TikTok Shop: 6 Takeaways for Brands Working with Influencers
Not sure what to make of TikTok Shop? We dig into TikTok’s latest shopping features and what brands working with influencers need to know about them.
Trying to figure out how to sell on TikTok Shop? Here are five opportunities to optimize your storefront and examples of the best TikTok Shops we've seen.
If your brand hesitated to start selling on TikTok Shop at its launch, you’re not alone.
But all signs point that Shop is here to stay in a big way (and no, it's not too late to start).
Here’s a quick snapshot that highlights the boom in CPG brands selling on TikTok Shop:
While selling on TikTok Shop is 100% happening, sales aren’t guaranteed and competition is fierce.
Below we dig into how to get sales on TikTok Shop and set themselves up for more sales.
Skip to Section👇How to Set Up TikTok Shop (If You Haven't Already) How to Get Sales on TikTok Shop 1. Prioritize the Right Products 2. Be Strategic About Deals and Discounts |
Is your brand already selling on TikTok Shop? Skip this section to get to the good stuff!
Below is a quick breakdown of the big-picture steps of setting up your TikTok Shop.
For a more in-depth explanation, check out our recent webinars (“Should Your Brand Be on TikTok Shop?” and “How Brands Are Driving Sales on TikTok”).
We've seen firsthand how CPG brands are scoring sales through shoppable videos on TikTok.
But trust us: they're not doing it all by accident!
Below are five tips and best practices for selling on TikTok Shop based on recent trends, the best Shops we've seen and the app's own recommendations.
The best-selling items on TikTok Shop don't fall under a one-size-fits-all category.
And honestly, sometimes it's not the same products that you might expect.
Here are some of the common threads between many (but not all!) of the products that perform well on TikTok Shop for CPG brands:
The larger your products get in terms of price point and size, the more legwork required to drive purchases. That said, it's not just beauty brands and makeup products that sell on TikTok.
A brand like LEVOIT is a really good example of a TikTok Shop selling a variety of products at different sizes and price points. It's no coincidence that their smaller items which have been featured in multiple viral videos are the best-sellers. However, the sales of their bigger items in terms of size and price tag are nothing to scoff at.
If you're not sure what to sell on TikTok Shop, start by looking at your current best-sellers that tick the boxes above. Although TikTok recommends that sellers embrace variety, make sure that the margins make sense for whatever you decide to list in your Shop. Choosing a product that's easy to film in terms of how it works is always a plus for creators.
As of writing this post, TikTok still offers some pretty steep discounts for first-time buyers and waiving various fees for Shop sellers.
The idea here is to drive as many sales to TikTok Shop as possible to hook audiences and get them invested in the platform before removing them. We've seen this strategy play out with the likes of Netflix and Uber raising prices so it's not a huge surprise.
However, these offers won't be around forever and the days of dirt-cheap products will come to a halt for buyers. Seller fees already hiked from 2% to 6% and will reach 8% in July 2024.
This highlights the importance of being strategic about your deals and discounts when you sell on TikTok Shop. Customer expectations on Shop are similar to that of Amazon as buyers expect the best deals possible.
Your pricing on TikTok Shop may mirror your pricing strategy on Amazon for this reason. Just be mindful that you aren't taking a total loss.
In terms of affiliate payouts, TikTok recommends starting with 10% and gradually reducing to somewhere between 5% and 1% depending on your goals. If you expect creators to consistently promote your products, you're going to need a value exchange to match.
The takeaway here is that knowing how to sell on TikTok Shop doesn't mean much if simply having a Shop is putting you in the red. Pay attention to the fine print and price your products accordingly.
Creators are the cornerstone of TikTok Shop and what makes it so effective and potentially powerful for CPG brands. Since shoppable posts can rank in social search and trend in the #FYP, the value of having consistent creator content feed the TikTok algorithm is massive.
The more creators you collab with, the more potential reach you can earn. This speaks to the importance of a high volume of partnerships with TikTok micro-influencers.
TikTok makes it relatively easy for brands to build their army of influencers whether you have an existing creator roster or not based on your choice of affiliate plan.
Keep in mind that you can mix and match between Target and Open affiliates. Either option has its benefits so which one you choose really depends on your bandwidth and whether you can support influencer collabs at scale!
Chances are you already collaborate with influencers on TikTok that meet the criteria for Shop. These creators are perfect candidates to promote your products and boost your storefront's visibility. The trick is finding these creators without digging through profiles or conducting outreach.
This is where Statusphere's platform can be a huge help. We've recently rolled out the ability for brands to enable TikTok Shop tagging within their campaigns. That means you can instantly activate creators posting your TikTok Shop product links without sending a single DM.
The result? More eyes on your storefront and more potential affiliate revenue for your TikTok Shop creators (all with no manual legwork on your part). It's a win-win!
Remember: influencer ads outperform non-creator ads by default on TikTok.
Thankfully, there are multiple types of TikTok Ads (like Spark Ads!) and Video Shopping Ads which can feature both creators and link back to your Shop listings.
The potential reach and engagement rate on TikTok Shop ads is staggering, by the way.
A recent case study for Love and Pebble illustrates how. The brand saw massive results by sparking influencer content for a promotional campaign featuring TikTok Shop products. The results:
The takeaway? If you’re trying to figure out how to sell on TikTok Shop, Spark Ads are a smart starting point in terms of where to put your ad budget.
And if you're already collaborating with creators, this is a low-hanging opportunity to drive sales on TikTok with content you already have the rights to.
We've been getting a lot of questions about TikTok Shop SEO lately and we totally understand why.
With the rise of TikTok SEO, it makes sense to want to optimize your store for social search as well.
The thing is, there are a few caveats to just how much you can optimize your TikTok Shop for search:
To wrap things up, TikTok also has its own set of recommendations for increasing visibility on Shop:
The app isn't shy about telling us that selling on TikTok Shop is a numbers game. More positive word-of-mouth, reviews and social proof are always a plus for the sake of building trust. This highlights why brands such as Blue Bottle Coffee perform so well on TikTok Shop with a high volume of creators shouting them out.
Again, creators are going to earn you more reach and opportunities to get seen by your target audience on TikTok Shop than keyword stuffing your product descriptions or any other "hack."
We'll say it again: TikTok Shop is here to stay.
And the sooner you figure out how to sell on TikTok Shop based on its best practices, the better.
The rise of TikTok shopping really reinforces the importance of having an established influencer marketing strategy. The more brand advocates you have creating UGC, the better.
If you need a high volume of TikTok influencers creating UGC featuring your TikTok Shop products, Statusphere’s software can help. Our micro-influencer platform matches brands with creators from our vetted influencer network using 250+ unique, first-party data points.
Unlike other platforms, Statusphere provides brands with guaranteed posts from relevant influencers to support scalability. We also offer tools like Instant Spark Ads to help brands sell and advertise on TikTok Shop faster.
We’ve already generated 75,000+ pieces of authentic content for 400+ CPG brands like yours.
Want to see how our software works? Get in touch with one of our experts to see how we can grow your influencer presence on TikTok with guaranteed content at scale.
This article was first published in April 2024. It was last updated July 31, 2024.
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