What is TikTok Shop?
TikTok Shop allows creators to sell products directly through TikTok videos. It was first launched in the UK in 2021 and later expanded to some Southeast Asian countries like Indonesia, Malaysia, Thailand, and Vietnam. TikTok Shop just recently launched in the US in late 2022.
With TikTok Shop, sellers can add shopping tabs to their TikTok profiles and sync their product catalogs. Viewers can then easily browse and purchase featured products without leaving the TikTok app. According to TikTok, this seamless shopping experience helps sellers convert views into sales. It also provides an engaging new way for brands to market themselves and reach TikTok’s massive user base.
Essentially, TikTok Shop aims to blend social media entertainment with ecommerce. It leverages the popularity of short-form videos to drive product discovery and shopping. TikTok is betting that social commerce will continue to gain momentum, especially among younger demographics.
Benefits of opening a TikTok Shop
Opening a TikTok Shop offers several key benefits for businesses looking to reach new audiences and drive sales:
With over 1 billion monthly active users, TikTok provides access to a massive global user base, especially Gen Z consumers. Having a TikTok Shop makes it easy for brands to get their products in front of this highly engaged audience.
TikTok’s emphasis on influencer marketing also allows brands to leverage the reach of popular creators. Collaborating with influencers to promote products in TikTok Shops can significantly boost brand awareness.
The in-app shopping experience is designed to be incredibly smooth and seamless. Users can easily browse products, complete purchases, and track orders without ever having to leave the TikTok app. This convenience helps brands convert viewers into customers.
Requirements for TikTok Shop Sellers
To open a TikTok Shop in the U.S., sellers must meet certain requirements around business verification, product catalog, and shipping capabilities. According to TikTok Shop’s seller sign up page, sellers need to have:
- A verified business account with at least 1,000 followers
- A product catalog feed with at least 30 products
- The ability to ship to customers in the U.S. within 3-7 business days after the order is placed
TikTok requires sellers to submit business verification documents like a business license, tax ID, and brand authorization. This ensures legitimacy and brand authority. Sellers also need to integrate their product catalog feed so their inventory is uploaded and synced with TikTok Shop.
Finally, having fast and reliable shipping capabilities allows TikTok Shop sellers to meet customer expectations. TikTok recommends using a third-party logistics provider or shipping carrier that can deliver orders within their delivery timeframe. Meeting these requirements shows sellers are equipped to handle TikTok Shop orders.
How to Set Up a TikTok Shop
Setting up a TikTok Shop involves a few key steps:
First, you’ll need to download the TikTok For Business app and create a TikTok for Business account. This allows you to access TikTok’s tools for sellers.
Next, you’ll connect your ecommerce platform to TikTok. You can link Shopify, Ecwid, or WooCommerce stores. This syncs your product catalog so you can add items to your TikTok Shop.
Then it’s time to create your TikTok Shop profile. This is a separate profile from your personal TikTok account. The shop profile is where you will showcase your products.
Finally, you can start adding products from your connected ecommerce store to your TikTok Shop. You pick which items you want to showcase. You can add product photos, descriptions, pricing, and more.
Once your shop is set up, you can start promoting your products through short videos and livestreams. TikTok makes it easy for viewers to tap and shop featured products right within the app.
Tips for selling on TikTok
TikTok’s fun and entertaining video format provides a great opportunity to showcase and sell products in creative new ways. Here are some tips for maximizing sales and engagement on TikTok Shop:
Create short, fun videos that highlight your products’ features and benefits. Show people how they can use the products in real life in an entertaining way. Videos under 60 seconds tend to perform best on TikTok. Use captions, on-screen text and effects to highlight key selling points.
Collaborate with popular TikTok influencers who align with your brand. Pay them or send them free products to feature in organic TikTok videos. This gives great exposure to their engaged follower base. Make sure to build relationships with influencers who genuinely like your products.[1]
Offer limited-time sales and deals to create a sense of urgency. Promote flash sales in your TikTok videos and store announcements. Consider offering special discounts to the first X number of customers for extra motivation.
Advertising your TikTok Shop
Once your TikTok Shop is set up, you’ll want to get the word out to potential customers. TikTok offers several compelling advertising options to promote your products including in-feed video ads, hashtag challenges, and LIVE videos.
In-feed video ads allow you to showcase your products directly in the main TikTok feed. These ads play automatically as users scroll, capturing attention with eye-catching visuals and minimal text overlays. According to TikTok, in-feed video ads drive higher conversion rates than generic images or carousels.
You can also rally TikTok users to engage with branded hashtag challenges centered around your products. The #eyeslipsface challenge by e.l.f. cosmetics generated over 4 billion views. Challenges like these position your brand as an integral part of the TikTok community.
LIVE shopping on TikTok enables real-time video demonstrations and promotions. The interactive nature of LIVE videos brings products to life and provides a personalized experience. Consider going LIVE to announce sales, introduce new arrivals, or offer exclusives like limited-edition bundles. Savvy sellers use LIVE content to drive sales directly within the app.
With the right advertising strategies, TikTok can become a powerful customer acquisition and revenue channel for ecommerce brands.
Managing orders and fulfillment
When you get an order through your TikTok Shop, the order is automatically sent to your connected ecommerce platform to be managed. This allows you to leverage your existing ecommerce platform’s order management and fulfillment capabilities.
After an order is placed, you’ll need to communicate order status to the customer. Best practices are to send a confirmation email when the order is received and shipping notifications when it ships and is delivered. Most ecommerce platforms like Shopify and WooCommerce have built-in functionality to handle these customer notifications automatically.
TikTok recommends shipping orders within 2 working days. According to their seller guidelines, a “Shipped” status means the package has been handed over to the shipping provider and tracking information is available. Communicating shipment status keeps customers informed and prevents inquiries about delayed orders.
TikTok is also beta testing a new fulfillment program called Fulfilled by TikTok that handles warehousing, picking, packing and shipping on behalf of sellers. This program aims to simplify logistics and ensure quick delivery for TikTok Shop orders in the US. https://www.shipbob.com/blog/tiktok-fulfillment/
TikTok Shop Policies
TikTok has strict policies in place for TikTok Shop sellers to ensure a quality experience for shoppers. Some key policies to be aware of include:
Prohibited and restricted product policies – TikTok prohibits the sale of certain products like firearms, drugs, and tobacco. There are also restrictions around products like alcohol, dietary supplements, and cosmetics that require additional approval or permits (source).
Authenticity policies – All products sold must be authentic and legitimate brands. Counterfeit or fake brand name products are strictly prohibited (source).
Violation consequences – Sellers found violating policies may have listings removed or shops shut down. Repeat or serious offenses can lead to permanent suspension from selling on TikTok (source).
It’s crucial for TikTok Shop sellers to thoroughly review all policies to avoid issues. Violating the rules can jeopardize your shop and selling privileges.
Success stories
Many top brands have found great success using TikTok Shop. According to TikTok’s own case studies, brands like NHL, SiriusXM, Pond’s, and Pepsi have driven strong results through creative TikTok Shop campaigns.
For example, during the 2021 NHL playoffs, the NHL launched a TikTok Shop tab that featured officially licensed playoff caps and merchandise. This campaign generated 2.1 million engagements and over $1 million in sales revenue.1
Skin care brand Pond’s also found success, driving a 6X return on ad spend with their #PondsMiracleJelly TikTok Shop campaign. Their videos showcasing the product garnered 4.2 million views and 340,000 engagements over 2 weeks.2
Overall, metrics show strong results for brands using TikTok Shop creatively. Conversions are high, with click-through rates over 10% on Shop tabs. Engagement has also been strong, with brands seeing comments and shares well above their baselines. As more brands test TikTok Shop, expect more success stories highlighting performance.
The future of social commerce
Social commerce is expected to continue its rapid growth in the coming years as more consumers shift their shopping online and to social platforms. According to Insider Intelligence, social commerce sales in the US are projected to reach $60 billion in 2024, up from $36 billion in 2021. Emerging trends helping drive this growth include livestream shopping, shoppable video, and integrated checkout.
TikTok Shop in particular is poised for massive expansion. After launching TikTok Shop in 2021, parent company ByteDance predicts the platform will hit $185 billion in sales globally by 2026. TikTok plans to continue enhancing its shopping features while expanding into new markets like the US. Key competitors in social commerce include Facebook and Instagram Shops, YouTube Shopping, Pinterest Shop, and Snapchat’s partnership with Shopify. However, TikTok’s booming popularity among young consumers gives it an edge in leveraging short-form viral videos for social shopping.
As more brands and retailers join these platforms, social commerce will become increasingly mainstream. The most successful businesses will craft shopping experiences tailored to their target audience and leverage emerging trends like livestreaming and social content. The convenience of buying directly within social apps provides a frictionless path from discovery and inspiration to purchase.
