In recent months, buzz around TikTok’s new fulfillment rollout in the US has been making waves – both with users on the platform and for eCommerce businesses across the country. While there are pros and cons to this new platform for selling products, knowing how it can impact your business and bottom line is key before jumping right in. 

We’re sharing all you need to know about TikTok fulfillment and selling products on the platform. 

What is a TikTok Shop?

TikTok Shop is more than just a digital storefront; it's a dynamic space where merchants, brands, and creators converge to display and sell their products directly to TikTok's vast user base. This innovative feature seamlessly integrates e-commerce with the engaging medium of short-form videos.

How Does TikTok Shop Work?

TikTok Shop empowers sellers and creators to showcase and sell their products through various means:

• In-Feed Videos: Sellers can strategically incorporate their products into engaging in-feed videos, turning passive viewers into potential customers with just a few taps.
• LIVE Streams: Live shopping experiences are taken to the next level on TikTok. Creators can interact with their audience in real-time, answer questions, and feature products for instant purchase.
• Product Showcase Tab: This dedicated tab offers a curated selection of products, making it easier for users to explore and shop for items that catch their eye.

Who Can Utilize TikTok Shop?

TikTok Shop opens its doors to a diverse range of users, falling into four primary categories:

• Sellers: Businesses and individuals who want to showcase and sell their products on TikTok.
• Creators: Content creators who can seamlessly integrate products into their videos, enhancing their content and potentially generating revenue.
• Partners: Collaborators and partners with unique offerings or exclusive access to TikTok Shopping features.
• Affiliates: Individuals affiliated with businesses or brands, amplifying their marketing efforts through TikTok Shopping.

Geographical Considerations for Sellers

If you aspire to be a Seller on TikTok Shop, there are geographical criteria to meet:

• Location: You must be located in the US, UK, Chinese mainland, Hong Kong, or Indonesia.
• Verification: Proof of your location is essential and can be established through a local phone number, a certificate of incorporation for your business, and proper identification.

TikTok Shops represent a groundbreaking fusion of social media and e-commerce, offering boundless opportunities for businesses and creators to engage, captivate, and sell to a global audience. As this exciting feature continues to evolve, it's evident that TikTok is not just a platform for sharing content—it's also a vibrant marketplace where connections are made and products find their way into the hearts and homes of millions.

How does TikTok order fulfillment work?

For businesses looking to leverage the social media platform as a place to sell, it’s important to consider fulfillment logistics and how you plan to get products to customers. When it comes to fulfilling TikTok shop orders, there are a few options: 

Fulfillment By TikTok (FBT) 

Fulfillment by TikTok (FBT) is very similar to the familiar Fulfillment by Amazon structure that retail giant Amazon uses with many of its merchant sellers. In this model, merchants that sign up for FBT will send in a volume of their stock to be stored at a TikTok-run warehouse. Merchants aren’t required to store all of their SKUs at the warehouse or use FBT for all of their products; they can select which items they want to store and ship through FBT. 

Instead of the business having to handle shipping logistics, FBT handles this for them while taking fees that account for the services they provide. 

Third-Party Fulfillment

In this model, businesses work with a third-party fulfillment partner like ShipDaddy who handles some of or all of the logistics required to get products shipped to customers. This allows retailers to not have to handle inventory in-house and puts the packing, processing, and shipping services on a specialized partner. 

Fulfillment by Merchant 

In this basic structure, businesses essentially handle all fulfillment services in-house. For small businesses first starting out or businesses that are in the process of scaling but aren't ready to partner with an outside supporter, this model works well. Remember, businesses handling logistics in-house may need full time employees to handle the various steps in the fulfillment process. 

What does this mean for eCommerce businesses? 

In the dynamic world of e-commerce, TikTok is emerging as a powerhouse for businesses and creators to connect with a global audience. As we navigate the exciting realm of TikTok Shopping, it becomes clear that fulfillment options play a pivotal role in the success of these ventures. 

Whether you opt for a self-fulfillment strategy, partner with a third-party logistics provider, or leverage TikTok's fulfillment services, the key is to align your choice with your goals and scale. With the right fulfillment approach, your TikTok venture can flourish, reaching new heights and captivating the ever-evolving world of online shoppers. So, take the leap into the TikTok Shopping universe and embark on an exciting journey of growth and success.

A partner you can trust

If you’re ready to explore the world of TikTok Shop with a fulfillment partner you can trust, ShipDaddy has the expertise and resources you need to scale your business and keep your customers coming back for you. Learn more about how we can work with your business today. 

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