It’s no secret that TikTok is big on social commerce. The platform introduced features like in-app shopping to tap into the growing trend. But perhaps no feature has excited merchants more than TikTok Shop.
Launched in late 2022, TikTok Shop has made waves among users and merchants worldwide. According to reports, Shops on TikTok generated $11.09 billion in gross merchandise volume last year, with beauty and personal care leading at $2.49 billion.
Want a slice of the pie? Read on to learn how to sell on TikTok Shop and tap into the booming social commerce trend.
What is TikTok Shop?
TikTok Shop is a built-in shopping feature that allows users to buy products directly via the TikTok app.
Let me explain: imagine you're scrolling through TikTok and come across a cool gadget. With TikTok Shop, you can purchase it directly without leaving the app.
How does it cater to merchants? TikTok Shop lets sellers:
- Showcase products in videos
- Go live to promote items
- Have a dedicated Shop tab
- Run ads to reach users
- Get orders fulfilled by TikTok
It provides an easy-to-use platform for managing inventory, engaging with customers, and analyzing performance. This makes TikTok Shop a powerful tool for boosting sales and reaching a wider audience.
Who Can Sell on TikTok Shop?
Merchants located in Indonesia, Malaysia, the Philippines, Singapore, Thailand, the United Kingdom, the United States, and Vietnam can sell on TikTok Shop. TikTok provides unrestricted access to the Shop feature for users in these countries.
What are the different categories of TikTok Shop?
TikTok Shop has four main categories, each with its own requirements: Sellers, Creators, Partners, and Affiliates.
Sellers
To become a TikTok Shop Seller, you need to verify your identity. Provide your incorporation certificate, a driver's license or passport, and the last four digits of your tax ID. Also, you'll need your TikTok account details, phone number, and email. If you have these, you can apply to be a Seller.
Creators
Creators can earn through TikTok Shop Affiliate by linking products in their videos and Lives. You need a good-standing account, over 5,000 followers, and be at least 18 years old. If you meet these, you can apply to be a Creator and start earning commissions.
Partners
Partners are businesses offering professional e-commerce services or apps to Sellers and Creators. If you're a business providing these services, you can join the TikTok Shop Partner program.
Affiliates
Affiliates can promote and sell products from different TikTok Shops to earn commissions. By featuring products in your videos and Lives, you help drive sales and earn a percentage of each sale made through your links.
How to Start Selling on TikTok Shop
If you're ready to start selling on TikTok Shop, here’s how to do it.
1. Sign Up
Go to the TikTok Shop Seller Center. Register with your phone number or email. If you have a TikTok account, you can use that to sign in.
2. Verify Your Documents
From the Seller Center home page, click on Verify Documents and then Upload Documents. Select your business type: Corporation or Individually-owned Business. Enter your shop name.
- Individually-owned business: Upload the front and back of your passport, national ID, or driver’s license.
- Corporation: Upload an image of a government-issued ID of the legal representative or company director. Also, provide a business license or registration document.
After uploading, click Submit. Your account application will be reviewed. If not approved, you’ll get an email with resubmission instructions.
3. Link a Bank Account
Once your documents are verified, link a bank account to handle purchases and returns. Click Link Bank Account and enter the required details like account name, bank name, account number, email, and address.
- Individually-owned businesses: The account name should match the registered name.
- Corporations: The account name should match the company name.
Fill in all required fields and click Submit. Now you're ready to add products to your TikTok Shop.
4. Add Products
After linking your bank account, it's time to add products to your shop. Here are the steps you'll need to take:
- Go to the TikTok Shop Seller Center.
- Make sure your product isn’t on the Prohibited Products list.
- Scroll down to ‘Upload 1 product’ and click ‘Upload now.’
- Enter the product name. TikTok recommends including the brand, product name, benefits, and net weight.
- Select a category from the dropdown or find a relevant one.
- Add the product brand and other optional attributes.
- Upload at least three images. This helps buyers see what they're getting.
- Enter a product description. Talk about your product as much as possible—this sells it.
- Upload a video if you want. Tutorials or reviews work great.
- Add any variations like color or size.
- Fill in the shipping and warranty information.
TikTok Shop allows a wide range of items but has restrictions too. For instance, you can't sell alcohol, tobacco, or live animals. You can sell clothing, gadgets, and home decor. Some categories, like electronics and pet food, need special approval.
5. Promote Your Shop
Now that your shop is set up, it’s time to promote it. Start by adding links to your products in your videos and mentioning them naturally. Show your products in action rather than just talking about them.
Next, run ads to reach a wider audience. Use the TikTok Ads Manager to create engaging ads that highlight your products. Keep an eye on your ad performance to see what works best and adjust accordingly.
What Are TikTok Seller Fees?
TikTok Shop charges sellers fees through commissions on sales. The amount varies depending on product type and seller agreements.
In the US, sellers face a combined referral and transaction fee based on the product type. The processing fee is around 2.9% plus $0.30 per transaction, similar to other eCommerce platforms. However, TikTok recently increased its seller fees from 2% to 6%, with plans to reach 8% by July.
But even with these changes, TikTok's fees are still lower than Amazon’s, though this can vary by category. TikTok is also cutting back on subsidies for sellers, only keeping them for the top-selling products. So, if you're planning to sell on TikTok Shop, be ready for these new fees and strategize accordingly.
Tips for Increasing Sales With TikTok Shop
Sell Trending and Problem-Solving Products
Find products that are trending or solve a problem within your chosen niche. Amazon is a great place to start due to its wide selection and reliable shipping.
Look for trending items on Amazon's bestseller lists. These lists show what people are buying right now. For example, phone accessories or kitchen gadgets that make life easier.
Explore products that solve everyday problems. Think about items like a portable blender for smoothies on the go or a gadget that keeps your cables organized. People love practical solutions.
Once you have a few products in mind, test them out. Order samples to check the quality. See how they fit within your niche. Taking these steps will ensure you’re offering the best to your audience.
Host TikTok Shop Live
Go live on TikTok to connect with your audience in real-time. Live shopping offers a chance to showcase products and answer questions on the spot. Engage with viewers by demonstrating how to use your products.
For example, a shoe brand could show the different designs available in its lineup. Highlight features and benefits while interacting with viewers. Mention exclusive deals available only during the live session.
It's also a good idea to make your live events fun and informative. Share behind-the-scenes looks at your business or host Q&A sessions. This approach keeps viewers entertained and more likely to make a purchase.
Optimize Your Shop Catalog
The shop tab in your account is where TikTok showcases your products. To ensure it attracts customers, you need to optimize it for easy browsing and a pleasant shopping experience.
Start by adding high-quality product images. Make sure they look appealing and consistent with your brand's style.
Next, make sure your product titles are under 34 characters so they don’t get cut off. Include basic information about each product. Your descriptions can be longer, so use that space to provide all the details that wouldn’t fit in the title.
It's also important to refresh your catalog daily. Keeping your product info accurate and up-to-date ensures consistency and helps avoid disapprovals.
Work With Influencers
Another way to increase sales is to partner with influencers. These are TikTokers who have a tight-knit relationship with their followers. Using tools like Collabstr, you can find the ideal influencers for your brand.
Once you find a few influencers, think about how you want to collaborate. Some ideas include:
- Hosting a product giveaway
- Creating a co-branded video series
- Featuring your products in their daily routines
- Running exclusive discount codes for their followers
You can track the impact of your collaborations through promo codes or unique links. If the sales increase, it means the partnership is working and boosting your sales.
Present Your True Self
If you're a creator on TikTok Shop, being authentic is key. Only promote products you actually use and love. After all, people can tell when you're faking it, and trust is hard to earn back.
Be picky about what you add to your showcase page. For instance, creator Stay Golden HI shares jewelry tips and advice. Her TikTok Shop includes statement pieces she personally uses.
Also, make sure your content is reliable and true. Avoid spreading misinformation or using edited media that misleads people. TikTok values integrity and so should you.
Finally, interact genuinely with your audience. People are smart enough to differentiate between a genuine creator and a poser. Post your own original content, avoid copying others, and always be truthful in your promotions.
Reuse Existing Content
Got lots of great videos on Instagram or Facebook? Use them on TikTok too. Reposting successful content is an easy way to find a new audience.
If you have many videos, plan a posting schedule. Share at least three times a day. It’s a quick way to gain followers and get noticed by influencers in your niche.
No content to share yet? Start by making your own videos or hire micro-influencers. They create User-Generated Content (UGC) that gets your product out there. Just keep an eye on your budget.
Tag your products in your videos. TikTok's algorithm loves promoting TikTok Shop. More product tags mean more exposure, leading to more followers and sales.
Collaborate with Affiliates
One more way to promote your brand on TikTok Shop is through open collaboration. Log in to your TikTok Shop account, click on the Affiliate tab, and then hit "Get Started."
Once you’re in the affiliate section, you have many options. One of the best is “Open Collaboration.” Here, TikTok influencers can select your products and request samples. If they like them, they might promote them in a video.
In Open Collaboration, you can add product links, set commission rates, and list free samples. Influencers often pick products with the highest commissions, so offer a competitive rate. If an influencer requests a sample, you’ll see it in the “Sample Request” tab.
You can also try “Target Collaboration.” This lets you choose specific influencers to promote your product. Send them a request on TikTok, and they can accept or deny based on your offer.
Offer Discounts
Product discounts and flash deals are great ways to draw in buyers.
Set up product discounts by going to your TikTok Shop, clicking on "Campaigns" in the left menu, and selecting "Promotional Tools." Choose "Product Discount." Now set the promotion name, period, and discount type (percentage or fixed). Pick the products you want to discount, and save.
You can also run flash deals by following the same steps. Pick a short time frame like an hour or a day. Set the duration and discount, and select products to featue in the deal.
Bundles are another fun option. Combine products at a discounted price. Shoppers love a good deal. Plus, it helps increase the average order value.
Don't forget free shipping. It’s a huge selling point. Many shoppers abandon carts because of high shipping costs. Offer free shipping over a certain amount to boost TikTok Shop sales.
Try TikTok Ads
Perhaps the fastest way to increase sales on TikTok Shop is to run TikTok ads. Ads can get your products in front of a lot of people fast.
Use TikTok's ad tools to create targeted campaigns. Aim for users who interacted with your TikTok Shop before. These warm leads are more likely to buy.
Try remarketing to these users. Show them ads for products they viewed but didn’t buy. This little nudge can boost your sales.
You can also create lookalike audiences. These are new potential customers with similar profiles to your existing ones. It’s a great way to reach more people who might love your products.
Selling on TikTok Shop has its perks and downsides. Here’s a closer look at what you can expect.
Advantages of Selling on TikTok Shop
Simple Setup Process
Setting up a TikTok Shop is quick and easy. No coding skills needed. You can have your shop running in minutes.
Low Commission Fees
For the first 90 days, you pay just 1.8% commission. After that, it’s 5%, which is lower than many other platforms.
Huge Audience Reach
TikTok has over a billion users, mostly aged 18-24. This gives you a massive audience to showcase your products.
Increase in Sales
The platform is visual and engaging. Users can buy directly from videos without leaving the app, boosting sales.
Disadvantages of Selling on TikTok Shop
Limited Payment Methods
Currently, only debit/credit cards and Apple Pay are accepted. There’s no PayPal option for shoppers.
Geographical Restrictions
TikTok Shop isn’t available in all countries. This limits your potential customer base significantly.
Product Restrictions
Certain products like digital goods (eBooks, music, software) aren’t allowed. This limits what you can sell on the platform.
Final Verdict
Selling on TikTok Shop is a great way to reach a big audience. Using the tips above, you can boost sales, connect with customers, and have fun doing it.
Remember to keep your content engaging and your products appealing. Try different strategies to see what works best for you.
Ready to make your shop pop on TikTok? Get started now and watch your sales soar.
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