Detailed Steps to Make Money on TikTok Shop

TikTok has become more than just a platform for sharing short, entertaining videos. It has evolved into a powerful marketplace where creators and businesses can generate significant income. TikTok Shop, the platform’s e-commerce feature, allows users to promote and sell products directly through their content.

TikTok Shop has become a powerful platform for businesses and creators to leverage the app’s massive user base and drive sales. Whether you’re a seasoned entrepreneur or a creative mind with a loyal following, TikTok Shop offers exciting opportunities to monetize your presence. This guide delves into everything you need to know about making money on TikTok Shop, from understanding the different approaches to creating a winning strategy.

What is a TikTok Shop and How Does it Work?

TikTok Shop is simply a connected Ecommerce feature within the TikTok app that allows users to buy and sell products. It enables creators and businesses to showcase products directly in their videos, live streams, and profile pages. This integration simplifies the shopping experience for users, making it easier for them to order products straight from the app.

Since its international launch in 2017, TikTok has quickly influenced culture, politics, fashion, and more. This platform continues to expand rapidly each year. By 2024, nearly 108 million people in the United States use TikTok. The app’s popularity among Gen Z users offers entrepreneurs a significant marketing opportunity.

To capitalize on TikTok’s vast audience, consider the strategies of top creators and marketers on the platform. Learn how to generate income on TikTok through various methods, including selling fan merchandise and offering paid subscriptions.

Notable TikTok Shop Features

• In-feed Video and Live Shopping: This feature allows users to buy products tagged in TikTok videos and live streams directly from their feed.
• Product Highlights: Sellers can assemble and organize collections of products for sale on TikTok and display them on their profile page. Users can browse products, read reviews, and buy directly from a business’s profile.
• Shop Tab: Users can find promotions, discover new products, and make purchases within the Shop tab in the app.
• Affiliate Program: Individuals and businesses join the TikTok affiliate program and promote products using their unique affiliate link. When customers purchase one or more products, affiliates receive a commission. 
• Shop Ads: Similar to ads on Instagram, Facebook, and other social media platforms, these ads allow sellers to advertise to TikTok users.
• Fulfilled by TikTok: TikTok will store, pick, pack, and ship items to customers through their chosen vendors, easing the burden on sellers. 

Making Money on TikTok Shop

Both sellers and creators can make money on TikTok Shop. Sellers can showcase their products, while creators can use the affiliate program to partner with brands and promote their products. Payments are processed, and both parties receive their earnings through the bank account they connect to TikTok.

Steps on How to Make Money on TikTok Shop

Follow these steps and strategies to make money on the TikTok shop.

Step 1: Create a TikTok Account

To start, you need a TikTok account. Follow these steps:

1. Download the TikTok app from the App Store or Google Play Store.
2. Open the app and sign up using your email, phone number, or social media account.
3. Set up your profile by adding a profile picture, bio, and any other relevant information.

Step 2: Become a TikTok Shop Creator

Next, you need to register as a TikTok Shop creator:

1. Switch to a Pro Account by going to your profile, tapping the three dots in the top right corner, selecting “Manage Account,” and then choosing “Switch to Pro Account.”

2. Choose “Business” and complete the required information.
3. Apply for TikTok Shop by visiting the TikTok Shop registration page, filling out the application form, and submitting the necessary documents. Wait for approval, which typically takes a few days.

Step 3: Identify Viral Products

Finding products that have the potential to go viral is crucial. Here’s how:

1. Research trends on TikTok by browsing popular hashtags and videos.
2. Use tools like Google Trends and TikTok’s Discover page to identify rising products.

3. Analyze competitors to see what products are performing well.

Step 4: Sourcing Products

Create Your Own Products

If you have the skills and resources, creating your own products can be highly profitable. Handmade goods, custom apparel, and unique accessories often perform well on TikTok.

Partner with Suppliers

If creating products isn’t feasible, partner with suppliers. Use platforms like Alibaba, AliExpress, or local wholesalers to source quality products at competitive prices.

Dropshipping

Dropshipping is another option. With dropshipping, you don’t need to hold inventory. When a customer places an order, your supplier ships the product directly to them. This method reduces upfront costs and simplifies logistics.

Step 5: Buy or Request Free Samples

Once you’ve identified potential products, obtain samples:

1. Contact suppliers and request free samples. Explain that you’re a TikTok creator and plan to feature their products.
2. Alternatively, purchase small quantities of the products to review and showcase.

Step 6: Upload Products with Genuine Reviews

Creating authentic content is key. Follow these tips:

1. Record videos that showcase the product’s features and benefits.
2. Use high-quality images and videos for your product listings.
3. Provide genuine reviews and demonstrate the product in use.

Step 7: Add Product Links

Make it easy for viewers to purchase your products:

1. Use TikTok’s product link feature to add links directly in your videos and bio.
2. Ensure the links lead to a seamless checkout process.

Step 8: Promote Your Product

Promotion is critical to driving sales. Here’s how to do it effectively:

1. Create engaging and informative content that highlights your product.
2. Utilize popular TikTok trends and challenges to increase visibility.
3. Post consistently and at optimal times to reach a larger audience.

Step 9: Partner with TikTok Creators

Collaborating with other creators can amplify your reach:

1. Identify influencers whose audience aligns with your target market.
2. Reach out with a collaboration proposal, offering them free products or a commission on sales.
3. Create joint content that promotes your products authentically.

Step 10: Join the TikTok Creativity Program

Creators with a significant following can earn money through the TikTok Creativity Program. Launched in May 2023, this program replaced the TikTok Creator Fund. To qualify, U.S.-based creators need at least 10,000 followers and 100,000 authentic video views in the past 30 days. 

Eligibility:

• Creators must be at least 18 years old.
• Creators must meet the minimum follower and video view requirements.
• Accounts must be properly maintained, active and compliant.
• Creators currently in the TikTok Creator Fund can make a switch to the Creativity Program.

Step 11: Go Live for Virtual Gifts

TikTok stands out with its live streaming feature, which allows followers to send virtual gifts in real time, which creators can redeem for payment. LIVE Gifting is a valuable tool for monetizing content through live streaming.

Engaging with your audience in real time builds strong relationships with your fans. Audiences who feel connected to a creator often become more invested in their success, which can enhance other monetization efforts. If you create or sell products online, use livestreaming to showcase your items. Many e-commerce retailers find that TikTok LIVE generates more shopper interest than live features on other social media platforms.

Step 12: Optimize Your Sales Funnel

To maximize sales, optimize your sales funnel from awareness to purchase:

Drive Traffic to Your Profile

Use your videos and ads to drive traffic to your profile. Include a call-to-action in your videos, directing viewers to visit your profile and check out your shop.

Capture Leads

Offer incentives like discounts or freebies in exchange for email sign-ups. Use these leads to build a mailing list and nurture potential customers with targeted email campaigns.

Simplify the Checkout Process

Ensure your checkout process is smooth and user-friendly. Minimize the steps required to complete a purchase and offer multiple payment options.

Provide Excellent Customer Service

Respond promptly to customer inquiries and address any issues quickly. Positive customer experiences lead to repeat sales and word-of-mouth referrals.

Step 13: Stay Compliant

Ensure your business complies with TikTok’s policies and legal requirements:

Follow TikTok’s Guidelines

Adhere to TikTok’s community guidelines and advertising policies. Violating these rules can result in account suspension.

Comply with Legal Requirements

Make sure your business complies with local laws, including consumer protection regulations, tax obligations, and privacy laws.

Making the Most of TikTok Shop Features

TikTok Shop offers several features specifically designed to help sellers and creators thrive. Here’s a closer look:

• Product Links and Tags: These features allow you to seamlessly link products directly to your videos, making it easy for viewers to purchase with a single click.
• TikTok Shopping Ads: Leverage TikTok’s powerful ad platform to target specific demographics and interests, driving traffic to your product listings or affiliate links.
• Livestream Shopping: Live Streaming allows for real-time interaction with your audience. Promote new products, offer exclusive discounts, and answer questions live to create a more engaging shopping experience.

Conclusion

TikTok Shop offers a unique and lucrative opportunity for content creators, brands, and entrepreneurs to monetize their presence on one of the most popular social media platforms. By understanding the features and leveraging them effectively, you can maximize your earnings through TikTok Shop. From engaging in live shopping and utilizing the affiliate program to creating captivating product showcases and running ads, the potential for success is vast.

Engage with your audience in real time, build strong relationships, and continuously adapt your strategies to stay ahead of trends. The tools and features provided by TikTok Shop can help you turn your creativity and entrepreneurial spirit into a profitable venture.

Frequently Asked Questions

Q1. How to register to TikTok Shop as a creator?

To register as a TikTok Shop creator, switch to a Pro Account, select “Business,” and apply for TikTok Shop on the registration page by completing the application form and submitting the necessary documents.

Q2. Is selling on TikTok Shop worth it?

Yes, selling on TikTok Shop can be highly profitable due to the platform’s large, engaged user base and the seamless integration of e-commerce features.

Q3. How many followers do you need for a TikTok Shop?

According to the TikTok Shop Creator Eligibility Policy of June 2024, there is no specific follower requirement to join TikTok Shop as an Official Shop Creator. But, having a larger following can increase your visibility and sales potential. However, to become a TikTok Shop marketing or affiliate creator, you must have at least 5K followers. 

Q4. How much commission does TikTok Shop take?

TikTok Shop charges a commission on each sale, which varies depending on the product category and other factors. Check TikTok’s official guidelines for the most current rates.

Q5. What are the requirements for the TikTok Shop?

Requirements include having a TikTok Business Account, complying with TikTok’s policies, and providing necessary business and identity documentation during the application process.

Q6. How many followers do I need to sell on TikTok Shop?

You need at least 5,000 followers to sell on TikTok Shop as an affiliate. You must also be 18 years old and use a Business account to access this feature. TikTok Shop allows you to customize your profile to display a product catalog and add shoppable tags to your live stream videos, enabling direct sales from TikTok. However, in some exceptional cases, TikTok lowers the followers requirement for creators from 5,000 to 1,000 followers. Such creators are presented with a Sign-up page and can enroll themselves. On the other hand, if creators with 1,000 or more followers cannot sign up, it means they are not considered eligible by TikTok to join this program. 

Q7. Is selling on TikTok Shop worth it?

Yes, selling on TikTok Shop is worth it. With small referral fees, low acquisition costs, and highly engaged 1 billion users worldwide, TikTok Shop offers significant potential for brands to succeed.

Q8. How does TikTok Shop pay you?

After a customer places an order through TikTok Shop, TikTok processes the payment and transfers the funds to the bank account you have connected to your TikTok account.

Q9. How do I claim money from the TikTok Shop?

Once an order is settled, the amount is automatically paid to the bank account linked to your TikTok account. If no bank account is linked, you will receive a pop-up in your TikTok Shop dashboard prompting you to set up a bank account.