How to Succeed and Scale on TikTok Shop

Everyone is talking about TikTok Shop, including brands, sellers, and customers of all ages. Launched in September 2023, TikTok Shop is a comprehensive eCommerce solution that allows you to showcase and sell products directly on TikTok. With TikTok's powerful discovery engine, 70% of users report finding new brands and products on the app.

But what does it take to succeed and grow on TikTok Shop? Whether you are already actively selling on the platform or just beginning your TikTok Shop journey, we will clarify some common myths about TikTok and provide valuable expert tips for achieving success. Additionally, we will explore TikTok Shop’s Affiliate program and the opportunities for brand growth through social commerce.

​​Myth #1: TikTok Is Only for Gen Z

The latest stats show over 1.582 billion monthly active TikTok users worldwide, and 170 million of those are in the US. While TikTok is a great platform for brands to focus on attracting Gen Z users, it’s important to note that 44% of users are over 35 years old. As TikTok gains popularity, different age groups are increasingly joining the app.

51% of Gen Z use TikTok as their primary search engine and have over $360B in collective spending power, TikTok data shows. Instead of using Google and Amazon, Gen Z customers search for new brands and products on TikTok. The number of users exploring TikTok will only increase as the platform grows and Generation Alpha gains spending power.

Myth #2: You Need a Huge Following to Succeed

You can benefit from having a large following on TikTok, but it isn’t crucial for your success. The TikTok algorithm prioritizes engaging content over follower count, meaning accounts with a small audience can generate sales if their content resonates with their audience. Therefore, it makes it easier than other platforms for brands to gain visibility without a large pre-existing base.

While TikTok suggests posting as many times as possible daily, it can be intimidating for brands. To beat the algorithm, post at least once a day. To give you some ideas, you can post about your products or brand inspiration, or entertain your audience with funny bloopers. You don’t need high-quality production or long videos. The point of posting is to get the TikTok algorithm to familiarize itself with who you are as a brand. It takes time and effort, but you will be rewarded once it begins to recognize you. 

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Partnering with the right Creators is key to growing your brand quickly on TikTok. For example, if you're a beauty brand, you should partner with someone whose TikTok followers resonate with your products and align with your target audience. Use the right hashtags for your brand, analyze your competitors, and take advantage of the latest trends. 

Engagement and education are crucial and can help your brand grow faster on the TikTok platform. You want to engage with your customers and partner with Creators who can promote your products and educate people. Help the Creators understand the value proposition of your brand and your products so that they can present them accordingly. 

Myth #3: TikTok Is Only for Entertainment, Not Purchases

As mentioned earlier, many TikTok users search and discover new brands and products on the app. According to Bloomberg, TikTok Shop in the United States is projected for significant growth in 2024 with $17.5 billion forecasted in GMV. 

The TikTok Shop user journey of discovery, consideration, purchase, and participation is not linear. 83% of app users look to TikTok for product reviews, 67% of TikTok users say that they're likely to purchase something, and 25% of users post content showing off a product that they bought. 

Myth #4: TikTok Shop Is a Short-Game Strategy

TikTok Shop is anything but a short-game strategy. You need to play the long game to attain sustainable growth, from both an awareness and a revenue standpoint. Also, what may work on Amazon or other platforms doesn’t apply to TikTok Shop. To start with a long-term strategy, you will need repeated exposure. 

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Posting content consistently will help build trust with your user base, which, in turn, drives conversions. By posting regularly, you will stay top-of-mind to your customers. Having authentic content will help you build credibility with your audience over time. Affiliate partners and customers can become advocates of your brand on the platform. Ultimately, long-term efforts allow you to analyze performance and refine your strategy to optimize growth on TikTok Shop.

Partner with TikTok Shop Creators

Creators are the lifeblood of TikTok, and on average, 70% of revenue is generated through Creators on the platform. Brands can participate in two types of plans within the TikTok Shop’s Affiliate program—open and targeted. 

With the open plan, sellers upload their products to the TikTok Affiliate and select a commission percentage for each product. Any eligible Creator in the program can access the open-plan products, allowing them to promote these items. That doesn't necessarily mean that every Creator with access to your products can promote them. Whether you want to partner with them is still up to you.

With the targeted plan, sellers can collaborate with specific Creators. This plan creates a more controlled and strategic partnership for product promotion. Unlike the open plan where any eligible Creator can apply to promote a product, target collaboration involves sellers proactively selecting Creators who align closely with their brand and marketing. 

Many brands are on the platform and the Creator base is expanding weekly. With more players in the game, it becomes harder to stand out. 15% to 20% is usually a sweet spot for the affiliate commission rate, but you must ensure you are competitive within your vertical. We suggest utilizing both the open plan and the targeted plan. The open plan is essential, especially if you’re a new brand and don’t have a large following, as it will help you spread awareness. 

How can you select the best Creators that will resonate with your brand? When you look at TikTok, the top quality and the top performing videos are usually very different. That is why we recommend a combined approach. Testing and learning will help you decide which Creators match your brand vision and what types of videos resonate with your products. 

A Multi-Faceted Approach to TikTok Shop

To scale your brand on the competitive TikTok Shop platform you want to start by building your strategy from the ground up. The foundation or ground floor is building a healthy brand Shop. You want to make sure that your account is set up properly. Your integrations are done and synced, your storefront is merchandised, and your listings are optimized. It is vital to remember that the ongoing management of the Shop is just as important as its setup.

Violation points on TikTok Shop can be caused by a shipping delay, a setup error, or a listing issue, among other factors. There are different milestones within violation points and when you hit a certain threshold, it can affect your capabilities to execute your content strategy. So when you hit a particular milestone, you may be unable to participate in campaigns. When you hit another milestone, you may be unable to add any product listings. 

Therefore, your Shop needs to be well-optimized. You won't be able to scale or do anything from a content perspective if you lack a healthy foundation.

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The second floor is your content and affiliate strategy. You lay an organic foundation by posting daily on your brand handle. Partner with Affiliates and Creators for targeted content and leverage organic traction to drive store engagement and initial sales.

From the moment you join the Affiliate Program, start Creator outreach, approve Creators, send them samples, and by the time they post content, it can take around 30 days. So it's crucial, especially early on, to post content on your brand handle. This will ensure that the TikTok algorithm starts recognizing you as a seller while you're getting your affiliate strategy going. 

Many brands launch their Shops and immediately put paid media behind them. But it is important to set your foundation in organic content, have content supply going, get revenue off of a few posts, and then take the opportunity to boost awareness and drive sales using different types of Shopping ads. TikTok Shop ads with the Product sales objective are Product Shopping Ads, Video Shopping Ads, and LIVE Shopping Ads. 

How to Successfully Launch Your TikTok Shop

We have created a comprehensive checklist to help you launch your TikTok Shop. It covers everything from onboarding and operations to content and affiliate strategies. 

✔️ Start with a Hero Product: Launch with a hero product strategy, unless you are one of the few brands with unlimited inventory. This is important both from an inventory and content perspective.

✔️ Lean into Promo Pricing and Campaigns: TikTok offers co-funded coupons for various seasonal campaigns, such as Black Friday and Cyber Monday.

✔️ Create Exclusive Products or Bundles Unique to the TikTok Shop: Consider the products you want to liquidate or move through the inventory. 

✔️ Merchandise and Optimize Your Storefront: Use high-quality images and detailed product descriptions. Observe your competitors regarding product pricing and deals.

✔️ Post Daily: Remember that regular content supply is crucial for success.

✔️ Maximize Affiliate Outreach: Increasing outreach helps to get the flywheel spinning.

✔️ Cultivate Consistent Creator Partnerships Using a Targeted Approach: Benefit from a targeted plan by choosing the best Creators to promote your products and employ a combined TikTok Shop Affiliate plan.

✔️ Educate and Guide Creators on How to Post “Best in Class” Content: If you are an enterprise brand with many layers of content approval, you need to recognize that content on TikTok is driven by authenticity and adjust your strategy.

✔️ Amplify Your Organic Presence with Paid Media: Once you set your foundation with organic content and get the momentum going, it’s time to incorporate Shopping ads into your strategy.

TikTok Shop Expectations Timeline

Let’s cover what to focus on once your TikTok Shop is integrated and live and what to expect in the first 90 days.

Days 1 to 30: During this period, monitor how many Creators you are reaching out to and how many you are approving. Keep track of the number of product samples you’ve sent to Creators, whether through the open plan, targeted plan, or both. It's important to note that TikTok imposes specific rules on new sellers, and these rules can change frequently. For instance, new sellers typically receive 1,000 initial outreach messages to Creators. 

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Days 31 to 60: Analyze the number of videos you have posted and the percentage of those converted into Gross Merchandise Value (GMV).

Days 61 to 90: Focus on the number of units sold, identify which Creators have posted more than once, and determine who has made a sale. At this point, start evaluating paid media efforts and Return on Ad Spend (ROAS).

Collaborate with a TikTok Shop Partner 

Developing a long-term strategy for a TikTok Shop can be overwhelming for brands. Many need more infrastructure and transparency to manage various aspects and keep up-to-date effectively, especially since TikTok Shop is still relatively new and rapidly evolving. It's crucial to stay informed about new initiatives and changes that TikTok implements on both operational and content levels.

You need to remain flexible and adapt your strategy as necessary. This is where a TikTok Shop Partner (TSP) like Blue Wheel can be incredibly valuable. A TikTok Shop Partner is an official third-party service provider authorized by TikTok to assist brands in optimizing their Shops. TSPs offer services designed to streamline processes and help brands grow on TikTok.

Final Thoughts 

In conclusion, TikTok Shop is both a revenue and awareness channel, providing your brand access to a new audience, particularly Gen Z customers. Collaborating with TikTok Creators is essential for your success. By leveraging their authentic content, you can effectively grow your brand.

Launching and scaling your TikTok Shop requires various strategies, so don’t be discouraged. Blue Wheel, one of the official TikTok Shop Partner agencies, offers valuable knowledge and expertise to help your brand succeed on the TikTok platform.

We recommend watching our latest webinar in partnership with BWG Connect to explore more strategies for achieving success on TikTok Shop. Tune in now for expert tips from our Director of Social Commerce, Jana Weinstein.