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Ways to Grow Sales with TikTok
TikTok’s fully integrated commerce solution lets sellers “authentically connect with creators and communities to drive meaningful shopping experiences.
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8 Ways to Grow Sales With TikTok Shop

How’s your social commerce strategy these days? Are your accounts booming with engagement, or could your brand use a little pick-me-up? Do you ever wish there were a social media platform where users were actively looking to learn about and buy from brands?

Consider your wish granted with TikTok Shop. ✨

TikTok’s fully integrated commerce solution lets sellers “authentically connect with creators and communities to drive meaningful shopping experiences.”

But you don’t have to take our word for it. Have a look at some of these numbers, straight from the source:

  • 70% of TikTok users discover new brands and products on the platform
  • 75% of TikTok users are likely to purchase a product while using TikTok
  • 83% of users say that TikTok plays a role in purchase decisions

Sure, you might be thinking, TikTok works for makeup, fashion, electronics. But it’s not the right fit for my brand.

Maybe it’s not — but if you haven’t explored all this platform has to offer, you could be missing out on your next growth opportunity.

Is Selling on TikTok Worth It?

You know your business better than anyone. No e-commerce marketplace is a perfect fit for every brand. That said, TikTok’s in-app shopping feature sells more than $7 million worth of products every day.

Tarte Cosmetics, an American-Japanese cosmetics company, has seen more than 300,000 purchases on TikTok, with several products selling out during its Black Friday sale.

On the flip side, other brands have yet to unlock TikTok’s exponential sales potential. Clothing retailer PacSun has only generated about 10,000 sales on the platform.

There’s no question that TikTok audiences skew young. Among 18-34-year-olds, 22% of them reported making a purchase on TikTok in the past month. Compare that to 2% in the 55-65 demographic and 5% in 35-54.

However, those younger shoppers’ purchasing power is on the rise — so if you’re selling to anyone younger than 35, TikTok Shop should absolutely be on your radar.

How Does TikTok Shop Work?

If you haven’t spent much time on TikTok, it might be hard to visualize how to sell your products there.

According to TikTok, there are three ways users can shop:

  • LIVE Shopping: Sellers can “go LIVE” to engage with their audience and sell in real time via livestream.
  • Shoppable Video: Create entertaining video content that showcases your products.
  • Store Page: An in-app shop similar to other e-commerce storefronts.

Getting started with TikTok Shop is fairly straightforward. Sign up for a business account, fill out an application, add products to your shop, and start selling.

At the moment, only US-based brands can sell on TikTok Shop, so you’ll need a US phone number and passport. More on the application requirements in the FAQs below. 👇🏼

8 Tips to Grow Sales With TikTok Shop

Ready to give TikTok Shop a try? Here are eight tips to consider as you set up shop.

Promote Your Products With Engaging Content

An excellent TikTok video has a stellar hook, fun visuals, and of course, a strong, focused CTA. Generic videos just won’t cut it on this platform. Consider engaging potential customers out of the gate by telling a story, evoking emotion, or showcasing your product in an unexpected way. Think: product tutorials, customer success stories, and collaborative content.

Collaboration is Key

Speaking of collaboration, influencers are everything on TikTok. Team up with creators to promote your products via TikTok’s affiliate program. You can collaborate on sponsored content, run product seeding campaigns, and collect amazing user-generated content from trusted creators. And remember, it’s not the size of the audience that matters — it’s the fit of the partnership. An influencer with a small audience that’s squarely in your niche is invaluable.

Virality Starts With Hopping on Trends

If you decide to dive into TikTok for business, it’s time to polish up your algorithm game and set your sights on that coveted For You Page. Boost your product’s visibility and brand awareness by participating in TikTok challenges, using trending hashtags, and tailoring your content to what’s hot on the platform right now. Showing your brand’s personality by adding your own spin to trends can endear you to TikTok’s community-driven culture.

Optimize Your Storefront

A polished product catalog never goes out of style, regardless of platform. High-quality product photos and videos, product categorization, attention-grabbing titles, and keyword optimization are all best practices to improve your discoverability and conversions on TikTok.

Invest in Ads

Unlike other platforms, TikTok users aren’t put off by paid ad content. Well-crafted TikTok ads that feel native to the platform will help you reach highly-targeted audiences. Smaller brands might also appreciate that TikTok will create a free, personalized marketing plan based on your answers to a few questions.

Offer Exclusive Discounts

With LIVE Shopping and the real-time nature of TikTok shopping, flash deals and TikTok-specific promo codes can work well on this platform. A little FOMO with some scarcity sprinkled on top can spur viewers to make their purchase right now.

Cross Promote Your Other Stores

E-commerce sellers know the dangers of putting all their eggs in one basket. With TikTok’s legal status in question (more on that below), it’s crucial to put consistent effort into driving those audiences to your website and other stores like Amazon or Shopify. Mention these other channels in your content and use a “link in bio” tool to direct users there.

Track Performance and Refine Your Strategy

Of course, analytics are key with any e-commerce platform. As Karl Pearson said, “That which is measured improves.” Especially if you’re new to TikTok, keep a close pulse on your analytics to track which products and types of content resonate with audiences there. Then, refine as you learn what works.

Our Sellers Signals dashboard helps you cut through the analytics noise, straight to the insights that help you grow your business. Try it free — no credit card required.

TikTok Shop FAQs

Still have questions about TikTok Shop? Here are the answers to a few frequently asked questions.

How Much Does It Cost to Sell in a TikTok Shop?

As with most marketplaces, sellers can expect to pay several types of fees to sell on TikTok Shop:

Marketplace Commission FeeRanges from 2.0 – 5.2% based on product category
Transaction Fee2.24%
Affiliate Commission FeeCan be a fixed dollar amount per sale or a percentage (often around 10 – 20%)
Withholding TaxSome sellers will have a 1% withholding tax imposed

In addition to these staples, there are a variety of other fees you might encounter as a TikTok seller, like shipping fees, penalties and compensation related to disputes, and adjustments for ads or platform commissions.

How Do I Get Approved for TikTok Shop?

When you complete your application, you’ll be asked for a few requirements.

For individual sellers:

  • Phone number and email
  • Driver’s license or passport
  • Last four digits of tax ID (SSN or TIN)
  • Merchant category code
  • W9/W8-BEN form/US TIN

For corporate sellers:

  • Phone number and email
  • Business name and address
  • EIN
  • Last four digits of tax ID
  • Legal name, date of birth, residential address
  • Merchant category code
  • W9/W8-BEN form/US TIN
  • Entity type

The main purpose of the application is to verify your identity as a US-based seller. The approval process for your TikTok account typically takes less than six days.

Will TikTok’s Legal Status Change in the US?

As a Chinese-owned company, TikTok has been in recent headlines facing a potential ban in the US by Congress. If this legislation moves forward, sellers could have the platform pulled out from under them.

Unfortunately, a ban would impact small- to medium-sized brands the most. We recommend that brands of all sizes remain poised to pivot in case TikTok doesn’t remain a viable option.

Consider strategies like:

  • Creating multi-purpose content that works for other platforms like Instagram and Snapchat
  • Work with influencers who have audiences on other platforms
  • Push audiences to your other storefronts
  • Deploy strategies to own your audience (e.g. campaign to join your email list)
  • Be prepared for a new platform to take TikTok’s place

Of course, maintaining your presence on other marketplaces remains crucial. As you adjust your TikTok strategy, make sure the journey from TikTok Shop to your other stores is as seamlessly as possible for customers.

TikTok Shop is an Opportunity Worth Pursuing

At the end of the day, TikTok is here — for now — as a profitable platform for brands serving under-35 audiences. With unique features like LIVE Shopping and shoppable videos, sellers can create immersive and engaging shopping experiences.

TikTok Shop’s fit for your business will depend on your audience, product offerings, and willingness to adapt to potential disruptions. While the platform currently boasts impressive sales numbers, brands should keep a diversified channel mix.

Ready to invest in your growth on TikTok and beyond? We’ll be here every step of the way with our full suite of financial solutions designed just for e-commerce.

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