What is TikTok Shop?
TikTok Shop is a new integrated shopping feature within the TikTok app that allows creators and brands to showcase and sell products directly to consumers (Source). It combines TikTok’s highly-engaged user base and discovery algorithm with an end-to-end shopping experience, from product discovery to checkout, without leaving the app.
With TikTok Shop, brands and sellers can easily set up in-app storefronts and curate collections of shoppable products. Using the hashtag #TikTokShop, they can create TikTok videos to organically promote and sell items to viewers. Shoppable product links can be added to profiles, videos, or livestreams. When viewers express interest in a product, they can checkout seamlessly within TikTok using integrated payment platforms.
The feature provides tools for sellers to drive traffic to products and analyze performance. It also gives buyers a more immersive shopping experience where they can discover and purchase products that align with their interests, all within an app they already engage with daily (Source). TikTok Shop aims to turn the platform’s creative and entertainment focus into a vibrant social commerce environment.
Availability of TikTok Shop
TikTok Shop is currently only available in certain Asian markets, primarily Southeast Asia. As of now, TikTok Shop has launched in the following countries:
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
TikTok Shop has not yet launched globally or expanded to Western markets like the United States. According to TikTok’s press release, the company has plans to bring TikTok Shop to more regions in 2022, but specific expansion plans have not been publicly announced yet (Introducing TikTok Shop).
For now, TikTok Shop remains constrained to certain Asian countries where TikTok has tested the ecommerce features. Sellers and buyers interested in TikTok Shop will need to be located in one of the markets where it has officially launched.
Finding the TikTok Shop Code
The TikTok Shop Code is required to set up a TikTok Shop account. This unique code can be located in the TikTok Shop merchant settings once registered as a seller. According to the TikTok Business Center, the Shop Code is found on the TikTok Seller Center under the seller profile information.
Specifically, sellers need to go to My Account, select Seller profile, and click Seller information to find their TikTok Shop Code. This code allows sellers to connect their TikTok Shop account to their retail operations and begin setting up their online storefront.
The Shop Code is an important part of establishing a presence on TikTok Shop as a seller. With this unique identifier, merchants can start populating their store, adding products, setting up payment processes, and promoting their business to TikTok users.
Registering for a TikTok Shop Account
Registering for a TikTok Shop seller account can be done through the TikTok Shop Seller Sign Up page (https://seller-us-accounts.tiktok.com/). The sign up process takes just a couple minutes and requires a US phone number and email address. To complete the application, sellers need to provide their business information including name, address, tax info, and bank account.
Registration for TikTok Shop is currently limited to certain countries and regions. As of 2022, TikTok Shop is available in the UK, US, Canada, Australia, New Zealand, France, Germany, Italy, Spain, Belgium, and Netherlands. Expansion plans for other markets are expected in the future. Sellers must have a business registered in one of the supported countries in order to sign up for a TikTok Shop account.
Setting up Your TikTok Shop
Once your TikTok Shop seller account is approved, you can start setting up your TikTok Shop profile and catalog. Here are some tips for getting your TikTok Shop ready:
Set up your Shop Profile – Your TikTok Shop profile is like your storefront. Add an eye-catching cover image, profile photo, and bio to showcase your brand. Make sure to include keywords that potential customers may search for.
Build Your Product Catalog – Upload and organize all of your products into collections. Provide detailed titles, descriptions, images and videos. Make it easy for shoppers to browse and find what they want.
Schedule Livestreams – Livestreams let you showcase products and interact with customers in real time. Set up a schedule for livestreams to promote new arrivals and bestsellers. Offer limited deals to incentivize purchases.
Promote Your Shop – Utilize TikTok advertising and creator marketing tools to promote your shop profile and products. Collaborate with influencers to reach wider audiences.
Analyze Performance – Use TikTok Shop analytics to see which products are performing best. Adjust your catalog and marketing accordingly. Offer discounts on slow-moving items.
Provide Great Customer Service – Respond promptly to questions and feedback from shoppers. Offer easy returns and exchanges. This helps build loyalty and repeat business.
To have the best chance of TikTok Shop success, put effort into setting up an engaging profile, diverse catalog, and ongoing promotions. Refer to TikTok’s Seller Center resources for more detailed guidance on optimizing your TikTok Shop.
Promoting Your TikTok Shop
There are several effective strategies for promoting your TikTok Shop to gain more followers and increase sales. Some key best practices include:
- Leveraging influencer marketing by partnering with relevant creators to promote your products in their content. Offer affiliate commissions or free products in exchange for sponsored posts. You can find influencers to work with by searching related hashtags (source: https://www.bigcommerce.com/articles/omnichannel-retail/selling-on-tiktok/)
- Running paid TikTok ads to reach new audiences and drive traffic to your shop. Use compelling visuals and captions in your ads.
- Using relevant hashtags in your TikTok posts and asking followers to use your branded hashtag. This helps more users discover your content and shop.
- Offering limited time promotions, sales, or coupon codes to incentivize purchases.
- Posting shoppable video content highlighting your products and encouraging viewers to shop the looks.
Gaining more followers and engagement on your TikTok profile is key, as the algorithm will show your content to more potential customers. Post consistently, engage with your audience in the comments, and utilize all the built-in TikTok tools for sellers. With the right promotional strategy, you can successfully grow your TikTok Shop presence and sales.
Managing Your TikTok Shop
Once your TikTok Shop is set up, there are ongoing responsibilities around managing inventory, orders, and customer service. According to the TikTok Business Center, sellers can use TikTok Store Manager to manage their TikTok Shop if they are using Shopify. This allows you to manage your store directly from your TikTok for Business account.
Key aspects of managing a TikTok Shop include:
- Keeping your product catalog up-to-date with current inventory levels
- Processing and fulfilling orders in a timely manner
- Providing excellent customer service and responses to buyer inquiries
- Analyzing sales data and optimizing your product offerings
- Running promotions and sales to engage your TikTok audience
Proper ongoing management helps ensure a seamless experience for your customers while also growing your TikTok Shop. Dedicate sufficient time and resources to inventory, order, and customer service management for success.
TikTok Shop Seller Requirements
To become an authorized seller on TikTok Shop, there are certain requirements that need to be met. According to TikTok’s seller sign up page (https://seller-us-accounts.tiktok.com/), sellers need to meet the following criteria:
You must have a TikTok For Business account with at least 1,000 followers. This ensures you have an established audience base to market products to. Your account must also have no violations in the past 60 days.
TikTok states sellers should have a store on Shopify, WooCommerce, Square, or another ecommerce platform (https://statusbrew.com/insights/how-to-sell-on-tiktok/). You will connect your TikTok Shop to your existing online store.
Sellers need to provide identity verification by submitting business incorporation documents or a government-issued ID. You must have a registered business name and address.
TikTok charges sellers a 5% transaction fee for purchases made through TikTok Shop. There are no monthly fees or upfront costs to join the platform.
Your content must comply with TikTok’s commerce policies. Listings should showcase authentic products with accurate images, titles, descriptions and pricing.
Future Expansion Plans
TikTok Shop currently operates primarily in Southeast Asia, but there are signs it may expand more globally in the future. According to this article, TikTok is planning a major U.S. expansion of TikTok Shop in 2024, with plans to grow its ecommerce business in the region tenfold to $17.5 billion. This indicates TikTok sees potential in bringing TikTok Shop to Western markets like the U.S. and Europe, where it could compete with ecommerce giants like Amazon.
TikTok is reportedly looking to partner with U.S. brands and merchants to drive this expansion. If it succeeds, users in the U.S. and other Western countries may soon be able to easily shop via TikTok in a similar way as current users in Asia. This global growth could position TikTok Shop as a major new player in ecommerce and social commerce.
Alternatives to TikTok Shop
If TikTok Shop is unavailable in your region or you want to expand your social commerce presence, there are several alternative platforms brands can leverage for live streaming shopping and selling products directly to consumers.
Other popular social media platforms like Instagram, YouTube, and Facebook offer built-in live streaming functionality that can be used for real-time product showcases and sales. Instagram Live and Facebook Live even support in-stream shopping allowing viewers to tap and purchase featured products directly within the live video.
There are also dedicated live commerce platforms like Snack Video, Livescale, and Be.Live that provide the tools and monetization options for brands to set up shopping streams and drive sales. These can work as standalone ecommerce channels or be connected to existing online stores.
With multiple alternatives available, brands should research which platforms best align with their target audience, product offerings, and business goals if they want to replicate the social shopping experience of TikTok Shop.
