Policy Reference
TikTok Shop FBT Metric Exemptions Explained (2026)
Which Metrics Actually Apply to Each Fulfillment Method?
“FBT makes all your metrics go away.” That’s the rumor. It’s wrong. Some metrics are fully exempt. Some receive partial formula treatment. Some still apply exactly as before. This is the canonical reference.
Know Exactly Which Metrics Still Apply to Your Account
Bookmark this page. Every post-FBT article links back here because this is the single source of truth for metric applicability.
Start 14-day free trialFor the full transition timeline, daily checklists, and week-by-week operational guide, see our complete post-FBT compliance transition guide.
Which TikTok Shop compliance metrics does FBT actually exempt sellers from?
According to TikTok’s Fulfillment Policy and LDR Guide (updated February 2026), Fulfilled by TikTok does not exempt sellers from all compliance metrics. FBT provides full exemption from two metrics: On-Time Delivery Rate (OTDR) and Valid Tracking Rate (VTR). TikTok controls carrier routing, delivery timing, and tracking for FBT orders, so sellers are not held responsible for those outcomes. For Late Dispatch Rate (LDR) and Seller-Fault Cancellation Rate (SFCR), FBT provides partial formula exemption, not full immunity. The metric formulas still calculate using FBT data, but FBT orders are excluded from the penalty-counting numerator while remaining in the total-orders denominator. Account Health Rating (AHR, scored on a 0-1000 scale) and listing violations apply identically across all fulfillment methods with no exceptions whatsoever. As of February 2026, the three status types in the metric applicability matrix are “Exempt from evaluation” (metric not assessed), “Partial formula exemption” (metric calculated but formula treats FBT orders differently), and “Still applies” (no exceptions or adjustments). Sellers who assume FBT provides blanket immunity risk AHR point deductions from violations they did not expect.
The Complete Metric Applicability Matrix
This is the table every post-FBT seller needs. As of February 2026, verified against TikTok Seller University documentation:
| Metric | Threshold | FBT | Upgraded TikTok Shipping | Collections by TikTok (CBT) |
|---|---|---|---|---|
| LDR (Late Dispatch Rate) | ≤4% recommended; >10% enforcement | Partial formula | Fully applies | Fully applies |
| OTDR (On-Time Delivery Rate) | ≥80% | Exempt | Conditional relief | Conditional relief |
| VTR (Valid Tracking Rate) | ≥95% | Exempt | Exempt | Exempt |
| SFCR (Seller-Fault Cancellation Rate) | ≤2.5% | Partial formula | Fully applies | Fully applies |
| AHR (Account Health Rating) | 0-1000 scale | Applies | Applies | Applies |
| Listing violations | Per policy | Applies | Applies | Applies |
Three categories. Learn them:
Exempt = metric does not apply to your orders under this method. Zero impact.
Partial formula = your orders are excluded from the numerator (bad events) but included in the denominator (total orders). The math helps you, but the metric doesn’t disappear.
Fully applies = same rules as Seller Shipping. You’re responsible.
What does partial formula exemption mean for TikTok Shop LDR under FBT?
According to TikTok’s LDR Guide (updated February 6, 2026), partial formula exemption for Late Dispatch Rate means the LDR formula treats FBT orders differently but does not remove the seller from the calculation. The formula is: LDR equals the number of non-FBT orders dispatched late divided by total orders that should have been dispatched within SLA (including FBT orders) multiplied by 100. Two things happen: the numerator includes only non-FBT late dispatches, so if TikTok handles dispatch via FBT and it is late, that does not count against the seller; but the denominator includes all orders including FBT, which means FBT volume inflates the denominator and can actually lower the LDR percentage. However, this only helps if non-FBT orders are dispatched on time. A seller running 90% FBT and 10% Upgraded TikTok Shipping where 4 of 100 non-FBT orders dispatch late still reaches 4% LDR at threshold even though total volume is 1,000. As of February 2026, there is a noted discrepancy in TikTok documentation on whether the denominator includes FBT orders; sellers should verify in Seller Center.
LDR: Partial Formula Treatment Under FBT
What LDR measures: The percentage of non-FBT orders not reaching “In Transit” status (carrier scan) within the 2-business-day dispatch SLA.
LDR = (Non-FBT late orders) ÷ (Total dispatch-eligible orders, including FBT)
FBT orders are excluded from the numerator — they can’t be “late” because TikTok handles fulfillment. But FBT orders stay in the denominator, inflating your total order count.
A seller processing 1,000 orders/month who moves 900 to FBT has all 1,000 orders in the denominator. If 4 Upgraded TikTok Shipping orders dispatch late, the math works in your favor.
LDR with FBT dilution — 4 late out of 1,000 total orders. Well below the 4% threshold.
LDR without FBT dilution — same 4 late orders out of only 100 self-fulfilled. Right at the enforcement threshold.
FBT’s formula treatment makes your LDR look better. But those 4 late dispatches still happened. If your FBT volume drops (stock-outs, seasonal shifts), your denominator shrinks while your dispatch habits haven’t changed. Complacency is the risk, not the formula.
The carrier must physically scan the package. Printing a label at 11:58 PM and dropping the package tomorrow means tomorrow’s scan date counts. For the full breakdown of the dispatch SLA and deadline calculations, see our 48-hour deadline guide.
Upgraded TikTok Shipping and CBT: LDR fully applies. You pack and hand off the package within the dispatch window. If the carrier doesn’t scan in time, it counts against your LDR — regardless of whether TikTok selected the carrier.
OTDR: Exempt for FBT, Conditional for Upgraded/CBT
What OTDR measures: The percentage of orders delivered within the promised delivery window, calculated weekly. Threshold: ≥80%.
TikTok manages the entire delivery process — warehouse pick, pack, carrier selection, and last-mile delivery. Your OTDR calculation excludes FBT orders entirely.
TikTok selects the carrier and generates the label. If you dispatched within the 2-business-day SLA and the carrier caused the delivery delay, policy language indicates exemption from OTDR penalties. The key word is carrier-caused. If the delay traces back to a late seller handoff, it may still count.
TikTok arranges pickup and delivery. If the carrier delayed after timely pickup, enforcement relief applies. If you had the package ready late, no relief.
As FBT absorbs more of your volume, your OTDR denominator shrinks. If you had marginal OTDR under Seller Shipping (say, 82%), the remaining Upgraded/CBT orders carry disproportionate weight. Five late deliveries out of 50 remaining self-fulfilled orders is 10% late — your OTDR drops to 90%, which still passes. But the margin tightens.
VTR: Exempt Across All Three Methods
What VTR measures: The percentage of orders with valid, scannable tracking numbers that show delivery progress. Threshold: ≥95%.
All three methods have TikTok controlling the tracking number generation end-to-end. Under Seller Shipping, VTR was a common compliance failure — sellers used carriers not integrated with TikTok, manually entered tracking numbers with typos, or uploaded numbers that never showed scans. Under FBT, Upgraded TikTok Shipping, and CBT, VTR is exempt — that entire category of violations no longer applies.
No action required. If you were struggling with VTR under Seller Shipping, the transition solves it automatically.
What does partial formula exemption mean for TikTok Shop SFCR under FBT?
According to TikTok’s SFCR Guide (updated January 6, 2026), the Seller-Fault Cancellation Rate under Fulfilled by TikTok follows a partial formula exemption similar to LDR but with a critical edge case. The denominator includes FBT orders in the total confirmed orders count. The numerator excludes FBT orders from the seller-fault cancellation count. This means FBT volume in the denominator can dilute the SFCR percentage, as more total orders with the same number of cancellations produces a lower rate. However, cancellations that happen before an order enters the FBT workflow still count. If a seller accepts an order and then cancels it because FBT inventory is out of stock before TikTok begins fulfillment, that cancellation hits the SFCR numerator. As of February 2026, this creates a specific risk when transitioning to FBT (TikTok’s previously announced Feb 25 mandate has been postponed indefinitely): inventory sync gaps between a seller’s catalog and FBT warehouse stock can trigger cancellations that count against SFCR even though the seller has moved to FBT. The SFCR threshold is 2.5% or below. Each pre-FBT-workflow cancellation contributes to AHR point deductions if the rate is breached.
SFCR: Partial Formula Treatment Under FBT
What SFCR measures: The percentage of orders canceled due to seller fault (out of stock, unable to fulfill, pricing errors) divided by total orders in the “Awaiting Shipment” stage. Threshold: ≤2.5%.
SFCR = (Non-FBT seller-fault cancellations) ÷ (Total confirmed orders, including FBT)
Same partial formula structure as LDR. FBT orders are excluded from the cancellation numerator (TikTok manages fulfillment at the warehouse level, so seller-fault cancellations are rare for FBT orders). But FBT orders are included in the denominator.
If you cancel an FBT-eligible order before it enters the warehouse workflow — for example, you realize a listing has the wrong price and cancel the order before TikTok’s system processes it — that cancellation can still count toward SFCR. The exemption applies to fulfillment-stage cancellations, not pre-fulfillment cancellations.
Sellers moving inventory to FBT warehouses sometimes forget to deactivate listings for SKUs that are in transit to the warehouse but not yet received. An order comes in, the seller can’t fulfill it (inventory is on a truck to FBT), and they cancel. That’s a seller-fault cancellation hitting your SFCR.
Before sending inventory to FBT, temporarily reduce stock counts for those SKUs in Seller Center. Only restore full availability once TikTok confirms receipt at the warehouse. This prevents cancellation-triggered SFCR hits during the transition window.
Upgraded TikTok Shipping and CBT: SFCR fully applies. If you cancel an order because you can’t fulfill it, it counts exactly as it did under Seller Shipping.
Does the TikTok Shop Account Health Rating change when sellers switch to FBT?
According to TikTok’s AHR documentation (updated February 2026), the Account Health Rating applies identically across all four fulfillment methods: Fulfilled by TikTok, Upgraded TikTok Shipping, Collections by TikTok, and Seller Shipping. FBT does not shield sellers from any AHR-related enforcement. The AHR operates on a 0-1000 point scale starting at 200 points for new accounts. Enforcement thresholds trigger restrictions at 150 points, escalate at 100 and 50 points, and result in account deactivation at 0 points. Product compliance violations (prohibited items, safety recalls), intellectual property violations (counterfeit claims, unauthorized branding), listing quality violations (miscategorization, incomplete information), and customer service metric failures (response rate, satisfaction rate) all deduct AHR points regardless of how orders are fulfilled. Repeat violations of the same type double the deduction. As of February 2026, AHR is cumulative across fulfillment methods, meaning a listing violation on an FBT product and a late dispatch on an Upgraded order both deduct from the same single score. Switching to FBT removes fulfillment responsibility but does not remove compliance responsibility.
AHR and Listing Violations: No Exemptions
Your AHR is a 0-1000 scale where higher is healthier. You start at 200 points. Enforcement milestones trigger at 150, 100, 50, and 0 points.
AHR is affected by metric violations (LDR, OTDR, SFCR thresholds), listing policy violations, and customer service violations. The fulfillment method doesn’t change how AHR calculates. It changes which inputs feed into AHR.
For the full breakdown of AHR scoring, recovery strategies, and enforcement actions, see our Account Health Rating guide.
Prohibited products, misleading descriptions, IP infringement, price gouging, and restricted category violations all apply regardless of fulfillment method. Moving to FBT doesn’t protect you from listing compliance. These violations deduct AHR points the same way under every method.
Hybrid Seller Edge Cases
Most sellers won’t use a single fulfillment method exclusively. Here’s what happens when you split orders across methods:
Scenario: 70% FBT, 30% Upgraded TikTok Shipping
LDR: Your 700 FBT orders inflate the denominator. Only the 300 Upgraded orders can generate late dispatches. Even 10 late dispatches:
LDR — 10 late out of 1,000 total orders. The formula math is generous.
OTDR: Only the 300 Upgraded orders count. Five late deliveries = 1.7% late, giving you 98.3% OTDR. Comfortable.
VTR: Exempt across both methods. Non-issue.
SFCR: Same partial formula as LDR. Your 700 FBT orders inflate the denominator, reducing SFCR.
AHR: All 1,000 orders contribute. No exemptions.
When 70% of your orders run on FBT’s automated workflow, the remaining 30% get less attention. You skip the afternoon dispatch check. You miss a carrier pickup window. Those lapses turn into late dispatches that still hit your LDR numerator. The formula helps you mathematically. Complacency hurts you operationally.
For a deeper analysis of hybrid fulfillment risks, see our complete post-FBT transition guide.
The “Exempt” vs “Partial” Distinction
This is the most misunderstood concept in the post-FBT landscape. Here’s the precise difference:
Exempt
The metric calculation ignores your orders entirely under that method. FBT orders are not in the VTR numerator or denominator. They don’t exist for VTR purposes. Same for FBT and OTDR.
Partial formula treatment
Your orders are removed from the “bad” side (numerator) but kept on the “total” side (denominator). This is strictly better than “fully applies” — it can only help your rate, never hurt it. But it’s not “exempt.” The metric still exists. The threshold still applies. And your non-FBT orders still generate the numerator events that can push you over.
Sellers who think “partial” means “I don’t need to worry” end up at 4.1% LDR because they stopped monitoring their Upgraded TikTok Shipping dispatches. The formula diluted their rate for months, masking sloppy dispatch habits. Then a slow sales week reduced FBT volume, the denominator shrank, and one bad day pushed them over the threshold.
Is CBT the same as cross-border trade on TikTok Shop?
No. According to TikTok’s Fulfillment Policy (updated February 2026), CBT in the context of TikTok Shop fulfillment stands for Collections by TikTok, a TikTok-managed pickup service, not cross-border trade. Collections by TikTok is a fulfillment method where TikTok arranges carrier pickup directly from the seller’s warehouse. As of February 2026, CBT eligibility requires two conditions: the seller must average 50 or more daily orders and must have a warehouse in an eligible geographic zone, currently limited to Greater Los Angeles, East Coast, and Texas regions in the United States. CBT requires a review period of 5 to 7 business days according to official documentation. In terms of metric applicability, CBT orders follow the same rules as Upgraded TikTok Shipping: LDR fully applies, OTDR receives conditional relief for carrier-caused delays, VTR is exempt because TikTok generates tracking, SFCR fully applies, and AHR applies with no exceptions. Sellers should check Seller Center for current CBT coverage areas and eligibility requirements, as geographic availability may expand over time.
FAQ
Does FBT make me exempt from all TikTok Shop compliance metrics?
No. FBT provides full exemptions for VTR and OTDR, and partial formula treatment for LDR and SFCR. Your Account Health Rating (AHR) and listing violations still apply in full. As of February 2026, no fulfillment method eliminates all metrics.
What’s the difference between “exempt” and “partial formula treatment”?
Exempt means the metric ignores your orders completely — they’re not in the numerator or denominator. Partial formula treatment removes your orders from the numerator (bad events) but keeps them in the denominator (total orders), which mathematically lowers your rate but doesn’t eliminate the metric.
Do Upgraded TikTok Shipping and CBT have the same metric exemptions as FBT?
Not entirely. VTR is exempt across all three methods. But Upgraded and CBT have no exemption for LDR or SFCR — those fully apply. OTDR offers conditional relief for Upgraded/CBT if delivery delays were carrier-caused, not seller-caused.
I’m running hybrid (FBT + Upgraded). How does LDR work?
Your FBT orders stay in the LDR denominator but are excluded from the numerator. Only your Upgraded orders can generate late dispatches. The formula math benefits you — but your Upgraded orders still need timely dispatch. Don’t let FBT’s automated workflow create operational complacency on your self-fulfilled orders.
Does moving to FBT reset my existing metrics?
No. Your historical LDR, SFCR, VTR, OTDR, and AHR scores from the Seller Shipping era carry forward into the transition. AHR uses a rolling assessment window for point recovery — transitioning to a new fulfillment method does not reset your accumulated AHR points or violation history. Your pre-transition metrics still count until they naturally roll off.
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