TikTok is renowned primarily for its viral content and 1 billion monthly active users. On September 12, 2023, the platform officially launched TikTok Shop in the United States, turning the concept of e-commerce marketplaces upside down. TikTok Shop provides e-commerce companies a unique opportunity to directly connect with their target audience, applying a creative sales approach.
In this guide, we’ll review what TikTok Shop is and its benefits for business, how to create a TikTok business account, and the step-by-step process of working with TikTok Shop.
What is TikTok Shop
TikTok Shop is a shopping feature on TikTok that enables companies, brands, and content creators to demonstrate and offer their products directly to users. E-commerce businesses can use this virtual storefront to promote and sell their goods in an attractive and engaging way. Short videos on TikTok can help sellers expand their customer base and boost profits.
After the deployment of TikTok Shop, over 150 million customers can now buy goods directly from the app. Therefore, users no longer need to look for where to buy the product they saw while they were relaxing and scrolling through the feed. TikTok Shop has made shopping a part of the entertainment experience, giving businesses access to targeted customers.
The main benefits of selling on TikTok Shop:
- Engaging Content Format: TikTok is known for its short, addictive video content. Businesses can use this format to create visually appealing product presentations, promotions, and ads, potentially increasing customer engagement.
- Massive User Base: Selling on TikTok Shop offers businesses access to a large, engaged audience that highly trusts video and user-generated content. TikTok has also changed the approach to product search, attracting different age generations.In addition, many global brands have come to TikTok, leading their followers there.
- In-app Purchases: TikTok Shop offers in-app purchases, simplifying the purchasing process for users interested in a product they have seen in a video. It ensures higher conversion rates as customers can make purchases without leaving the TikTok app, where they also spend their free time.
- Product Links: TikTok Shop enables creators and brands to link products in videos and offers other unique ways to showcase products, such as live streams.
- Improved Brand Awareness: Selling on the TikTok Shop can give businesses wider visibility and publicity. Recommended products are introduced to more comprehensive potential customers, which helps to boost brand awareness and product interest.
- Creativity of User-Generated Content: TikTok is popular for its user-generated content. Companies can leverage this by encouraging users to generate content featuring their products, which can provide free and authentic advertising for the business. Discover more about UGC as a key TikTok trend here.
- Targeted Ads: TikTok often provides advanced targeting options for advertisers. It can help businesses reach specific demographics or other audience categories, ensuring the most relevant potential customers see their products.
- Internal Analytics: TikTok Shop offers analytics tools that give businesses insights into customer behavior, preferences, and trends. This data can be valuable for improving sales strategies and product offerings.
- Community Development: Sales on TikTok Shop can help build a community around a business or a product. Companies have the ability to engage with their customers, respond to their comments and feedback, and build a sense of loyalty within their community.
- Multi-channel Integration: Sellers can connect TikTok Shop to their existing e-commerce platforms, such as Shopify, Ecwid, WooCommerce, Salesforce, BigCommerce, Magento, etc.
- Low Fees: You can join as a seller for free, but TikTok currently charges a 2% fee plus 30 cents per transaction to sellers and is expected to increase this amount to 8% till summer 2024. The platform could even cover some shipping discounts. So, it’s a profitable opportunity to dive into the world of e-commerce.
- Fulfilled by TikTok: TikTok Shop aims to develop a logistics offer — equivalent to Amazon’s FBA. Fulfilled by TikTok (FBT) is currently available in the UK, but there are plans to develop it. If you sell in the UK, you can send orders yourself, or TikTok Shop takes care of it, guaranteeing storage, picking, packaging, and delivery of sellers’ goods to the TikTok community.
In the case of self-delivery, TikTok Shop provides the list of UK-approved integrated logistics carriers. Sellers must choose one of the following TikTok Shop’s Approved Integrated Carriers. However, the platform has detected that some of these carriers do not meet customer expectations. They have problems with late delivery, frequent loss, and damage to parcels. In this regard, TikTok Shop will update the shipping carrier from 15 April 2024. Sellers will now be able to choose a carrier from the updated list:
− Royal Mail (Tracked 24®/48® RM Services ONLY)
− EVRi (Hermes)
− DPD UK
− Yodel UK
− Amazon Logistics
− UK Mail
− DHL UK
− Parcel Force
− Panther UK
− DX Delivery
- TikTok Shop also announced the launch of Star Shop Seller Program. The main goal of the “Star Store” program is to highlight outstanding merchants. It is intended to enhance the shopping experience on TikTok Shop by motivating and rewarding sellers with excellent commercial and operational performance.
The program is to be started from March 29, 2024. Currently, sellers do not need to take any action. Sellers can follow all updates in their Seller Center Announcements to learn more about Star Shop membership eligibility and details about the program launching soon.
What changes should shop owners expect:
- Star Shop sellers will receive the Star Shop Badge on their store and product pages plus increased visibility and traffic. Sellers’ compliance with the criteria will be reviewed monthly from the 26th of the current month to the 25th of the next month.
- Buyers will be able to see the performance of sellers, which will be displayed on the store page and on product listing pages. Among the performance criteria will be the average level of product satisfaction, the percentage of orders shipped in 2 days, and the response rate to customer requests in 24 hours.
- The store’s star rating will now represent the average rating given by customers. Previously, it was the store’s SPS.
- The SES/store rating will be renamed to the Shop Performance Score (SPS) and will still be measured in the same way.
- Buyers will be able to see seller’s rating in relation to other stores (SPS).
TikTok Business Account
Before selling on TikTok Shop, ensure you get a TikTok Business Account. With a Business Account, you unlock advanced features such as analytics and advertising tools that give you meaningful insights into your audience and the performance of your content on TikTok. TikTok Business Account is available for any business, regardless of size or type.
You can upgrade your existing personal account to a Business Account or create a new one for your business purposes.
To change the type of account from personal:
- Go to the TikTok app and log in to your account.
- Click the “Profile” tab and go to the profile homepage.
- Click the Menu button ☰ on the top right corner.
- Open the “Settings and privacy” page.
- Select “Account”.
- Tap “Switch to Business Account” and continue with the instructions to finish.
To start with a Business Account:
- Install the TikTok app from Google Play or the App Store.
- Then, sign up and set up a business account (it’s free).
- After registration, go to the “Commerce” tab and select “Create a Shop.” Follow the instructions to list products, set up payment options, and create a store design.
- You must link your product catalog to your TikTok account to sell on TikTok Shop. Open the TikTok Shop settings and enter your store details, including the store name, description, and website link. This step is crucial for potential customers to easily find and buy your products.
Sellers can use the Seller Center App to manage their store, inventory, orders, promotions, collaborations, ads, and customer service. TikTok offers direct integrations and connectors with WooCommerce, Salesforce, BigCommerce, Magento, and other leading e-commerce platforms.
If you have a store, you can import your products into TikTok using TikTok Magento (Adobe Commerce) integration by M2E without adding your entire catalog from scratch and benefit from the easy connection of the Magento store to TikTok Shop for Business. With the integration, you can seamlessly list products from your Magento store and link them to the suitable categories on TikTok Shop, maintain order management, and simply synchronize orders between your stores.
- Check out the TikTok Shop policies for sellers, and make sure you follow them. You can find out detailed instructions at TikTok Shop Academy. Before your products can appear in the TikTok Shop, they must be verified to comply with these instructions by TikTok.
- Create attractive content with links to products.
How to Sell on TikTok Shop: Guide 2024
For successful business on TikTok, review trends, product videos, and audience insights to track popular TikTok items. Use creative tools to generate unique and engaging product video content. Leverage key trending TikTok tools to engage your potential audience and build brand awareness as popular hashtags, trending sounds, and video effects.
We have gathered a detailed overview of TikTok Trends that will be helpful for your e-commerce businesses in 2024 here. We want to highlight a few more important aspects of selling in TikTok Shop:
- Identify Your Brand and Bio. Before you start selling on TikTok Shop, ensure your brand identity is clear and compelling. Craft a concise and appealing bio that introduces your brand to potential customers. Use this space to communicate your unique value proposition, mission, and what sets your products apart.
- Add a Call to Action. Encourage TikTok users to take action by placing persuasive CTAs on your videos and profile. Whether it’s asking viewers to visit your TikTok store, view your latest collection, or take advantage of a special coupon, a well-placed CTA can drive engagement and conversions.
- Create Engaging Content. Capture the attention of your audience with creative and engaging content. Leverage TikTok’s short video format to showcase your products in a visually appealing and entertaining way. Experiment with trending challenges, effects, and music to make your content resonate with TikTok’s diverse user base.
- Collaborate With Influencers. Cooperation with TikTok influencers can significantly enhance your reach and brand credibility. Look for influencers whose audience matches your target market and collaborate with them to generate authentic content about your products.
- Product Showcase. Dedicate specific videos to showcase your products in detail. Highlight key features, demonstrate how they solve problems, and emphasize the benefits. Encourage user-generated content by asking customers to share their experiences with your products, creating a sense of community around your brand.
- Shoppable Videos. Leverage TikTok Shop’s shoppable features to make your videos directly actionable. Tag your products in videos, allowing users to seamlessly go from content consumption to product discovery and purchase. Make the shopping experience smooth and enjoyable for your audience.
- TikTok Live Shopping. TikTok Live Shopping is a unique feature that allows businesses to interact with their audience in real time. Host live streams to introduce new products, answer questions, and showcase exclusive behind-the-scenes events. Use TikTok Live Shopping to build a more personal connection with your customers and create a sense of urgency for limited-time promotions.
- TikTok Shop Ads. Running ads on TikTok Shop can help your products become more visible and drive targeted traffic to your store. Experiment with different ad formats, such as display ads, branded hashtags, and branded effects, to find what resonates best with your audience.
Combining these practices will help you position your business to succeed in the competitive world of e-commerce.
Summary
TikTok Shop is fundamentally changing the traditional concept of marketplaces, offering powerful tools for promoting business and presenting products to a huge audience of interested buyers in real time. Stay flexible, adapt to new trends, and constantly interact with your audience to achieve successful sales on TikTok Shop.