How does TikTok Shop work?

    ·July 9, 2024
    ·5 min read

    TikTok Shop is an e-commerce platform within the TikTok app that allows users to discover and purchase products directly from videos, live streams, and profiles. Here’s how it works:

    1. For Sellers:

    - Register:

    Sellers must register for a TikTok Shop account and set up their online store within the app.

    - Product Listing:

    Sellers can list products, including descriptions, prices, and images or videos.

    - Content Creation:

    Sellers create engaging videos and live streams to showcase products, and can tag products in their videos, making it easy for viewers to view and purchase items.

    - Promote:

    Sellers can promote products using TikTok’s advertising tools.

    2. For Influencers:

    - Partnerships:

    Influencers can work with brands to promote products, and tag products in their videos, making it easy for fans to buy.

    - Affiliate Program:

    Influencers can earn commissions by promoting products in their profiles and content through the affiliate program.

    3. For Consumers:

    - Discover:

    Users can discover products through the For You page, by watching videos, or by browsing the TikTok Shop section.

    - Purchase:

    Users can tap on tagged products to see more details and purchase directly within the app.

    - Payment and delivery:

    TikTok Shop supports a variety of payment methods and provides a seamless checkout experience.

    4. Features:

    - Shoppable videos:

    Videos and live broadcasts are shoppable, and users can buy products directly from the content.

    - Product recommendations:

    TikTok's algorithm recommends products based on user preferences and browsing history.

    - Customer reviews:

    Users can leave reviews and ratings for products.

    5. Integration with TikTok features:

    - Challenges and tags:

    You can promote products through challenges and tags to increase their visibility.

    - Branded effects and filters:

    Sellers can create branded effects and filters to make products stand out in videos.

    TikTok Shop leverages the app's massive user base and engaging content format to create a seamless and interactive shopping experience, blurring the line between social media and e-commerce.

    TikTok Shop (also known as TikTok e-commerce) is an innovative e-commerce platform launched by ByteDance for merchants on TikTok, the international version of Douyin. It mainly revolves around two major models: content e-commerce and shelf e-commerce, providing one-stop e-commerce solutions for merchants, influencers and buyers. The following is the specific working mechanism of TikTok Shop:

    1. Content e-commerce model

    - Live broadcast and short video:

    Live broadcast and short video are comprehensive operating scenarios for TikTok Shop to achieve multiple business goals. Live broadcast can intensively convey product selling points and interact with the audience in real time, thereby achieving high transaction volume in a short time.

    Short videos focus on relatively vertical and single content, reach users in batches, conduct daily product seeding, and continuously expand the influence of products.

    - Personalized recommendation:

    TikTok uses its powerful algorithm logic to push personalized content (including live broadcast and short video) to each user based on the user's interests and behavior data, greatly improving the exposure and purchase conversion rate of products.

    2. Shelf e-commerce model

    - Mall entrance:

    TikTok Shop mall is officially launched in Thailand, the Philippines, Malaysia, Vietnam and other markets. The entrance to the mall is located on the right side of the TikTok homepage.

    It focuses on the classification and centralized presentation of products, and uses multiple touchpoints to help users achieve active shopping behavior.

    - User experience optimization:

    Merchants need to improve the richness and price competitiveness of products in the TikTok Shop mall, continuously optimize product main pictures, titles and other information, and improve user experience.

    3. One-stop solution

    - Official operation support:

    TikTok Shop provides merchants with an official operation support system, including incubation classes, official cross-border circle communities, high-potential training classes, and industry manager guidance.

    - Global content service ecosystem:

    TikTok Shop has built a global content service ecosystem, including talent alliances, cross-border institutions/talents, overseas institutions/talents, etc.

    - Convenient logistics and settlement:

    TikTok Shop provides a variety of logistics solutions, including platform parcels + overseas warehouses, domestic direct mail official logistics, and overseas warehouse merchants self-delivery.

    At the same time, it supports the COD (cash on delivery) function, which is convenient for buyers to pay the purchase price in cash on the spot when signing for the package.

    4. Cross-border e-commerce opportunities

    As a global platform, TikTok provides unprecedented opportunities for cross-border e-commerce. Merchants can sell their products around the world through TikTok, expand international markets, and achieve a wider business layout.

    In summary, TikTok Shop provides merchants, influencers, and buyers with efficient and convenient e-commerce services through the diversified business methods of content e-commerce and shelf e-commerce, combined with personalized algorithm recommendations and one-stop solutions.

    With the continuous development and expansion of TikTok around the world, TikTok Shop is expected to become an important force in the future e-commerce field.

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