What is a TikTok Shop?

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“TikTok Shop is the one stop e-commerce solution for driving brand growth and sales, where entertainment becomes shoppable.”

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TikTok has a unique search engine, where consumers look at short video clips. Now brands and sellers can showcase their products utilizing this entertainment function. 

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70% of users discover new brands and products using TikTok.

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Prior to TikTok shop, buyers would have to leave the app in order to make a purchase, now the app provides consumers with in-app purchases. A literal one stop shop.

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TikTok shop works enables individuals/businesses to manage their sales, inventories, and promotions all within the app.

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Benefits of Using TikTok Shop

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It is FREE. Register at no cost and start listing products. TikTok will take a small commission when you start making sales. A win win. 

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TikTok is the place to expose your brand or product. By being on TikTok your brand/product will be exposed to over a billion potential customers. Consumers are already engaged and spending money on the app, in 2022 over $3 Billion Dollars in sales occurred through in app purchases. 

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Other platforms such as Amazon and WooCommerce can be integrated with TikTok shop. 

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Setting Up TikTok Shop

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Only 4 easy steps to setting up your TikTok Shop.

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1. Sign Up for a TikTok Shop profile - this differs from a regular account, but you can sign up using a TikTok account if you have one or a phone number/email. 
2. Complete your application - provide the necessary documents to verify your identity or your business. 
3. Wait for approval - this process can take up to six days
4. Set up your store and link your TikTok account. 

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Start adding products. You can also link an already existing store to the app to boost your ecommerce growth. 

TikTok can also be your sole online store and you can add products directly to the app and manage everything there.

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Business Account vs. Individual

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You can sell on TikTok shops as an individual or business. Here is the difference in paperwork that you will need to submit in order to get approved. 

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For individual applicants, the applicant must provide the following information and documents for verification purposes:

• Legal Name (including your first name and last name, with middle name optional)
• Date of birth
• Residential Address
• A photocopy of a valid U.S. government-issued ID from the following list:
  • U.S. Passport 
  • U.S. Driver's License 
• ID Expiration Date
• The last 4 Digits of your Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)

For business applicants, the applicant must provide company registration information, including but not limited to:

• Business Type
• Company Name
• Employer Identification Number (EIN)
• Registered business address
• Business address (if different from registered business address)
• Beneficial owners of the company being registered may need to provide:
  • Legal Name
  • Date of birth
  • Residential address
  • Percentage of ownership (only if "beneficial owner" is chosen)
  • The Last 4 digits of SSN or ITIN (except for public companies)

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*Keep in mind only business accounts on TikTok can participate in paid advertising campaigns and promote their content strategically, something to consider before deciding‍

Switching to a Business Account

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1. In the TikTok app, tap Profile at the bottom.

2. Tap the Menu ☰ button at the top, then select Settings and privacy.

3. Tap Account.

4. Tap Switch to Business Account, then follow the instructions provided to switch your account type.

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Finding Your Niche

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To be profitable on TikTok shop you need to find in demand products to sell that also have low competition. 

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You will have to do some research to find the best trends and niches to target.  

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There are software programs such as FastMoss that you can use to find trending products and top selling TikTok shops. 

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Some popular niches on TikTok right now are beauty products, clothing, household items, and pet products.

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Finding Suppliers

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There are many different ways to locate suppliers for your TikTok shop. You have the option to find local suppliers or overseas suppliers, each having their benefits and drawbacks. You will also have to decide on dropshipping your products or holding your own inventory.

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Local suppliers will allow you to have:

Faster Shipping

Easier Communication

Lower Shipping Costs

But also consider:

Higher Costs

Limited Variety

Supply Constraints

Overseas suppliers will allow you to have:

Lower Costs

Wider Variety

Scalability

But also consider:

Longer Shipping Times

Communication Barriers

Quality Control Issues

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It is important for you to weigh the pros and cons to both categories of suppliers and find the right fit for your business. 

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Dropshipping vs. Holding Inventory 

Both have their own benefits and negatives. Dropshipping allows for scalability of your business, but comes with risks of lengthy shipping times and quality control. Holding your own inventory might increase your profit initially, but you risk a reduced capacity and inability to scale. 

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Some potential sources to find your products are Alibaba, Aliexpress, and Temu.

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Content Creation and Marketing Strategy

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Know Your Audience: understand the people you are targeting (age, interests, etc) and engage with your followers.

Use Trends and Challenges: stay up to date on the latest trend and use it to craft engaging videos.

Showcase Your Products Creatively: create product demos showcasing your products, share unboxing videos and tutorials, utilize UGC (user generated content).

Keep it Short: TikTok videos are short, keep yours short and sweet to maximize the engagement of your audience.

High Quality Visuals are Key: using high quality imaging and videos to showcase your product proves to consumers it is worth it. 

Add Captions and Hashtags: the best way to gain visibility is through SEO optimization.

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Use TikTok Specific Shopping Features

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Make sure to showcase your product(s) effectively through using TikTok specific tools. 

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Product Links in Videos: allow easy access to purchasing your product.

Livestream Shopping: engage your followers and communicate with them in real time.

TikTok Ads: a great way to get your product viewed and engage potential customers.

Collaborate with Influencers: create partnerships with TikTok influencers and have them find your customers for you.

Affiliate Outreach: another tool offered by TikTok shop to gain access to affiliates to help market your product.

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Selling on TikTok is shaping the future of e-commerce because it seamlessly combines fun and shopping, reaching a huge and highly engaged audience. The platform’s short, captivating videos and trending content give businesses a unique way to showcase their products creatively. TikTok’s smart algorithm ensures that your content finds the right people, boosting the chances of making sales. Plus, features like live streaming and direct messaging create a sense of community and trust between brands and customers. As more people turn to digital shopping, TikTok’s fresh and interactive approach makes it an essential tool for businesses aiming to succeed in today’s market.

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