{"id":28474,"date":"2024-05-20T08:14:43","date_gmt":"2024-05-20T16:14:43","guid":{"rendered":"https:\/\/www.intentwise.com\/blog\/?p=28474"},"modified":"2026-06-08T03:46:51","modified_gmt":"2026-06-08T11:46:51","slug":"explained-what-is-tiktok-shop","status":"publish","type":"post","link":"https:\/\/www.intentwise.com\/blog\/retail-media\/explained-what-is-tiktok-shop\/","title":{"rendered":"Explained: What is TikTok Shop?","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>What is TikTok Shop?<\/strong> Last fall, TikTok officially launched the U.S. version of TikTok Shop, the platform\u2019s in-app shopping system. Big brands like <a href=\"https:\/\/www.glossy.co\/beauty\/estee-lauder-and-the-ordinary-share-strategies-for-tiktok-shop\/\">Est\u00e9e Lauder<\/a> have rushed to embrace it, and TikTok claims that 500k+ merchants are <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-04-30\/tiktok-shop-tops-500-000-us-sellers-after-2023-e-commerce-launch\">now selling<\/a> on TikTok Shop.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But for many brands and agencies, it\u2019s hard to get a read on whether selling on TikTok is really worth it\u2014not least because TikTok\u2019s future in the U.S. is <a href=\"https:\/\/apnews.com\/article\/tiktok-divestment-ban-what-you-need-to-know-5e1ff786e89da10a1b799241ae025406\">uncertain<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In many ways, it\u2019s probably too soon to say exactly how important TikTok Shop will be for your business. It depends a lot on your category and your sales goals. Plus, we\u2019re still waiting for good data on conversion rates on TikTok Shop.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Until then, you\u2019re probably going to hear a lot about TikTok Shop. Here\u2019s a breakdown of what to know so far.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-what-are-the-benefits-of-tiktok-shop-nbsp\" class=\"wp-block-heading\"><strong>What are the benefits of TikTok Shop?&nbsp;<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Since the fall, shopping has become fully integrated into TikTok. \u201cShop\u201d is now its own tab at the top of the app. Marketers can also create Shop Ads that refer viewers directly to your product listing on TikTok.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">TikTok Shop also offers its own checkout system, so shoppers can browse and purchase without leaving the app.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But one big benefit of TikTok Shop is its <strong>extensive in-app affiliate program<\/strong>. This means that, when you list your product on TikTok, third-party creators can then promote it, and get a cut of sales. You don\u2019t even have to pre-arrange the video with them. Creators can just promote any product they see listed on TikTok Shop.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In other words, the potential of TikTok is not so much about selling to your pre-existing audience. It\u2019s about TikTok creators recommending your product to their followers in exchange for a cut.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Given the popularity of shopping hashtags like #TikTokMadeMeBuyIt, this could theoretically drive <em>a lot<\/em> of sales. Tons of people start their shopping journey on TikTok. Now, you can be there when they do.<\/p>\n\n\n\n<h3 id=\"h-how-big-is-tiktok-shop-nbsp\" class=\"wp-block-heading\"><strong>How big is TikTok Shop?&nbsp;<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Right now, TikTok Shop has 500k+ merchants. These merchants are all hoping to get access to TikTok\u2019s massive user base, which encompasses 170 million users in the U.S.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many TikTok Shop vendors sell in the specific categories that already perform well on TikTok. Think beauty, apparel, and food\u2014the kinds of products that lend themselves well to short narrative video demos.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We don\u2019t have good data yet on how TikTok Shop sales compare to, say, sales on Walmart or Amazon. But TikTok is far and away the biggest <em>social<\/em> commerce platform already.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One recent study found that <a href=\"https:\/\/www.emarketer.com\/content\/5-key-stats-on-tiktok-shop-gen-z-off-price-shopping-fast-fashion\">68.1%<\/a> of social commerce sales happened on TikTok\u2014far more than Instagram Checkout, Facebook Shop, and other rival platforms. Again, that\u2019s social commerce only. It doesn\u2019t include traditional platforms like Amazon, Walmart, Shopify, and so on.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And who is buying all of those products? Unsurprisingly, customers of TikTok Shop are disproportionately young. 18-to-24-year-olds <a href=\"https:\/\/www.emarketer.com\/content\/5-key-stats-on-tiktok-shop-gen-z-off-price-shopping-fast-fashion\">make<\/a> purchases <strong>3.2x more<\/strong> than the adult population average.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-how-much-does-tiktok-shop-cost-nbsp\" class=\"wp-block-heading\"><strong>How much does TikTok Shop cost?&nbsp;<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For now, TikTok takes a relatively small slice of commissions. Right now, sellers <a href=\"https:\/\/seller-us.tiktok.com\/university\/essay?identity=1&amp;role=1&amp;knowledge_id=5982454398175018&amp;from=feature_guide\">pay 6%<\/a> for every sale\u2014though TikTok is increasing its cut to 8% by July 2024.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You also don\u2019t have to manage all your listings from scratch on TikTok Shop. Shopify and BigCommerce let you <a href=\"https:\/\/www.shopify.com\/sell-on-tiktok\">sync<\/a> your inventory directly with TikTok Shop, allowing you to manage your listings, inventory, pricing, and more directly from your chosen DTC platform.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That said, the integration is <a href=\"https:\/\/www.modernretail.co\/technology\/buckle-up-for-the-first-thirty-days-on-tiktok-shop-brands-continue-to-deal-with-a-buggy-and-opaque-platform\/\">reported<\/a> to be glitchy, according to Modern Retail. Issues are common, and it often takes a lot of manual intervention.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-how-do-you-ship-from-tiktok-shop-nbsp\" class=\"wp-block-heading\"><strong>How do you ship from TikTok Shop?&nbsp;<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">When you join TikTok Shop, you choose your preferred shipping option. You can go with either TikTok Shipping and Seller Shipping.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>TikTok Shipping<\/strong>. TikTok Shipping is the default option when you start selling on the app. It allows sellers to use TikTok\u2019s <a href=\"https:\/\/seller-us.tiktok.com\/university\/essay?knowledge_id=8644984183162670&amp;default_language=en&amp;identity=1\">own network of shipping partners<\/a>. TikTok Shipping products get a \u201cShipped by TikTok\u201d badge, and TikTok guarantees three-day delivery for eligible products. The platform has a \u201c3-Day Delivery\u201d badge that it shows to shoppers.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Seller Shipping<\/strong>. If you don\u2019t want to use TikTok\u2019s logistics system, you can opt to use your own logistics network, called Seller Shipping. You don\u2019t get any badges this way, but you have other benefits.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One key point: Amazon Logistics is one of the supported shipping partners for Seller Shipping. So, through Seller Shipping, you can have Amazon <a href=\"https:\/\/seller-us.tiktok.com\/university\/essay?knowledge_id=8308896260065025&amp;default_language=en&amp;identity=1\">fulfill<\/a> your TikTok orders. That\u2019s a big deal for brands that already sell on Amazon and that don\u2019t want to create a fulfillment plan from scratch for TikTok.&nbsp;<\/p>\n\n\n\n<h3 id=\"h-what-else-is-there-to-know-about-tiktok-shop-nbsp\" class=\"wp-block-heading\"><strong>What else is there to know about TikTok Shop?&nbsp;<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s a lot more to cover when it comes to TikTok Shop, but for now, a few important points to keep in mind:&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The 30-day trial period<\/strong>. Don\u2019t expect to go viral right away. For the first month, new sellers on TikTok Shop can\u2019t make more than 200 sales per day. That is to limit bad actors on the platform.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Watch your inventory levels<\/strong>. The beauty of TikTok is its viral potential. If a creator makes a video featuring your product and it blows up, you might see exponential sales in the coming weeks.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But TikTok\u2019s unique ability to catapult a product from obscurity into virality can present all new challenges around inventory levels. Your sales numbers might shoot up one week and plummet the next.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That makes <a href=\"https:\/\/www.intentwise.com\/blog\/amazon-advertising\/how-to-pause-ad-spend-when-your-inventory-is-low\/\">smart inventory management<\/a> all the more essential. Be sure you are keeping a close eye on inventory data so you don\u2019t get caught flat footed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Pay attention to external links<\/strong>. If you want to promote your brand on TikTok but <em>don\u2019t<\/em> want to list your products on TikTok Shop, don\u2019t worry. For now, you can still get away with promoting your brand on TikTok and directing your shoppers externally. But keep in mind that could change soon. TikTok has been <a href=\"https:\/\/techcrunch.com\/2023\/08\/23\/tiktok-plans-ban-links-outside-e-commerce-sites-like-amazon-new-report-claims\/\">planning<\/a> to ban links to outside e-commerce sites, like Amazon.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If external links disappear, it might tip the scale in favor of wanting to at least list your products on the app, so that they\u2019re immediately available for purchases should you have a viral moment.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>So should you use TikTok Shop? <\/strong>It really depends. Right now, TikTok Shop probably makes the most sense for beauty and food and apparel brands that already dominate the platform. In those categories, TikTok is a core part of the discovery process. So you\u2019ll probably want to look into adding your listings to TikTok, too.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But if you sell, say, car parts, TikTok Shop may not be worth your time at this point.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What is the best data pipeline for TikTok?&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Brands and agencies that want to automate their TikTok Ads and TikTok Shop data often rely on Intentwise.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Intentwise builds effortless pipeline between TikTok and your existing reporting system. With <a href=\"https:\/\/intentwise.com\/lp\/mkt\/tiktok-measurement-wait-list\">Intentwise\u2019s TikTok pipelines<\/a>, brands can also compare their TikTok performance to Amazon, Walmart, Shopify, and more.<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"<p>What is TikTok Shop? Last fall, TikTok officially launched the U.S. version of TikTok Shop, the platform\u2019s in-app shopping system. Big brands like Est\u00e9e Lauder have rushed to embrace it, and TikTok claims that 500k+ merchants are now selling on TikTok Shop.&nbsp; But for many brands and agencies, it\u2019s hard to get a read on [&hellip;]<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":22,"featured_media":28476,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[82],"tags":[96,155,216],"class_list":["post-28474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retail-media","tag-mobile","tag-newsletter","tag-tiktok"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Explained: What is TikTok Shop?<\/title>\n<meta name=\"description\" content=\"TikTok Shop is rapidly growing in popularity. 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