is not a fee change. It is a deposit policy change. The deposits are held by the platform as security against potential enforcement actions, refunds, and disputes. They are not operational costs in the traditional sense, but they are cash that the seller must have available, and that changes the working capital requirements for sellers entering or scaling in the US market
What changed in the deposit structure
The old policy was simple: $1,500 USD as a base deposit for all US-market sellers. Most sellers paid this once when they opened their store and never thought about it again. The new policy introduces three components that are summed to determine the total deposit
Base deposit ($1,500 USD This is the same as the old policy. All US-market sellers pay this flat amount when they open their store or upgrade their store tier. It functions as a baseline security deposit
Category deposit This component is charged only to sellers using cross-border fulfillment for the US market. The amount is calculated based on the highest-risk category currently in the seller’s product catalog and the historical sales volume of that category. Higher-risk categories (electronics, supplements, children’s products) have higher category deposits. The exact amount is calculated by TikTok Shop and disclosed to the seller during the deposit preview
Risk scenario deposit This is a variable component ranging from $500 to $10,000 depending on the seller’s operational history. The deposit is increased when the seller has accumulated violations, return rate spikes, dispute escalations, or other operational anomalies. The deposit is recalculated every 90 days based on the most recent operational data. If the seller’s operational performance improves, the risk scenario deposit can be reduced
What the new deposit structure means for cross-border sellers
Cross-border sellers are hit hardest because they pay the base deposit plus the category deposit. A cross-border seller shipping consumer electronics into the US could end up paying a total deposit of $5,000-$8,000 when the category deposit and a moderate risk scenario deposit are included. For a seller whose working capital is already tied up in inventory, this is a meaningful cash burden
The deposit is refundable when the seller closes their account, but only after all pending orders, returns, and disputes are settled. Sellers who need to close their account quickly (e.g., to exit a category) often have to wait 60-90 days for the deposit refund, during which the cash is unavailable
How to budget for the deposit increase
Step one: check your current deposit in Seller Center under Account Settings → Deposit. The deposit preview is available, and it shows your base deposit, category deposit, and risk scenario deposit separately. The preview allows you to see what your total deposit requirement is and how it was calculated
Step two: if you are a new seller, plan to have $3,000-$5,000 USD available for the deposit before opening your store. This covers the base deposit plus a typical category deposit plus a moderate risk scenario deposit
Step three: if you are an existing seller, check your deposit preview to see if your total deposit has changed. Sellers who recently expanded into a higher-risk category or who have accumulated operational violations may see the deposit increase. The increase is applied automatically and is not optional
How to keep the risk scenario deposit low
The risk scenario deposit is the only component of the new structure that is variable based on operational performance. The four metrics that drive risk scenario deposit calculation are: AHR score, violation points history, return rate spikes, and dispute escalation rate
The biggest lever is the AHR score. Sellers with AHR scores above 300 typically see the risk scenario deposit at the lower end of the $500-$1,000 range. Sellers with AHR scores below 150 typically see risk scenario deposits of $5,000-$10,000. The 90-day recalculation means operational improvements can lower the deposit over time, but operational missteps can also raise it
The second-biggest lever is violation points history. Sellers with a clean violation record typically see lower risk scenario deposits. Sellers with multiple violations (even if the violations were minor) see higher deposits. The way to keep this low is straightforward: avoid policy violations. The AHR rollout has made this harder, because category-relative comparison means even borderline metrics can trigger score drops
Frequently asked questions
Is the deposit refundable when I close my account
Yes, but only after all pending orders, returns, and disputes are settled. The typical refund timeline is 60-90 days after account closure. Sellers who have ongoing disputes or pending refunds will have to wait until those are resolved before the deposit is refunded
Does the category deposit apply to domestic US sellers too
No. The category deposit is currently charged only to cross-border fulfillment sellers. Domestic US sellers who store inventory in FBT warehouses and ship from within the US do not pay the category deposit. This creates a working capital advantage for sellers with US-based inventory, which is one of the reasons TikTok Shop has been pushing sellers toward FBT
Can I pay the deposit in installments
No. The full deposit amount must be paid when the deposit is calculated. There is no installment plan option. Sellers who cannot afford the full deposit should consider whether the US market is the right entry point for their business at this time
How often is the risk scenario deposit recalculated
Every 90 days, based on the most recent operational data. The recalculation looks at AHR score, violation history, return rate, and dispute rate. Sellers who improve their operations between recalculations will see the deposit decrease at the next recalculation point
Does a low AHR score guarantee a high risk scenario deposit
Not always, but strongly correlated. AHR score below 150 typically results in risk scenario deposits of $5,000-$10,000. AHR score above 300 typically results in risk scenario deposits of $500-$1,000. The correlation is not perfect, but it is consistent enough to make AHR the dominant variable in risk scenario deposit calculation
What happens if I do not pay the deposit increase
The seller account is suspended until the deposit is paid. Sellers with a pending deposit increase have a 30-day grace period to pay the additional amount before suspension. The suspension blocks new order processing, but does not affect existing orders. Sellers who cannot pay the deposit within the grace period should contact TikTok Shop support to discuss payment plan options before the suspension takes effect
