Wondering how to sell on TikTok Shop? The social media platform has over a billion active users globally, making it useful for businesses looking to showcase their brand and market to a younger audience.
In fact, a New York Times study found that 40 per cent of consumers are using TikTok as a search engine – which goes up to 64 per cent when you only take into account Gen Z.
But as with all ecommerce platforms, there’s a few considerations. Some small businesses selling on the TikTok platform haven’t received payments, while consumers have complained about poor quality products.
Thinking of selling on the platform? Keep reading to learn how to set up a TikTok Shop – plus tips on how to promote your products.
What is TikTok Shop?
TikTok Shop advertises that you can ‘grow your business’ with a shopping experience driven by video content. Brands and influencers are encouraged to advertise their products through videos, live streams, and a product showcase as a way to boost sales.
You can register as a merchant for free and start marketing products to a captive audience. And TikTok says users are 1.5x more likely to immediately go out and buy something they discovered on the platform compared to other platforms’ users.
It’s worth noting that the TikTok shopping feature is different to just making money on TikTok, which is where influencers get paid for creating popular content through the app’s advertising model.
How TikTok shop has a competitive edge over its competitors
What makes TikTok Shop different from other selling platforms is how naturally users can discover new products. Unlike other platforms where users search for what they want, many buyers on TikTop Shop discover products through the algorithm or from their favourite creators.
Here’s just a few reasons why TikTok Shop has the competitive edge:
- personalised algorithm: TikTok’s For You Page understands each individual user, making it easier to target them with products they’ll love
- influencer marketing: people primarily use TikTok to follow their favourite creators, not to shop, but they’re likely to buy products promoted by the influencers they follow
- trending products: TikTok users are trend-savvy, always on the hunt for the next big thing
live shopping: sellers can host shopping livestreams to engage with their audience and build rapport
How much does selling on TikTok Shop UK cost?
TikTok is raising seller base commission fees to nine per cent in September 2024 as part of a commitment to building the “marketplace of the future”.
UK sellers can reduce these fees by completing “seller missions”, which involve creating a “target number of TikTok live or shoppable videos”. Sellers are even able to partner with TikTok creators to reach these targets.
TikTok also launched a new co-funded shipping model to help sellers benefit from free shipping. TikTok Shop orders will qualify for Co-Funded Free Shipping if they meet the following requirements:
- Fulfilled by TikTok (FBT): orders under £20 from any number of shops, so long as they’re all FBT
- Shipped by Seller: orders under £20 from a single shop, as long as the seller has a Shop Performance Score of above three and has an order delivery time of under three days
How to set up TikTok Shop
If you want to offer TikTok shopping, you’ll need to set up your shop through the TikTok Seller Center. To fully set up a TikTok Shop, you’ll need to:
- Create a shop by signing in with your TikTok account and providing a business address for your shop.
- Verify your identity by uploading a copy of your ID and wait to be approved (usually within one to two days).
- Link your bank account to your TikTok Shop in order to receive payments and process returns. Don’t have a business bank account yet? We list the best business bank accounts here.
You’ll then be able to start selling on the platform and can start thinking about how this ties in with your overall marketing strategy.
How to set up a successful TikTok Shop UK
There’s plenty of things you can do to make your TikTok Shop more successful. TikTok is a visual app, so optimising your product listings with high-quality videos and images is key. Show your products in action or ask for videos from your customers, let people get a real feel for how they’ll use your products.
Live shopping streams are another great way to entice customers. These allow for real-time product demonstrations, so you can answer specific questions from potential customers which may encourage them to buy.
Lastly, remember that TikTok is all about trends. The latest viral audios or meme formats can give you a boost in the algorithm and keep your shop visible.
TikTok Shop UK selling tools
Here are just a few of the tools that are useful for TikTok Shop sellers:
- live shopping: allows you to engage with customers in real time and develop a relationship
- in-feed shopping: directly link to your products when they feature in your TikTok videos (or videos made by other creators)
- paid ads: don’t want to fully rely on the algorithm? Get your content on more feeds with paid ads
- affiliate marketing: have influencers and content creators promote your products
- analytics dashboard: understand your shop’s performance and make smarter business decisions
How to use TikTok’s algorithm to benefit your shop
The key to promoting your shop on TikTok is to understand the algorithm. This means creating content that’s engaging, relevant, and enjoyable. To achieve this, you should focus on:
- high-quality content: take time creating your content and focus on lighting, sound, and editing
- paying attention to trends: think about what popular audios and hashtags are trending to improve your discoverability
- interacting with followers: this can encourage likes, comments, and shares – which in turn will boost your visibility
- posting consistently: create a posting schedule and stick with it to keep your audience engaged with your brand
Example: TikTok Shop UK success story
But is TikTok Shop worth it? One small business owner who found success on TikTok Shop is Mitchell Halliday, founder of cosmetics brand Made by Mitchell (MBM). MBM was founded in 2020 but didn’t start selling on TikTok Shop until 2022.
MBM’s TikTok Shop launch focused on collaborating with top creators whose viewers were the prime audience for the product, plus creating product bundles exclusive to the platform. The brand also hosted a series of livestreams to engage with their new audience.
In just three months, the brand saw a 106 per cent increase in campaign sales, as well as a x4 increase in brand following.
“Interacting in a live on TikTok Shop feels less like watching a sales pitch and more like chatting with a friend.”
Mitchell Halliday
Founder of Made by Mitchell
Is TikTok Shop legit?
We had a look at some online reviews to see what buyers and sellers are saying about TikTok Shop.
The picture on Trustpilot doesn’t look great for the app, with 91 per cent of reviewers giving a one star rating – many of whom are sellers on TikTok Shop. Many TikTok Shop reviews cite problems with items not turning up or the company not responding when an issue is reported.
The platform is trying to improve, though. TikTok has partnered with Shopify, one of the world’s most popular and trusted online shopping platforms – which could be a turning point for the platform’s reputation. This partnership allows Shopify sellers to connect their store to a TikTok store through a new specially designed app. This will give Shopify sellers the same marketing opportunities as TikTok sellers – such as selling through videos and live streams.
It’s also important to note that there are many genuine sellers and small businesses selling on TikTok. A NY Mag reporter even managed to sell a used pencil on the app – after their livestream advertising the product reached 1,200 viewers (on an account with only 34 followers).
Why is TikTok shopping so cheap?
One of the main reasons people wonder about the legitimacy of TikTok Shop is how cheap the items can be – and if you’re looking to sell on the app, you may be worried about the amount of competition from other sellers.
Many items for sale on TikTok Shop are so cheap because they’re sold via dropshipping – which is when the seller is never actually in possession of the item and instead orders them from a third-party supplier to be sent straight to the customer’s address.
If dropshipping is a part of your business model, TikTok Shop could be a way for you to reach more customers (especially if you take into account the video and livestream advertising opportunities).
However, if your business focuses more on handmade goods and you’d struggle to make a profit selling your products so cheaply, perhaps a platform like Etsy could work better for you.
Is TikTok Shop safe?
TikTok is not end-to-end encrypted, meaning messages and chats are read by the company – and could be read by third parties. This could leave you vulnerable to computer hackers and scams.
End-to-end encryption changes any data into scrambled text so it can only be read by you and the person receiving the message. Without this layer of security, it’s even more important not to share personal information on TikTok.
On top of this, there’s been warnings about TikTok’s data collection practices and how that information is shared.
If you want to learn more about keeping yourself and your business secure, read our guide to cyber security.
How did the TikTok ban impact the TikTok Shop?
When the US announced a TikTok ban, sellers around the world were worried about losing a major part of their customer base. And while the future of TikTok in the US is still uncertain, sellers worldwide are left wondering what it means for their business.
Even if only a small portion of your customer base is from the US, it’s still hard to deny the impact US TikTok users have on the rest of the world. There are over 170 million monthly active TikTok users in the US, which helps control what’s trending for the rest of us (Backlinko).
Losing this market could affect everything from the products you sell or the trends you use to promote them.
If you’re worried about the future of TikTok, check out some other online business ideas you could consider.
TikTok Shop UK vs competitor selling platforms
If you’re looking to make money by selling products online, there are plenty of other apps available with a better reputation for small businesses:
- sell second-hand and vintage fashion on Depop
- integrate your shop with Instagram
- sell your products on Facebook Shops
Our step-by-step guide has more information on how to set up an online shop.
You could also make money by exploring passive income streams or affiliate marketing.
Legal responsibilities if you sell on TikTok Shop UK
Whether or not selling on TikTok Shop is your full time job or a side hustle, you’ll need to make sure you’re aware of the tax and legal responsibilities of making money online. Our guide to paying tax when you have a side hustle is a good place to start.
Do you need business insurance if you sell on TikTok UK?
If you’re selling products to customers then it’s a good idea to protect yourself with business insurance. For example, if one of your products is damaged or faulty and causes injury to someone (or damages their property) then you could be liable. Product liability insurance is designed to support you and your business if something goes wrong.
TikTok Shop for small businesses: FAQs
How can I get my product to go viral on TikTok Shop?
There’s no science to going viral on TikTok – but there’s things you can do to increase your chances. Keep an eye on TikTok trends to help market existing products, as well as identifying market gaps when looking for new products to sell.
Are certain product categories better suited to sell on the TikTok Shop?
Some of the most popular items that sell on TikTok Shop are fashion and beauty products. This has a lot to do with TikTok’s user demographics as well some of its most popular creators: fashion influencers.
What are the biggest mistakes new sellers make on TikTok Shop?
Not optimising listings is one of the biggest mistakes new TikTok Shop sellers make. Using keywords, writing thorough descriptions, and using accurate imagery will help more people find your products.
What are TikTok’s future plans for integrating AI into TikTok Shop?
TikTok are rumoured to be releasing an in-app AI called Genie. In theory, Genie should be able to answer questions about your products in real-time, much like a chatbot can.
Useful small business guides
- How to make money on YouTube – a simple guide
- How to write a business plan – with free template
- How to write a marketing plan for your small business
- Is business insurance a legal requirement?
Need help protecting your online shop?
Whatever online platform you’re selling your products on, online retailer insurance can help keep you and your products protected – especially as your business may not be covered by your existing home insurance policy.