Have you heard of people making thousands of dollars a month through TikTok Shop but don't know where to start?
Or maybe you already understand TikTok's potential but are still unsure about how to make money from it?
Don't worry! This article will guide you step-by-step to understand what TikTok Shop is, how it works, and how you can start your eCommerce journey using it.
Before we begin, you might be wondering: "What exactly is TikTok Shop? How is it different from other eCommerce platforms?"
Don't worry, we'll answer that for you right now!
What Is TikTok Shop and How Does It Work?
TikTok Shop is an eCommerce feature launched by TikTok.
In simple terms, it allows sellers to showcase and sell their products directly on the TikTok platform, without needing to go to another website. Users can easily click on product links while watching videos or live streams and complete their purchase—convenient and fast.
This "shop while you watch" model captures users' attention and increases the likelihood of impulse buying.
Its core advantage is content-driven sales.
With short videos and live streams, you're not just selling a product; you're telling a story and building an emotional connection between your brand and followers. Plus, TikTok's smart algorithm recommends your content based on user interests, helping you reach more potential buyers.
Whether you're an individual entrepreneur or a brand, as long as you're creative and know how to make engaging content, TikTok Shop offers an opportunity for you.
Next, we'll explore the pros and cons of TikTok Shop and how you can use it to achieve your profit goals.
The Pros and Cons of Selling on TikTok Shop
It sounds like TikTok Shop could be a great opportunity, right?
But you might be wondering, "Is this really the right fit for me?" You're right to ask that.
Before jumping in, it's important to understand both the pros and cons of TikTok Shop so you can make an informed decision.
TikTok Shop Benefits: Why Choose It?
1. Huge Traffic, Endless Exposure
TikTok is one of the fastest-growing social platforms globally, with over 1 billion active users each month.
Imagine having access to such a large potential customer base. Plus, TikTok's powerful algorithm ensures that if your content is engaging, it can easily go viral, giving your product more visibility.
2.Content-Driven, Build Brand Influence
TikTok Shop isn't just about setting up a store and waiting for customers to come.
It’s about telling stories through short videos and live streams, making your products fun and engaging. This not only boosts sales but helps you build a loyal following and long-term brand value.
3.One-Stop Shopping Experience
From discovering a product to clicking "buy" and completing the payment, the entire process happens on TikTok.
This creates a seamless experience for buyers and saves time and effort for sellers—perfect for those new to eCommerce.
4.Multiple Ways to Make Money
In addition to selling products directly, you can partner with influencers, host live shopping events, or even become a TikTok affiliate to earn commissions.
There are many ways to monetize, providing endless opportunities.
TikTok Shop Challenges: What You Need to Know
1.High Competition, Content is Key
TikTok's rapid growth also means more businesses are joining the platform.
Your products need to stand out, and you must consistently create high-quality content to get noticed. If content creation isn't your strength, this could be a challenge.
2.Logistics and Customer Service
TikTok Shop has certain logistics and customer service requirements, such as order processing times and return policies. If you're selling internationally, these issues are even more important as they can directly impact your store ratings and customer satisfaction.
3.Constantly Changing Policies and Rules
TikTok Shop is still evolving, which means the platform's rules and policies may change at any time. As a seller, you'll need to stay updated and be ready to adapt.
4.Uncertain Return on Investment
Even though TikTok Shop has a relatively low entry barrier, you'll likely need to invest money and effort at the start, such as for ads and content creation.
Whether these investments will pay off depends on your strategy and patience.
Now that we've looked at both the pros and cons, it's clear that TikTok Shop offers huge potential. But success isn't just about having great products—it also requires a willingness to learn and adapt to this fast-paced environment. If you're ready for that, congratulations! You're already ahead of many others.
We've covered the basics of how TikTok Shop works and its pros and cons, the next key question is: how is it developing right now? How many opportunities are still waiting for us to explore? Understanding the current state of TikTok Shop can help you decide whether it's worth investing in and help you find the best strategy to enter the market.
The Current Landscape of TikTok Shop in 2024
TikTok Shop has experienced explosive growth in the past few years.
It initially launched in Southeast Asia, in countries like Indonesia, Thailand, and the Philippines, where it quickly gained popularity thanks to a huge young user base and a short-video-driven shopping model.
Soon after, TikTok Shop expanded into Western markets, such as the UK and the US. And in 2023, it made a strong entry into regions like the Middle East and Latin America. 2023 was truly a year of rapid change for the TikTok Shop ecosystem.
By 2024, TikTok Shop continues to focus on expanding globally.
In addition to solidifying key markets like the US and Vietnam, TikTok is actively researching and preparing to enter more potential markets to further expand its global eCommerce presence.
User Behavior and Buying Habits
TikTok users' buying behaviors are characterized by impulsiveness and social influence.
Data shows that over 60% of users make purchases directly from videos or live streams they find interesting, and they are more likely to trust product recommendations from influencers or creators. This "content-as-advertisement" model results in significantly higher conversion rates for TikTok Shop compared to traditional eCommerce platforms.
Moreover, TikTok’s user base is generally young, with 18-34-year-olds being the main consumer group. This means they care not only about price but also about product creativity and experience.
If your brand and content align with this mindset, TikTok Shop offers massive growth opportunities.
Industry Competition and Development Trends
1.Main Product Categories
In 2023, women’s apparel, lingerie, and beauty products were the top-selling categories on TikTok Shop.
Research shows that 19% of sellers focused on women’s clothing and lingerie, 18% focused on beauty and personal care, and 15% focused on sports and outdoor products. Mobile electronics, pet supplies, and baby products made up 11%, 8%, and 6% of sales, respectively.
By 2024, TikTok Shop's popular categories are still dominated by female consumer goods, with skincare and beauty items maintaining their leading positions.
Next, women’s fashion and health products are also highly popular, particularly in Southeast Asia. Low-priced products (under $5) tend to sell best, but in some markets like Singapore, higher-priced items also perform well.
In the US market, skincare and beauty products are the dominant categories, priced between $10-$30.
Throughout 2024, there has been a trend toward category diversification.
2.Seller Status
In 2023, half of the sellers were in a low-cost trial phase.
Research shows that 49% of sellers were testing with minimal investment, adjusting based on market feedback. 24% of sellers felt that investing some capital could help with early overseas market positioning. 16% were optimistic about TikTok’s global eCommerce market and were making large investments, while 11% of cross-border sellers were still taking a wait-and-see approach.
By 2024, more sellers are emerging from the trial phase.
More and more businesses are entering the TikTok Shop ecosystem, using short videos, live streaming, and other methods to drive sales. Content-driven eCommerce remains central, with live-streaming eCommerce having formed a mature model, especially in Southeast Asia.
Around 30% of sellers say they've found their own operational model and are increasing their investments with steady revenue growth.
However, a significant portion of sellers (around 40%) is still optimizing their strategies, transitioning from trial-and-error to a more stable development phase.
3.Revenue Growth
Research shows that from January to November 2023, 71% of sellers reported increased revenue compared to the same period in 2022, while 15% saw no change, and only 14% experienced a decline in revenue.
By 2024, around 70% of sellers reported year-over-year revenue growth.
Southeast Asia and North America have seen particularly strong performance due to their large user base and high market acceptance.
4.Challenges and Trends
The competition in TikTok Shop’s market has become more intense, with product selection and traffic generation being the two main challenges for sellers.
Research shows that 29% of sellers are concerned with choosing the right products, while 25% are focused on marketing and driving traffic. Other challenges include changes in platform policies, account security, logistics, and staffing issues.
In addition, the platform has increased commission rates in some markets, putting higher pressure on sellers’ profit margins.
Step-by-Step Guide to Making Money on TikTok Shop
Now that we understand how TikTok Shop works, its advantages, and the current market trends, you might be asking, "Okay, with all this information, how can I actually make money on TikTok Shop?"
Don’t worry, we’ll break it down for you step by step.
Step 1: Define Your Goals and Product Selection Strategy
The first step to making money on TikTok Shop is choosing the right product category.
Remember the popular product categories we mentioned earlier? Beauty products, women’s clothing, and sports/outdoor items are all favorites among TikTok users.
However, not everything that’s popular is right for you.
The key is to find products that have market demand and match your strengths. For example, if you're great at creating short videos, visually appealing products like cosmetics or small appliances may be a better fit for you.
Tips:
- Research consumer needs in your target market (e.g., Southeast Asia vs. North America).
- Use tools like TikTok’s trending hashtags and product discovery platforms (like BigSpy) to find trending products.
Step 2: Create Quality Content to Attract Users
TikTok Shop is not your traditional eCommerce platform where you just list products and wait for sales.
Here, everything revolves around content!
The key to short videos is grabbing attention in the first second, while live streaming uses interaction and authenticity to engage users. For example, when selling beauty products, you can create relatable content, such as live “try-on” sessions or “makeover challenges.”
Tips:
- Short videos: Keep it fun and lighthearted, and incorporate trending TikTok challenges or music.
- Live streaming: Answer viewer questions, be approachable, and build trust with your recommendations.
Step 3: Leverage Influencer Partnerships and Platform Promotion
What if you’re just starting out and don’t have a following yet?
In this case, TikTok influencers (KOLs) are your secret weapon. Partner with influencers who align with your product, as their traffic can quickly turn into sales.
Additionally, TikTok Shop offers various advertising and promotion tools, like Dou+ (TikTok’s paid promotion tool), which can help you target your content to the right audience.
Tip:
- When partnering with influencers, prioritize local influencers from your target market to increase credibility.
- Set an advertising budget and optimize your campaigns based on trial-and-error data.
Step 4: Optimize Logistics and Customer Service
Don’t forget—great products and content are just the first step. Logistics and customer service also play a big role in your reputation and repeat sales. This is especially true in cross-border eCommerce, where choosing reliable logistics channels is crucial.
Tip:
- Use TikTok Shop’s official logistics services (like TikTok Logistics) to ensure timely delivery and reasonable costs.
- Handle customer issues promptly to improve your ratings and enhance your store’s authority.
Step 5: Keep Learning and Adjusting
TikTok Shop is a fast-moving platform, with user preferences and platform policies constantly evolving.
So, continuous learning is key. Stay updated on industry trends, analyze your content performance, discover what styles your audience enjoys, and keep optimizing.
Top-Selling Products on TikTok Shop: A Niche Analysis
We’ve just talked about how to make money through TikTok Shop, so now let's take a look at some of the trending products on the platform and why they’re blowing up.
Note: The following are observations of TikTok trends and should not be considered as final product recommendations. Sellers should carefully consider IP, copyright issues, and potential risks when selecting products.
1. MySmile LED Teeth Whitening Device
The MySmile LED Teeth Whitening Device has recently become a hot-selling beauty product on TikTok, especially in the US.
Compared to expensive traditional teeth whitening methods, this device is simpler and more convenient, promising to remove surface stains and discoloration in just 10 minutes.
It has quickly gained popularity among American consumers, with a TikTok store selling 61,000 units in just 30 days.
Video Data
The highest-viewed TikTok video related to this product has over 36.6 million views, with over 2.6 million likes. The product’s search volume on TikTok has reached 116 million.
Popular videos often come from influencers with fewer than a million followers, with video lengths around 60-90 seconds and commissions ranging from 15% to 30%.
Why It’s a Hit?
The product is often featured in videos that match the influencer’s style, using subtle product placements to introduce it to their followers.
Content includes product reviews, demonstrations, before-and-after comparisons, and more, with the influencer’s charm and expertise showcasing the product’s appeal, which leads to a strong “grass-planting” effect (encouraging viewers to buy).
Consumer Insight
Americans are highly focused on teeth whitening, and it’s a habit they start cultivating from a young age.
About 67% of American adults have tried to whiten their teeth, either through professional methods or products like toothpaste and strips. Teeth whitening is also one of the most popular dental procedures in the US, making up 32% of all dental clinic visits.
2. The Freezy Cup
On hot summer days, a cold drink with ice is a popular way for Americans to beat the heat, and the demand for ice cubes has created a sales opportunity on TikTok.
Recently, TikTok influencers sparked viral interest in a creative “Freezy Cup” product, which not only became popular on TikTok but also led to a buying frenzy on other eCommerce platforms.
Video Data
The highest-viewed TikTok video about the Freezy Cup has over 32.9 million views, with over 1.3 million likes. The ice-making machine’s TikTok hashtag has gained over 846 million views.
Why It’s a Hit?
The video’s content focuses mainly on the product’s function, with the biggest appeal being its design, which combines a “stress-relief toy” feature.
The process of extracting ice, with its satisfying crunching sounds, is similar to the popular “pimple-popping toy” videos from previous years. The unique manufacturing process and creative design caught users' attention.
Consumer Insight
In recent years, TikTok has seen a rise in products like the Freezy Cup. Compared to expensive home ice machines, these small, affordable ice makers are easy to use and often combine a mold and a water cup into one, making them portable, easy to carry, and perfect for ice production.
Ice-making tools have a huge demand in the US, as do the ice cubes themselves.
3. Spiral Curling Iron
The Spiral Curling Iron is another beauty tool that recently became popular on TikTok.
This product is easy to use, requiring just a simple press of a button to rotate automatically, making it quick and effortless to create curls—perfect for those who want fast results. It became a top-selling item, with 65,000 units sold in just 30 days.
Video Data
The highest-viewed TikTok video featuring this product has over 39.3 million views, with over 1.1 million likes. The product’s hashtag has gained 130 million views. Popular videos are usually under 15 seconds long.
Why It’s a Hit?
Influencers often compare the product’s different features and showcase its performance across various use cases. The videos mix in current fashion trends, such as “Y2K babe looks” and “party makeup,” creating a high-end feel for the product.
Additionally, before-and-after comparisons make it easy for followers to see the benefits, with the influencers’ credibility boosting sales among TikTok’s female audience.
Consumer Insight
The COVID-19 lockdown had a significant impact on beauty and hair salons in North America, leading to a surge in demand for at-home hair tools.
As people become more focused on their appearance, self-grooming, and hygiene, the market for beauty tools continues to grow. Social media’s influence on beauty standards also helps drive this trend.
4. Mermaid Shell Candle Lamp
When the live-action "The Little Mermaid" movie was announced, it sparked a wave of excitement on social media, especially as the premiere and trailers went viral. This created a surge in interest in mermaid-themed products, and a mermaid shell candle lamp quickly became popular on TikTok.
Video Data
The video has over 14.5 million views and more than 2 million likes, with over 3,000 comments. The mermaidcore trend has accumulated 15 billion views on TikTok, with hashtag views reaching 187 million.
Why It’s a Hit?
Most viral videos are inspired by underwater creatures, creating DIY home decor items that match the general idea of a mermaid’s habitat. The trend expanded to furniture, fashion accessories, and ocean-inspired products, all gaining significant views.
Consumer Insight
Mermaid aesthetics don’t require flashy designs; they represent a fashion attitude.
On TikTok, mermaidcore shares some overlap with other trends like Y2K, and blending new and old trends can bring unexpected success.
5. Shark Blanket
After the global success of The Meg 2 and Discovery Channel’s return of "Shark Week," shark-themed products became hot sellers. One product that gained massive attention was the Shark Blanket, which was featured on TikTok and sold thousands of units in just over a month.
Video Data
The highest-viewed TikTok video related to the Shark Blanket has over 24.8 million views, with more than 3.5 million likes. The hashtag #sharkblanket has gained 64.6 million views.
Why It’s a Hit?
The viral videos use a clever narrative approach, often starting with a funny scenario, like “She thinks she’s a shark,” to grab viewers’ attention.
The blanket’s design is cute and quirky, making it particularly appealing to female audiences and driving strong exposure.
Consumer Insight
Consumers overseas are interested in personalized designs and custom products. Unique packaging, personalized gifts, and custom items often drive user engagement and sales.
Using BigSpy to Spy TikTok Shop Winning Products
After all this talk, the core of TikTok Shop can be summed up in one word—capture!
Capture the trends, capture consumers' attention, and capture the right tools to optimize your strategy.
As we’ve discussed, from understanding the competitive environment on the platform, to choosing the right products, and then using tools like BigSpy to analyze trends and identify potential viral products, every step is crucial.
But what’s the most important thing?
Innovation!
Don’t forget, this platform is a creative space. Success isn’t just about following trends; it’s about how you connect with consumers in your own unique way.
So, go ahead with curiosity and action, and give it your all! TikTok Shop will bring you unexpected surprises!
FAQs
How to start a TikTok Shop?
1.Check eligibility: Make sure TikTok Shop is available in your country and you meet the requirements (e.g., valid business license, tax information, etc.).
2.Register an account: Go to the TikTok Shop Seller Center and register as a seller using your TikTok account or email.
3.Submit documents: Complete identity verification (business or personal) and upload necessary documents such as your business license and identity proof.
4.Set up your store: Fill in your store information, including brand name, category, and operating country. Upload your product list with clear descriptions and high-quality images.
5.Link payment method: Set up your payment account to ensure smooth transactions and that funds are deposited into your account.
6.Optimize content marketing: Use TikTok’s video format to create creative content or collaborate with influencers to increase product exposure and conversion rates.
How to sell better on TikTok Shop?
1.Optimize product selection: Choose products that meet the needs of your target market, focusing on best-sellers, trendy, and seasonal items. Select products that can be easily promoted through TikTok’s short videos.
2.Create engaging video content: The core of content commerce is video. Post creative, relatable videos that showcase your product's unique selling points, usage scenarios, and real-life results, using popular music and hashtags to boost visibility.
3.Collaborate with TikTok influencers: Work with influencers whose style matches your brand. Their influence can help build trust and increase conversions.
4.Use paid ads: Use TikTok’s advertising tools to target your audience accurately and increase product exposure. Optimize your ad strategy by analyzing data.
5.Optimize store page: Ensure your product pages are clear and complete, with detailed descriptions, genuine reviews, and high-quality images to build trust and encourage purchases.
6.Monitor data analytics: Track sales and content performance using TikTok Shop and other tools. Continuously optimize your product selection, marketing, and operational strategies.
How to earn commissions through TikTok Shop?
1.Become a TikTok Shop influencer: Create creative short videos related to products to attract viewers to click and buy. You can earn a commission (typically 15%-30%) from each sale, depending on your agreement with the seller.
2.Use live stream sales: Collaborate with merchants to host live sales events. Showcase products during the live stream and recommend them to viewers. You earn commissions when they purchase through your link.
3.Promote product links: Place TikTok Shop product links in your video descriptions or use TikTok’s "Shop" feature to embed product links in your content. You'll earn a commission whenever a viewer purchases through your link.
4.Join the TikTok Affiliate Program: Through TikTok's affiliate program, you can promote products on the platform and earn commissions on your recommendations. The program allows you to collaborate with multiple merchants, increasing your opportunities to earn.
What countries is TikTok Shop available in?
1.Asia: Southeast Asia (Philippines, Malaysia, Thailand, Vietnam), Japan, South Korea, Indonesia
2.Europe: UK, Germany, France, Italy, Spain
3.Americas: United States
4.Middle East: Saudi Arabia
Is selling on TikTok Shop worth it?
Selling on TikTok Shop can definitely be worth it, especially for these reasons:
1.Massive traffic pool: TikTok has over 1 billion monthly active users, especially the young Gen Z demographic, meaning you can reach a large potential customer base, increasing exposure and sales opportunities.
2.Content-driven sales model: TikTok’s short videos and live streams can greatly boost users' desire to buy. Creative videos, user interaction, and influencer collaborations can effectively increase conversion rates.
3.Low entry cost: Compared to traditional e-commerce platforms, TikTok Shop has a lower entry barrier and continually introduces policies and tools that support sellers, making it easier to enter the market.
4.Cross-border e-commerce opportunities: TikTok Shop supports global operations, so sellers can not only sell in their local market but also expand internationally by leveraging TikTok's global platform for cross-border sales.
5.Platform support: TikTok continues to improve seller support services, including advertising tools, data analytics, and user feedback, which help sellers refine their marketing strategies and operations.
