Selling on TikTok Shop: How to Set Up & Optimize Your Store
TikTok has exploded in popularity, doubling its user base since 2020, and expecting to surpass 900 million users globally by 2024. In the US alone, its user base grew by over 1,200% from 2019 to 2023.
To leverage this growth, TikTok launched the TikTok Shop, aiming to revolutionize the ecommerce experience on the app. And with recent updates to their fulfillment network and seller fees, TikTok Shop is poised to become a marketplace that will rival Facebook, Amazon, and Etsy.
In this post, we’ll explain what TikTok Shop is, and how it works, then provide step-by-step instructions for setting up your own shop.
What is TikTok Shop?
TikTok Shop is a shopping platform located within the TikTok platform. It merges TikTok’s short-form video content with ecommerce functionality, letting users find and browse products directly within the app.
The shop includes shoppable links and an in-app checkout which makes it easy for brands to leverage user-generated content and influencer partnerships for sales. It’s free to set up (if you’re eligible) and TikTok only charges an 8% commission on sales—compared to 8-20% on Amazon.
TikTok promotes shops through the main TikTok feed, and brands have a shopping tab on their profile that lets them generate traffic by posting. Further, TikTok’s advanced recommendation algorithms and targeting capabilities make it easy to showcase products that align with user preferences and interests.
Who Can Use the TikTok Shop?
The TikTok shop is currently only available in the US, UK, Vietnam, Thailand, Singapore, Philippines, Malaysia, and Indonesia (but more countries are being added over time). If you’re in any of these regions, you can start a TikTok shop as a Seller, Creator, or Partner. Let’s cover the definition and eligibility requirements for each type:
Sellers
Sellers are businesses or individuals who offer products through TikTok’s shopping feature. They set up their storefront, list products, handle prices, and earn money through products sold on the platform. They can also easily use the platform to promote their products with TikTok’s advertising features and collaborate with influencers to drive engagement and sales.
To become a seller on TikTok, a brand needs to:
- Verify the existence of the business and provide company registration information
- Provide tax details
- Link the business’s bank account
- Prove their identity with official documents (for individual applicants)
Once set up, sellers can use the TikTok Seller Center as an ecommerce platform. It provides complete ecommerce functionality, from operations management to customer service and performance analysis.
Creators
Creators produce content on TikTok and use their influence to promote products. They generally focus on creating engaging or informative content, earning commissions by recommending products with affiliate links or through direct collaboration with sellers.
There are three types of creators:
- Official Shop Creators are creator accounts that are bound to a seller account. They promote products from the official shop but do not have access to the Affiliate Product Marketplace. Unlike other creator types, Official Shop Creators don’t need a minimum number of followers to get started.
- Marketing Creators are also linked to a seller account. However, they need a minimum of 5,000 followers to get started and have access to the Affiliate Product Marketplace.
- Affiliate Creators are individual accounts that have access to the Affiliate Product Marketplace. They need 5,000 followers and must apply to be a creator if they’d like to join the program. Instead of selling products directly, Affiliate Creators act as affiliate marketers and take a commission on products sold.
There are additional requirements depending on which country you’re from and what type of creator you want to become.
Partners
Partners include agencies, service providers, and platforms that support and collaborate with both creators and sellers. They might offer services like marketing and fulfillment, or integrate directly with TikTok to enhance its ecommerce capabilities.
Partners generally earn commissions based on their services. For instance, they might receive a percentage cut from sales or take a fee for their services. Examples of partner services include optimizing TikTok shops, managing ad campaigns, and using data analytics to improve sales performance.
How TikTok Shop Works
TikTok Shop is an online store nested within the app where people can make purchases based on the content they’ve seen. It improves the discoverability of products, letting people easily research products they like within the platform.
How to Access TikTok Shop
There are a few ways for users to access TikTok Shop:
- The Shopping Center: At the top of the home page, users can tap the Shop icon to browse the TikTok Shop. This will show a range of products that they can add to their cart and checkout immediately.
- Shoppable videos: These are regular TikTok videos that tag a particular product. They can include user-generated content or videos your brand creates. When someone watches the video, they’ll have the option to head to your shop and make a purchase.
- Shoppable ads: These ads are a form of interactive advertising that showcases your products in video form. They appear in users’ “For You” feeds and include clickable shopping links that direct them to your product page.
- Live shopping: TikTok influencers and brands can livestream and showcase products to their viewers in real time. Viewers can purchase items directly from the livestream.
- Product showcase: As a TikTok seller, you can set up a product showcase on your profile to highlight key products in a grid format. Your followers can access the showcase by heading to your profile and selecting the “Showcase” icon at the top of your feed.
Fulfillment and Secure Checkout
TikTok has made it easier for brands to ship and sell on the platform by offering Fulfilled by TikTok. This fulfillment service encompasses inventory storage, order picking, packaging, and shipping, streamlining the inventory and logistics process.
While the program should simplify fulfillment and provide a great customer experience, keep in mind that this program is still new. Brands leveraging Fulfilled by TikTok should monitor prices, returns, and user reviews to ensure all is running smoothly.
TikTok’s secure checkout system is another crucial feature. Customers can be hesitant to shop on a new platform, especially if they’re getting a great value from products. For example, approximately 17% of customers will abandon their purchase if they don’t trust the checkout system. By offering a secure checkout system directly within the app, customers may find TikTok Shop more trustworthy than a new, unknown brand’s ecommerce site.
Why Sell on TikTok Shop?
With a vast, highly interactive user base, the TikTok Shop enables brands to reach new audiences, drive sales, and build deeper connections with customers. Here’s why you should sell on the TikTok shop:
- It has a massive user base: TikTok is one of the largest social media channels, with 62% of US adults aged 18-29 active on the platform.
- TikTok users want to buy: The TikTok user base is highly interested in shopping. 67% of users report TikTok sparked interest in a new product or brand and 74% of Gen Z users use TikTok specifically for product searches.
- People may already be talking about your products there: One in four users show off products they bought on TikTok and opening a shop can reduce friction in the buying process.
Overall, TikTok is shaping up to be one of the most sophisticated social commerce channels. As mobile ecommerce grows, TikTok Shop will bring organic value and incremental revenue to brands just by being attached to their profile. It will become a home base for creator partnerships, and provide a way to craft a full-funnel marketing strategy within the platform.
Brands that already heavily leverage influencers on the platform or partake in programs like TikTok Creator Led Packages (TCLP) will be uniquely positioned to quickly capitalize on TikTok Shop due to the strong relationship between whitelisting and incremental revenue driven by the platform.
How to Start Selling on TikTok Shop
In this section, we’ll guide you through the key steps to set up your TikTok shop, from account creation to optimizing your storefront. Keep in mind that the entire process can take around 48 hours to complete.
1. Set Up Your TikTok Shop Account
Visit the TikTok Seller Center and select the region you’d like to sell in. If you already have a business account, sign in. If you don’t, you’ll need to register for a new business account.
If you already have a business account, log in to it. If you don’t, you’ll need to register for a business account by selecting “Sign up now”. Provide your basic information and any business documents TikTok requires to verify your identity.
You’ll need to provide information such as whether you’re an individual or corporation, your shop name, business registration number, and official address. TikTok will also ask for some information about the individual in charge of selling, as well as basic payment and tax information.
After submitting your information, give TikTok 24 hours to enter and verify your details. Then, you’re ready to start adding products.
2. Add Your Product Catalog
Once TikTok approves your business account, go to your dashboard. Look for “Add your first product” and click on “Get Started”. A popup will appear allowing you to upload products manually or import them automatically from another ecommerce platform.
Automatic (recommended)
If you already have an ecommerce presence, the “Automatic (recommended)” choice is the simplest method.
Once you select this option, you’ll access the App & Service Store. Scan the list of Integrated & Serviceable Platforms and install the connectivity app that you prefer.
The app should provide a simple series of prompts that will let you sync your product catalog in a few clicks. Red text indicates that there’s missing information that you need to provide.
Double-check your product details are correct, then select “Sync” on the right of the product preview. Within 24 hours, TikTok should approve your products for sale.
Manual
To upload your products manually, you’ll need to upload a spreadsheet that contains your product details. Click the “Upload Now” button and download the template.
Fill out the template spreadsheet with the necessary product information along with examples. You’ll need to add a product category, brand name, product name, product description, and shipping information.
The next step is to upload the spreadsheet. Select “Upload spreadsheet” and choose the file that you just filled out. TikTok will display previews of your product images—if everything looks correct, select “Confirm to Start Import”.
It’ll take another 24 hours or so for TikTok to approve your listings.
3. Link Your TikTok Shop with Your TikTok Account
Next, you need to link your TikTok Shop with your account. To do so, go back to the main TikTok Shop dashboard and select “Connect your shop to a TikTok account.”
You can add an official account and any marketing accounts on this page titled “Linked TikTok Accounts”. Choose “Link Official Account” to get a QR code and directions for how to connect your business account with your TikTok shop.
How to Advertise Your TikTok Shop
Once you’re approved to sell, it’s time to attract customers to your shop. Here are some of the best ways to get the word out:
Affiliate Programs
Affiliate programs are easy to set up—you simply put out a call to creators to promote your product in exchange for a portion of the sales. Go to the TikTok Seller Center, select “Affiliate Marketing,” and choose from a Shop, Targeted, or Open Plan.
Shop plans let you set a simple commission rate, Targeted plans let you contact certain creators, and Open plans allow creators to apply to promote your product—only making money once you approve them.
Tag Products in Organic Posts
TikTok makes it easy to promote products with organic content that you produce yourself. Upload your video, then when you get to the screen that lets you add a description, select “Add link”. Find your product, click “Add”, add the product’s name, and click “Add” one more time. You can repeat this for all of the products you’d like to promote in your video.
Shop Ads
You can create shop ads with the TikTok Ads Manager. Create a new campaign and set Product Sales as your goal and TikTok Shop as the source. Add other campaign info as you would for a normal TikTok ad campaign, but make sure to select “Video Shopping Ads” and only target users over 18.
User-Generated Content and Influencers
The final way to advertise is by encouraging people to create their own content to promote your products. For example, you could set a challenge or branded hashtag with an incentive for people to post and link your products. Influencers can be extremely helpful for kicking these campaigns off since their followers are more likely to jump on board if they have already.
By using a mixture of these tactics, you can make sure that everyone knows you’re open for business. Remember to keep things fun—people go on TikTok to find entertainment. If you engage and entertain them while showcasing your products, they’ll be more likely to buy from you.
Other Best Practices for TikTok Sellers
When it comes to selling on TikTok, there are a few ways to boost your reach and convert more viewers. Here are some best practices to consider for your TikTok Shop:
- Optimize your product catalog: Make sure your catalog is well-organized and user-friendly, making it easy for users to browse and find what they want. Categorize your products correctly, use consistent naming conventions, and make sure all products are accurately described to boost searchability with TikTok’s algorithm.
- Use high-quality images: High-quality images capture customer interest and boost trust. Use clear, well-lit photos that accurately represent your products. Professional-looking images can improve the perceived value of your products and encourage higher sales.
- Use short titles: Keep your titles under 34 characters to prevent truncation. Lead with important information about your product, rather than your brand name. Highlight a key feature or a unique selling point to ensure users understand what you’re offering.
- Include important information: Include key details like size, color, material, and features in the description. This will reduce the likelihood of returns due to unmet expectations.
- Fill out your TikTok bio: Your TikTok bio should explain who you are and what your brand offers. Provide a compelling description, a link to your website or ecommerce store, and a call-to-action that encourages users to follow or shop.
- Create content beyond advertising: You need to entertain the viewer first and sell second. If your content is too promotional, people will quickly swipe away. Things like behind-the-scenes videos, user-generated content, tutorials, and entertaining clips can help communicate your brand’s voice in a way that resonates with your audience.
- Capitalize on trends: Stay up-to-date with TikTok trends and use them in your content strategy. For example, you could participate in viral challenges, use trending sounds, or incorporate popular hashtags that align with your brand.
- Partner with creators and influencers: Up to 45% of TikTok users shop based on influencer recommendations. If you’re new to the platform, existing creators and influencers are a great tool to see how advertising on the platform should work as they’re much more familiar with the culture.
What’s Next for the TikTok Shop?
TikTok Shop is revolutionizing the ecommerce landscape by merging social engagement with seamless shopping. As mobile ecommerce becomes commonplace, more big brands are expected to join TikTok Shop, leveraging its unique format to connect with audiences. It’s also poised to expand to more countries, making it an increasingly global marketplace.
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