What is TikTok Shop? – Your Ultimate Guide to Understanding TikTok Shop

If trends like #TikTokMadeMeBuyIt tell us anything, it’s that TikTok influences buying decisions. And the introduction of TikTok Shopping features has made it even easier for brands to not only promote their products but also drive conversions directly within the app. Now merchants can list their products for sale on TikTok Shop while buyers can browse and buy those products—all without leaving the TikTok app.

So what is TikTok Shop, and why should it matter to you? In this post, we provide you with a deeper understanding of the shopping feature on TikTok and how to use it. Let’s get started.

What is TikTok Shop?

TikTok Shop is an in-app shopping feature that lets users discover, browse, and buy products right within the TikTok app. Officially launched in the U.S. in September 2023, this feature lets merchants and creators list products for sale in the app. 

Instead of sharing product links that would take users outside the app, sellers can now share TikTok Shop product links where buyers can view product details, select their preferences, and checkout—all within TikTok. This simplifies the buying journey, as customers don’t have to leave the platform to find or buy the product.

How Does TikTok Shop Work?

TikTok Shop allows sellers and creators to list products for sale on the platform. Like a regular product page, these product listings will contain all the essential information that a customer might need to make a purchase, such as price, product description, ratings, and more. Buyers can discover these listed products through four different ways in the app:

Shop Tab

TikTok has a dedicated Shop tab where buyers can explore shoppable products across various categories. This page also displays daily deals and personalized recommendations tailored to the preferences and habits of each user. 

Shoppable Videos

TikTok Shop buyers can also discover products through shoppable videos. These are in-feed videos that include shoppable product links. If a buyer clicks on the product link, it will open an expanded view of the product, where they can view more details. They can also add the product to their cart or buy it instantly using the “Buy now” button.

Product Showcase/Shop Page

Brands and creators can also display their product catalogs within their respective accounts. Buyers can access the TikTok Shop page for sellers under a dedicated product showcase tab when they visit the seller’s TikTok page. 

Live Shopping

TikTok also lets brands and creators display shoppable products in their livestreams. This TikTok live shopping feature makes it easy for viewers to instantly add products to their carts after discovering them in the livestream.

Who Can Use TikTok Shop?

TikTok Shop is currently available to sellers and creators in select regions. At the time of writing this post, the supported regions are: 

• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• United Kingdom
• United States
• Vietnam

If you’re from any of these regions, you’ll be able to use TikTok Shop as a seller, creator, or buyer. You can also sign up as a TikTok Shop Partner if you provide tools and services that can be used by sellers and creators using the platform.

TikTok Shop for Sellers 

TikTop Shop allows sellers to showcase and sell their products to buyers on the platform. Brands and small businesses can list their products for sale on their profiles or link shoppable products in their videos and livestreams. They can also display their products on the TikTok Shop Marketplace to make them discoverable in the Shop tab.

Sellers can even make use of services such as Fulfilled by TikTok. Provided in partnership with third-party logistics services such as ShipBob, this TikTok fulfillment option lets you outsource the entire process of storing, picking, packing, and shipping your TikTok Shop orders. This helps you save time so you can focus on growing and managing your business.

TikTok Shop for Creators

Creators can use TikTok Shop features to promote the products they love and encourage direct purchases from their community. They can participate in the TikTok Affiliate Program and select items to feature from the TikTok Shop Marketplace. This will allow creators to earn a commission from the sales they help generate.

TikTok Shop for Shoppers

Shoppers on TikTok can discover new products through entertaining videos and livestreams from brands and creators and buy them directly on the app. They can also check out what their favorite creators are recommending by tapping on the Shop tab on their profile. Similarly, they can browse and buy products from their favorite brands by going to the Shop tab on the brand’s profile.

Additionally, TikTok Shop provides shoppers with deals and promotions that are tailored to their unique preferences. Once they’re ready to buy, they can checkout securely using reliable third-party payment platforms. Shoppers can also manage their orders within the app, with options to track, cancel, or return their orders.

TikTok Shop for Partners

If you offer an ecommerce service that could help sellers and creators sell more on TikTok Shop, you could also apply to be a Partner. TikTok Shop will recommend you to suitable sellers and brands, making it easier to generate highly qualified leads. 

Additionally, you could apply to be a Talent Agency to support creators on TikTok Shop. You’ll get to earn commissions for onboarding and developing creators.

What are the Benefits of Using TikTok Shop for Sellers and Creators?

Considering the wealth of features and benefits that TikTok Shop offers, there are a number of reasons for sellers and creators to use it. Let’s break down some of the main benefits of using TikTok Shop.

Enhance the Customer Experience

Customers no longer have to leave TikTok to find and buy the products they discover on the app. Instead, they can see all the information they need in one place and enjoy an uninterrupted browsing experience. So even if they’re interested in a product that you’re featuring in your video, they can instantly learn more about it without leaving the app.

Increase Conversions

Having to create an account and going through a lengthy and complicated checkout process often create barriers to purchase. These are some of the top reasons people abandon their shopping carts, which affects conversion rates.

TikTok Shop shortens the buying journey, which reduces friction and improves the chances of conversion. With three out of four users saying they’re likely to buy something while using the app, an in-app checkout experience is the key to earning those conversions.  Moreover, a secure and reliable checkout process increases trust, which further prevents the risk of cart abandonment.

Drive Repeat Purchases

According to the latest TikTok Shop stats, 81.2% of sales come from repeat customers. This shows that once customers have already experienced the ease of purchase and simplified buying journey, it becomes much easier to convert them again. So TikTok Shop is an excellent tool for driving repeat purchases and enhancing customer loyalty.

Generate More Revenue

For sellers, the increased sales and conversions will automatically translate to increased revenue. TikTok Shop also serves as an additional revenue stream for creators who participate in the Affiliate Program. You no longer have to ask your viewers to “check out the link in bio,” hoping that they’ll click on it and eventually convert. Instead, you can share shoppable links right within the video or live stream, making it easier for your audience to buy the products you promote.

As a result, you can generate more revenue in the form of commissions from those sales. Moreover, the ability to curate your favorite shoppable products and display them in your profile ensures that your followers can easily browse the products that you recommend.

Optimize the Fulfillment Experience

With services such as Fulfilled by TikTok, sellers can also optimize their fulfillment process. You can outsource all your fulfillment operations including storage, picking, packing, and shipping. If you were to handle all of these in-house, you’ll have to dedicate a significant portion of your human hours and resources just for fulfillment. Not to mention the cost of renting and managing storage space.

Instead, you can leave it all to fulfillment experts who can quickly get your TikTok Shop orders out the door and deliver them to your customer’s doorstep. This seamless fulfillment process further adds to the customer experience, helping you earn their loyalty.

TikTok Shop Features and Business Tools

1. Product Showcase

Source: seller-uk.tiktok.com

Not to be confused with TikTok Shop itself, the Product Showcase tab is a feature that sellers can use to allow potential buyers to buy directly via their account. The tab appears on the profile’s page and can show all of the products uploaded to TikTok Shop or just some of its inventory.  

2. Fulfilled by TikTok

To help merchants, TikTok also offers a fulfillment service. This logistics solution will pick the products, package and ship them to the customer. Considering that speedy delivery is key to keeping customers happy and can speed up your payouts, ensure that your fulfillment process is smooth sailing. 

3. Shop Ads

Via the Seller Center, you also have the option of creating Shop Ads. Found below the Ads section, you click the Create Campaign button, select Product Sales as the objective and then pick TikTok Shop as the product source. 

4. Third-party integrations

To help you streamline business operations, there’s also the TikTok Shop App and Service Store. Here, you’ll find connector apps like AfterShip and a variety of other additional apps like Yotpo for customer reviews and Printful for print-on demand merch. 

For those taking an omnichannel approach, there’s also partnerships and direct integrations with leading eCommerce platforms like: 

• Shopify 
• WooCommerce  
• BigCommerce

5. Creator analytics for sellers

One of the latest features it introduced is new, customized reporting features helping sellers to monitor the results of collaborations. You can, for example, use aggregated core data to analyze all your creators or zoom in on the performance of individual creators. 

6. Target coupons

Target coupons is another new feature. Using this promotional feature, you can highlight your best products to specific groups to grow a certain customer base or strengthen relationships with recurring customers. 

How to Sell on TikTok Shop

If all these benefits sound great (as they should), you’re probably excited to start selling on TikTok Shop. Follow the steps below to set up your TikTok Shop.

Step 1: Register for a TikTok Seller Account

To start selling on TikTok Shop, you’ll need to sign up for a TikTok Seller Account. You can register for one using an existing TikTok account or start fresh with a phone number or email.

Complete the registration process by providing all the essential information about your business. This will include your business name and address, country or region, contact person, and phone number. You’ll also need to specify a return address so carriers know where to direct return shipments.

Source: seller-us-accounts.tiktok.com

Step 2: Verify Your Information

Once you’ve shared all the necessary information, you’ll need to upload supporting documents to verify it. TikTok needs to verify that you’re eligible to set up a TikTok Shop, so this is a vital step to start selling on the platform.

Source: seller.tiktok.com

TikTok will ask for documents to verify your identity. If you’re an individually-owned business, you can upload your passport, driver’s license, or national ID. Corporations will need to upload an equivalent document of the company director, legal representative, or person with significant control.

In addition to identity proof, you’ll also need documents verifying that you’re eligible to sell your products under applicable law. You could upload your business license or registration for this.

Step 3: Add Products to Your Shop

After the verification process, you can start adding products to your TikTok Shop. Instead of adding your entire product catalog to the Shop, consider starting with your best-selling items. This will make it more manageable so you can get acquainted with the platform and learn how to make the most of it.

Source: seller-uk.tiktok.com

Step 4: Link Your Bank Account

Don’t skip the step to link your TikTok Shop to your bank account before you start selling. This will ensure that you’re getting paid for the purchases. In addition to your account number and name, you’ll need to include your email address and building number.

Step 5: Promote Your TikTok Shop

To start generating sales from TikTok Shop, make sure you’re effectively promoting it. Create content to inform your viewers about the new feature and encourage them to check out your Shop tab. Feature your best-selling and popular products in your videos and add shoppable product links. 

Best Practices and Tips for Selling on TikTok Shop

Setting up a TikTok Shop is just half the job done. If you’re going to drive sales on the platform, make sure to follow these TikTok Shop tips.

1. Teach Shoppers How to Buy

TikTok Shop is still fairly new, which means many users might not be familiar with how to buy. Some might not even know that there’s an option to buy products directly within the TikTok app.

Start by bridging this knowledge gap and guide your customers through the process. Create a video where you share detailed steps on how to buy your products on TikTok Shop. Make sure to pin this video so it’s easily accessible for new customers.

Additionally, you can share a quick reminder in your shoppable videos and livestreams. Include a call-to-action encouraging people to click on the product link and briefly explain the process. See how Wyze includes an arrow indicating where to click to access the shoppable product link.

@wyze Have you seen how amazing Wyze Cam Pan v3 is? 🫨 Get one for yourself right here in our Tik Tok Shop! 🫶 #wyze #wyzecampanv3 #bestseller #tiktokshop #wyzehomesecurity ♬ Backrooms. - Deaven Wink

2. Optimize Your Product Listings

The whole point of using TikTok Shop is so customers can complete their purchases in the app. Make it easier for them to do this by optimizing your listings with all the necessary information that they might need before deciding to buy the product. 

Start with a product title that’s easy to read. Using title case instead of sentence case is an essential step for this. 

Since product titles can only be up to 80 characters, include only the actual name of the product. Avoid adding promotional words such as “best,” “cheap,” “affordable,” etc. Not only do these words take up valuable space, but they may also seem spammy and unreliable. 

For instance, Revolve includes the brand name, product type, and color in the title.

Additionally, write detailed product descriptions that help highlight the benefits and features. Consider using bulleted lists to make the description easier to read. Including relevant keywords in the description will also improve product visibility.

3. Create Engaging Shoppable Videos

The TikTok platform is all about entertainment. So even your shoppable videos need to incorporate this element to engage your audience.

Instead of simply sharing a salesy promo video, be more strategic with your approach and focus on creating videos that your target audience wants to see. Think of videos with instructions on how to use the product, creative ideas to highlight various use cases, authentic reviews to build trust, and more.

Look at the types of videos that are trending in your niche. These will give you an idea of the types of videos that your audience finds engaging. You could then use these videos as inspiration for your next shoppable video.

KimChi Chic Beauty makes use of entertaining videos from creators who feature the brand’s products. From informative review videos to hilarious demo videos—these creator-led shoppable videos are a great way to drive sales for the brand.

@kimchichicWe mean it when we say the queens don't play around with Puff Puff Pass 🤭 Rumor has it @gabrielthequeen is still patting on some powder as we speak 😶‍🌫️ Set that face! Tap to grab this drag-approved powder!♬ 1901 - Instrumental - Phoenix

4. Promote New Products through Live Shopping

TikTok LIVE creates an opportunity for real-time interactions, making it an ideal channel for product launch promos. You could leverage this feature to showcase your latest products along with shoppable links where your customers can instantly buy them.

Use live shopping to demonstrate your newly launched product, so customers can get a better view before they decide to buy it. This enables them to get a sense of how the product looks in real life (albeit virtually) compared to what they see on the product page. You can also show them how to use it or provide some use cases to further inspire their buying decision.

5. Create Limited-Time Deals and Offers

Speaking of live shopping, you can also use it to share limited-time discounts and offers. With the time-sensitive nature of these videos, they’re a great way to create a sense of urgency and drive impulse purchases. Plus, the promise of a great deal could compel many people to tune into the live broadcast.

Zuumtech makes the most of live sessions to promote limited-time deals and coupons. Whenever they go live, they share a regular in-feed video to let their followers know about it so they can get more people to tune in and grab the deal.

@zuumtech BACK IN STOCK!! Join the live and grab the deals!! #zuums #backinstock #zuumtech #TikTokShop #tiktokshopdeals #cooltech #techthisout ♬ original sound - zuumtech

Real-life Success Stories

A wide range of industries has generated a substantial sum of sales via TikTok Shop. Here’s the growth that you can expect, along with tips from successful sellers. 

1. Benefit Cosmetics

@benefitcosmetics

Benefit Cosmetics is a global makeup brand that uses TikTok Shop to keep their fun identity. To promote their TikTok Shop launch, they hosted short videos and LIVEs. 

Within only three days of their launch, they already saw a significant increase in organic followers and engagement. The results — 2,500 new followers and more than 100 times the number of LIVE likes.   

2. Aroma Energy

@aromaenergyuk

Aroma Energy is no stranger to eCommerce platforms. Thanks to word-of-mouth advertising, this veteran in the eCommerce space decided to give TikTok Shop a go too. 

Leveraging features like its affiliate program and ads, it generated nearly £25,000 in gross merchandise value (GMV) in a single month. Without using LIVE yet, video views are also gaining momentum and in one week it generated over 48,000 views. 

Their advice to other sellers is to explore multiple selling strategies. The Shop Tab and network of affiliates have been essential to their success thus far. Analytics have also empowered them to improve their response rate and ensure a high customer satisfaction rate.  

3. Rebellious Fashion 

@rebellious_fashion

Rebellious Fashion sells what they describe as “best statement looks or everyday basics” for young women. They turned to TikTok Shop’s affiliate program to leverage TikTok creators. 

Within just three months of joining the program, their product sales increased by 400%. Atif Faiz, founder of the online fashion retailer, highlights the built-in tracking and attribution as key features. 

4. Doug’s Vintage

@dougsvintage

Practically anything can be turned into a successful venture as Doug’s Vintage shows — even vintage Pokémon cards. It was during a move that he discovered his collection of classic cards and thought that a new platform would be the best place to sell these old cards. Think of it as an old-meets-new success story. 

After joining TikTok Shop, he used LIVE to share his knowledge and cards. This channel proved extremely successful and during a single LIVE session he generated over £15,000 in sales. In two months, his total GMV topped the £100K mark. 

His three top tips to fellow sellers:

• Continue to put efforts into your LIVEs
• Use features like vouchers and coupons
• Leverage TikTok Shop’s support on offer

What Does TikTok Shop’s Future Hold In Store

So far, it’s getting mixed responses. That said, it’s still early days. 

For example, Abby Ohlheiser, senior tech writer at Vox, has described it as “a mix of Amazon and Wish or Temu”. She points out that big, verified brands’ products are sold next to cheaper goods which seem counterfeit or scammy. Her biggest complaint, though, was that after browsing it, her For You page changed and was flooded by ads. 

The New York Times also reported on a similar trend. In an article, TikTok Popularizes Products. Can It Sell Them Too?, it reveals that the platform actually explained that it’s actively driving videos with shopping buttons into the feeds of its users. TikTok is quoted as admitting that it has an aggressive plan.  

Even with this aggressive marketing plan, brands aren’t necessarily seeing the same success that those in the Asia-Pacific region (APAC) are enjoying. Craig Brommers, the chief marketing officer at American Eagle, is quoted as saying that the viewership that the chain’s live shopping events drew was well below APAC’s numbers. 

Yet, his brand is still eager to explore TikTok Shop’s tools. The fashion brand’s willingness to give TikTok more time is driven by their search for ways to make online shopping for Gen Z audiences more seamless. After all, unlikely brands like Manscaped and ACCA have gotten Gen Z’s approval on the platform even before innovative shopping features like TikTok Shop.

User experience aside, adoption is also getting mixed responses at this time. According to the Statista Research Department, a third of shoppers who use TikTok on a daily basis haven’t used it yet. They’re also not interested in trying it out. On the other hand, about 30% of those who use the platform each day have used it before. So, it’s currently a pretty even split.  

TikTok’s own numbers paint a similar picture. According to the TikTok Marketing Science Global eCommerce Study completed by Material, a quarter of TikTok users have shown interest in buying via TikTok LIVE. 

That said, estimates indicate that by 2026 about 40 million TikTok social buyers would’ve bought directly through the app or via links shared on the app. 

Considering that TikTok Shop is all about removing friction from the checkout experience, it’s already optimized for mobile users, and it incorporates social proof, it ticks many boxes for online selling. Perhaps TikTok Shop’s biggest threat is the looming threat to ban TikTok in the US. Time will tell. 

Grow with TikTok Shop

With the ability to streamline the buying experience, TikTok Shop creates plenty of opportunities to maximize your sales. However, you need to be strategic with your approach if you’re going to get people to convert. In addition to the tips we shared above, check out our detailed guide on TikTok Shop strategies to improve your chances of success on the platform.

About the Author

Koba Molenaar

Writer

Koba Molenaar brings nearly a decade of rich experience in content writing, specializing in digital marketing, branding, SaaS, and eCommerce. Her passion for helping brands, from solopreneurs to established companies, connect with their audiences shines through her work. As a member of the Golden Key International Honor Society, Koba’s commitment to excellence is evident in her work, showcasing her as a relatable and knowledgeable voice in the industry.