What is TikTok Shop?
TikTok Shop allows creators to sell products directly through TikTok videos (1). It was first launched in 2021 as a pilot program limited to certain regions and creators (2). TikTok Shop aims to bring “an engaging and entertaining shopping experience that makes it easy for people to discover and purchase products they love” (1).
The feature lets sellers showcase products in TikTok videos and live streams. Viewers can then easily purchase items without leaving the app. TikTok Shop has been slowly rolling out to more regions and giving access to more creators over time. It launched in Southeast Asia in 2021 before expanding to the UK in 2022 (2).
As of September 2022, TikTok officially launched TikTok Shop in the United States after months of testing. It’s now bringing shoppable videos and live streams directly into users’ For You feeds (1). The launch in the US marks a major expansion for TikTok Shop given the platform’s large user base there of over 150 million monthly active users (3).
Sources:
(1) https://newsroom.tiktok.com/en-us/introducing-tiktok-shop
(2) https://www.reuters.com/technology/tiktok-launches-online-shopping-us-2023-09-12/
(3) https://techcrunch.com/2023/09/12/tiktok-shop-officially-launches-in-the-u-s/
Availability of TikTok Shop
TikTok Shop is currently only available in certain regions of the world, primarily in Southeast Asia. As of 2022, TikTok Shop is available in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and the United Kingdom [1]. TikTok plans to expand TikTok Shop availability to more regions in the near future. One major planned expansion is to the United States, expected to launch in 2022 [2].
For now, TikTok Shop is limited to only select creators and brands. TikTok handpicks merchants and influencers to take part in the TikTok Shop program based on criteria like account engagement and content themes. The program is not yet open to all creators and businesses, but TikTok may expand access over time as the feature develops.
How Creators Can Enable TikTok Shop
In order to enable TikTok Shop, creators must first apply and be approved to use the platform (Creator | TikTok Shop). There are a few key requirements creators must meet in order to be eligible:
First, creators must have a minimum of 100,000 followers on TikTok. This ensures they have a large enough audience to drive significant traffic to their TikTok Shop store.
Second, creators must complete TikTok’s product merchandising training. This covers important details like how to properly showcase and describe products, shipping and fulfillment, and TikTok Shop policies (Creator | TikTok Shop). Completing the training demonstrates a creator is serious about running a professional store.
Once approved for TikTok Shop, creators gain access to features that make selling intuitive. This includes the ability to add “Shop Now” buttons to TikTok videos and highlights, create special TikTok LIVEs for promoting products, and analytics to track store performance.
How to Find TikTok Shop Listings
To find products available for purchase on TikTok Shop, start by looking for the shopping bag icon on videos from brands or creators. This icon indicates that the video has shoppable products associated with it. Simply click on the icon to view all the available products for sale.
You can also use the search bar to find videos and stores that are shoppable on TikTok. Try searching for product names, brands, creators, or categories to pull up results that have the shopping bag icon. Tap into the search results to land on videos showcasing the products.
The TikTok Shop homepage also features trending and recommended shoppable videos and stores to browse through. This can help you easily discover new products and brands to shop from.
Once you identify a shoppable video, you can scroll through the products featured and add items to your cart for a seamless shopping experience right within the TikTok app.
How to Purchase on TikTok Shop
Purchasing products on TikTok Shop is similar to other online shopping experiences. Here are the steps to checkout on TikTok Shop:
1. Tap a product listing to view details about the item such as photos, videos, description, sizing options, and reviews.
2. Select any variants such as size or color if applicable to the product.
3. Tap “Add to Cart” to add the item to your cart. You can add multiple items to your cart from different sellers.
4. When ready, tap the cart icon in the bottom navigation bar to begin checkout. You will be prompted to checkout as a guest or log in with your TikTok account.
5. Enter your shipping address and billing information. TikTok works with third party payment platforms like Stripe to process transactions securely.
6. Select shipping method and finalize payment. After submitting your order, you will receive a confirmation from TikTok.
The checkout process is designed to be quick and seamless for shoppers. Purchases are securely handled by TikTok without leaving the app.
Payment Methods
TikTok Shop allows buyers to pay using different payment methods depending on their region. The main payment methods accepted are:
Credit cards: Major credit cards like Visa, MasterCard, American Express, and Discover are accepted as payment methods on TikTok Shop in most regions. According to the TikTok Ads Manager, credit card is the default payment method for users in countries like the United States, Canada, United Kingdom, Australia etc. https://ads.tiktok.com/help/article/supported-payment-methods?lang=en
TikTok coins: In some Asian regions like Indonesia, TikTok allows users to pay with TikTok coins. TikTok coins can be purchased in the app and then used to pay for purchases in TikTok Shop. This provides an alternative payment option for users who don’t have credit cards in those regions.
Other localized payment methods like direct carrier billing may also be enabled in some regions. Users can check the payment methods available to them when making a purchase on TikTok Shop.
Order Fulfillment
When shoppers place an order through TikTok Shop, order fulfillment is handled directly by the creators or brands who list their products on the platform. TikTok itself does not hold any inventory or ship products.
After an order is placed, TikTok provides creators and merchants with a back-end order management system to view and process orders. However, fulfillment itself is done independently by the sellers.
For order fulfillment, sellers have a couple options:
- Direct shipping: Creators and brands can package and ship orders directly from their own warehouse or facility.
- Third-party logistics: Sellers can also enlist third party shipping and logistics partners to handle warehousing, packaging, and delivery on their behalf.
This decentralized model allows TikTok Shop sellers flexibility in how they fulfill orders, while leveraging TikTok’s platform and reach. However, it also means that product availability, shipping speeds, and logistics are determined individually by each seller.
TikTok Shop Policies
TikTok Shop has strict policies that sellers must follow to list products for sale. All products listed in TikTok Shop must comply with TikTok’s Prohibited Products Policy.
Prohibited products include counterfeit goods, dangerous or illegal products like weapons and drugs, sexually suggestive items, and products that violate intellectual property rights. TikTok also prohibits certain regulated goods like alcohol, tobacco, healthcare products, and financial or gambling-related services from being sold on TikTok Shop.
In addition, all sellers must abide by TikTok’s Seller Terms of Service which outlines other prohibited business practices. Violating any of TikTok’s policies can result in account suspension or termination.
Tips for Finding Best Deals
Here are some tips for finding the best deals on TikTok Shop:
Follow your favorite brands and creators – Get notifications when they launch new products or share discount codes. Staying up-to-date can help you find deals right when they become available.
Check frequently for new product launches – Brands will sometimes offer discounts or bundles when first launching a new product line on TikTok Shop. Checking the app routinely can help you catch these limited time deals.
Look for discount codes and sales – Keep an eye out for promo codes shared by brands or creators. TikTok Shop also runs site-wide sales for certain holidays and events. Using coupon codes and shopping sale events are great ways to maximize savings.
For more tips, check out this Reddit thread: https://www.reddit.com/r/PKMNTikTokDeals/comments/180t24v/hi_can_someone_explain_how_to_get_these_coupons/
Future Outlook for TikTok Shop
The future looks bright for TikTok Shop as it continues to expand globally. According to Insider Intelligence, TikTok is predicted to have 33.3 million social buyers in the US alone by the end of 2023, up from just 9.6% of users making purchases on the platform in 2022 [1]. Envision Horizons also forecasts significant growth, with the number of TikTok users making purchases expected to jump to 33.3% in 2023 [2].
As TikTok Shop grows its user base, it presents a major opportunity for brands and creators to leverage the platform for sales. According to one report, 68% of TikTok’s core Gen Z demographic are predicted to purchase directly on TikTok Shop [3]. With its immersive shopping experience and influence of creators, TikTok Shop has potential to dominate social commerce in the coming years.
