Guide on How to Sell on TikTok Shop

In a bold move towards the e-commerce realm, TikTok has unveiled its TikTok Shop program, offering a plethora of incentives to brands and creators ready to dive into this innovative retail space.

Getting Started: The Seller’s Journey

Embarking on the TikTok Shop journey as a seller is a straightforward process. Brands and small businesses merely need to apply on the TikTok Seller Center portal, where document verification is a crucial step. This exciting feature is accessible in various countries, including the US, Vietnam, Singapore, the UK, and Thailand.

For an in-depth initiation into the TikTok Shop realm, sellers can refer to a comprehensive 9-page document provided by TikTok, outlining the nuances of getting started and best practices.

Affiliate Marketing: A Sales Booster

The linchpin for creators and brands to elevate their sales lies in affiliate marketing. By offering a percentage of each sale to creators promoting their products, brands can significantly amplify their reach. Sellers have the flexibility to set commission rates, typically ranging from 5% to 20%, as confirmed by both creators and a TikTok executive.

Discover more about the offerings TikTok Shop extends to brands through insights provided by an executive steering the program.

Initiating Your TikTok Shop as a Seller

Joining TikTok Shop is a breeze for brands. Upon acceptance into the program, sellers can set up their product showcase on their TikTok profile and incentivize creators through affiliate marketing. Sellers can choose between “Open” collaboration, encompassing all or selected products with varying commission rates, or “Targeted” collaboration, enabling merchants to pick preferred creators.

Accessing the Seller Center App equips merchants with tools to manage their shop comprehensively, from inventory and orders to promotions, creator collaborations, and customer service. Seamless integration with third-party e-commerce platforms like Shopify, Square, Ecwid, and BigCommerce is also possible.

But is TikTok Shop free for sellers? While registration is free, TikTok currently imposes a 2% commission combined with a 30 cents per transaction fee, slated to increase to 8% in July.

Sellers must peruse TikTok’s list of prohibited items when setting up a shop. TikTok employs a combination of AI and manual reviews for product listings, necessitating caution to adhere to the platform’s terms. Additionally, TikTok’s shipping and order fulfillment rules are critical, as violations can occur if merchants fail to ship within the stipulated three-day window for US sales.

Perks for TikTok Shop Sellers

TikTok entices merchants by offering perks such as free shipping and discounts for new sellers. Special promotions are periodically rolled out, encouraging sellers to post videos, go live, and spur sales. Noteworthy instances include seller competitions and offers during key shopping events like Black Friday and Cyber Monday.

Explore the strategic moves TikTok made during Black Friday and Cyber Monday in 2023.

For independent sellers, TikTok Shop has proven lucrative. A creator selling independently published books on TikTok managed to transition to a full-time author, quitting their job as a nurse.

However, convincing blue-chip corporations to embrace TikTok Shop has posed challenges, with not all brands hopping on the bandwagon.

TikTok’s Dual Role: A Seller and a Merchant

Beyond onboarding third-party merchants, TikTok envisions directly selling items. Initiatives like the UK’s “Trendy Beat” product page mark a step towards this dual role, and the company plans to replicate this strategy in the US.

Monetizing Creativity: A Creator’s Path

Creators can enter the TikTok Shop arena when they meet community guidelines, are at least 18 years old, and boast a minimum of 5,000 followers. Creators have three pathways to sell on TikTok Shop: livestreaming, shoppable videos, and product showcases. Through these mediums, creators earn money via affiliate commissions, receiving a cut of the sales generated through their content.

Learn about the perks extended to creators to encourage them to use TikTok Shop.

Live Selling Tips for Merchants

TikTok Shop actively encourages live selling, recommending merchants to go live for at least two hours. The platform suggests that longer live sessions attract more engagement, with some merchants opting for extended durations, including eight or 24-hour streams. The continuous presence enables a broader audience reach and heightened interaction.

Dive deeper into the strategies employed by merchants like Newegg and What Goes Around Comes Around for extended live selling sessions.

In conclusion, TikTok Shop emerges as a dynamic platform where sellers and creators can synergize to unlock unprecedented opportunities. Whether you’re a brand venturing into the e-commerce landscape or a creator exploring new revenue streams, TikTok Shop offers a vibrant marketplace. By adhering to best practices, understanding the platform’s guidelines, and leveraging the diverse selling avenues, TikTok Shop becomes a canvas for businesses and creators to paint their success stories. Happy selling on TikTok Shop!