- TikTok is investing heavily in e-commerce with its TikTok Shop program.
- The company has offered perks to both sellers and creators who join.
- Here's what sellers, small businesses, and influencers should know about using Shop.
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TikTok is investing heavily in e-commerce with its TikTok Shop program, offering perks to brands and creators who participate.
Getting started on TikTok Shop as a seller is simple. Brands and small businesses need to apply on the TikTok Seller Center portal and upload documents for verification. The feature is available in countries including the US, Vietnam, Singapore, the UK, and Thailand.
Read a 9-page document from TikTok detailing how to get started on Shop as a merchant and best practices
The primary way creators and brands can help boost sales is through affiliate marketing. Brands give a percentage of each sale to creators who promote the brand's products. Sellers set their own commission rates, which usually range between 5% and 20%, according to creators and a TikTok exec.
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Read about what TikTok Shop can offer brands, according to an exec who spearheads the program
How to start a TikTok Shop as a seller
Brands can join TikTok Shop by applying on the platform's website.
Once accepted to the program, they can set up their own product showcase on their TikTok profile and pay creators a commission to promote items through affiliate marketing. Sellers set their own commission rates, and they can choose between a couple of affiliate plans:
- "Open" collaboration, with all or selected products and the ability to set varying commission rates;
- "Targeted" collaboration, which allows merchants to choose the creators they want to partner with.
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Merchants can access a Seller Center App to manage their shop, inventory, orders, promotions, creator collaborations, and customer service. Sellers can also integrate third-party e-commerce platforms, like Shopify, Square, Ecwid, and BigCommerce.
Is TikTok Shop free for sellers? You can register for free as a seller, but TikTok currently takes a 2% commission combined with a 30 cents per transaction fee from merchants, with plans to increase that to 8% in July.
When setting up a Shop on TikTok, sellers should read the company's list of prohibited items. Sometimes, goods that are initially approved, such as homemade foods, can be taken down for not complying with the company's terms. Sellers should also be aware that TikTok uses a combination of AI and manual reviews to track product listings, which has caused headaches for some merchants who have had to appeal violation claims they view as unwarranted.
Sellers should also pay close attention to TikTok's shipping and order fulfillment rules, as the company can issue violations when a merchant fails to ship within its required three-day window for items sold in the US.
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Read more about TikTok's three-day shipping requirements for sellers
What TikTok Shop offers sellers
As TikTok worked to woo merchants, it began offering perks such as free shipping and discounts for new sellers.
Read about how TikTok subsidized shipping and hawked 30% discounts as it raced to onboard US sellers
TikTok occasionally puts together special promotions to encourage sellers to post videos, go live, and hopefully drum up sales. During its push around Black Friday and Cyber Monday in 2023, the company ran a series of seller competitions and other offers, including coupons to promote their videos in the app.
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Read more about TikTok's Black Friday and Cyber Monday strategy
Some independent sellers told Business Insider that Shop has been lucrative for them. One creator who signed up to sell his independently published books on TikTok was able to quit his job as a nurse and focus on writing full time.
Check out how Adam Beswick used TikTok Shop to become a full-time author
However, not all brands are on board with Shop, and getting blue-chip corporations to start selling on the app has been particularly difficult, BI reported.
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Read more about how TikTok is pitching to marketers to get them onto Shop
The company has plans to not only onboard third-party merchants, but also to start selling items directly. It launched a product page with this aim in the UK, "Trendy Beat," and reportedly has plans to emulate this strategy in the US.
How to start earning money as a creator
Creators can apply to start selling on Shop when they meet the platform's community guidelines and other criteria, such as being at least 18 years old and having at least 5,000 followers.
Several creators told BI they've been making thousands of dollars on Shop and getting millions of views on their affiliate content
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Creators (and brands) have three ways to sell on TikTok Shop, according to a document the company shared during a recent web summit:
- Livestreaming: creators can go live on the platform and promote products to their viewers;
- Shoppable videos: creators can link to products on the videos that they publish on the profile;
- Product showcases: creators can list their favorite products in a dedicated showcase at the top of their profile.
On TikTok Shop, creators earn money through affiliate commissions. When they advertise a product in their content, they receive a cut of the sales they generate.
TikTok has also offered creators bonuses, perks, and various exclusive programs to get them to use Shop.
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Check out the perks TikTok has offered to woo creators to use Shop
Tips for live selling
TikTok Shop encourages merchants to sell in livestreams, in addition to posting videos and enlisting influencers to push products.
The company recommends that sellers go live for at least two hours at a time when pitching products on lives.
Some merchants, such as electronics retailer Newegg and luxury goods reseller What Goes Around Comes Around, are aiming for longer stretches, such as eight or even 24-hour streams.
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"The longer you can stay in, the more people you can bring in to comment and things like that," Newegg's media services director Drew Roder told BI.
Read more about TikTok's recommendations for selling on livestreams
Insights, advice, suggestions, feedback and comments from experts
As an expert and enthusiast, I have access to a wide range of information and can provide insights on various topics. While I cannot demonstrate first-hand expertise or personal experiences, I can provide information based on reliable sources. Now, let's dive into the concepts mentioned in the article about TikTok Shop.
TikTok Shop Program
TikTok is investing heavily in e-commerce with its TikTok Shop program. This program offers perks to both sellers and creators who join. Sellers, small businesses, and influencers can participate in TikTok Shop to promote and sell products on the platform.
Getting Started on TikTok Shop as a Seller
To get started on TikTok Shop as a seller, brands and small businesses need to apply on the TikTok Seller Center portal and upload the required documents for verification. This feature is currently available in countries including the US, Vietnam, Singapore, the UK, and Thailand.
Affiliate Marketing
The primary way creators and brands can boost sales on TikTok Shop is through affiliate marketing. Brands give a percentage of each sale to creators who promote their products. Sellers can set their own commission rates, which usually range between 5% and 20%.
Joining TikTok Shop as a Seller
Brands can join TikTok Shop by applying on the platform's website. Once accepted into the program, they can set up their own product showcase on their TikTok profile and pay creators a commission to promote items through affiliate marketing. Sellers can choose between "Open" collaboration, where all or selected products are available for collaboration with varying commission rates, or "Targeted" collaboration, which allows merchants to choose specific creators to partner with .
Seller Center App and Integration with E-commerce Platforms
Merchants can access a Seller Center App to manage their shop, inventory, orders, promotions, creator collaborations, and customer service. Additionally, sellers can integrate third-party e-commerce platforms such as Shopify, Square, Ecwid, and BigCommerce with TikTok Shop.
TikTok Shop Fees
While registration as a seller on TikTok Shop is free, TikTok currently takes a 2% commission combined with a 30 cents per transaction fee from merchants. However, there are plans to increase the commission to 8% in July.
Shipping and Order Fulfillment Rules
Sellers should pay close attention to TikTok's shipping and order fulfillment rules. TikTok can issue violations if a merchant fails to ship within the required three-day window for items sold in the US.
Perks and Promotions for Sellers
TikTok occasionally offers perks such as free shipping and discounts to new sellers. During special promotions, TikTok runs seller competitions and other offers, including coupons to promote videos in the app.
Success Stories and Challenges
Some independent sellers have reported success with TikTok Shop. For example, one creator was able to quit their job as a nurse and focus on writing full time after selling independently published books on TikTok However, not all brands are on board with TikTok Shop, and getting blue-chip corporations to start selling on the app has been challenging.
Earning Money as a Creator
Creators can apply to start selling on TikTok Shop when they meet the platform's community guidelines and other criteria, such as having at least 5,000 followers and being at least 18 years old. Creators can earn money through affiliate commissions when they advertise products in their content.
Ways for Creators to Sell on TikTok Shop
Creators (and brands) have three ways to sell on TikTok Shop: livestreaming, shoppable videos, and product showcases. Livestreaming allows creators to go live on the platform and promote products to their viewers. Shoppable videos enable creators to link products in the videos they publish on their profile. Product showcases allow creators to list their favorite products in a dedicated showcase at the top of their profile.
Tips for Live Selling
TikTok Shop encourages merchants to sell in livestreams, in addition to posting videos and enlisting influencers to push products. The company recommends that sellers go live for at least two hours at a time when pitching products. Some merchants aim for longer livestreams, such as eight or even 24-hour streams, to engage more viewers.
These are the key concepts related to TikTok Shop mentioned in the article. If you have any more specific questions or need further information, feel free to ask!