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All You Need to Know About TikTok Shop

All You Need to Know About TikTok Shop

Stella Gradiana
February 27, 2023

With over 250M TikTok users in Southeast Asia, it presents an opportunity for TikTok Shop to enter the market and compete with other popular shopping platforms and marketplaces. Brands are beginning to establish their own TikTok Shops to tap into this extensive potential audience, but not all businesses are familiar with this platform. Our goal for this blog is to assist you in becoming acquainted with this emerging shopping platform.

‍What is TikTok Shopping?

TikTok shopping offers users a convenient method of purchasing products without leaving the app, much like Instagram Shopping. For retailers in the e-commerce industry, TikTok simplifies the promotion of products and services directly on their platform. By capitalizing on influencer-promoted products and removing the need for users to visit a website to purchase the product, TikTok shopping streamlines the shopping process.

‍Why TikTokShop?

1. A potential to reach a wider audience: Shopify as one of TikTokShop partners shared statistics about TikTok and TikTok Shop:

  • TikTok has 1 billion users, with 226.8 million in Southeast Asia. According to App Annie, each person spends about 3 to 38 minutes on the platform.
  • 20.6% of shoppers mentioned they buy items on TikTok.

2. Seamless and practical interface to shop: Sellers can tag your products on your content. You can use both your own or influencers content to link it to your TikTokShop. When your potential customers are interested in certain products, they can just click the tappable link to see the products and add it to cart.Β 

3. Interact with your customers real time: The feature of live shopping enables you to answer any questions and needs of your customers in real time chat. Therefore, it helps them to decide quickly, whether to buy or to skip the products.

4. Various promotion programs to increase visibility and conversions: Your customers will surely love flash sales or special deals. TikTok Shop offers this feature. TikTok will showcase your shops or products on the top of the result page if you join these events. In brief, it may increase your conversions.

‍What are the Requirements of TikTok Shop?

Every seller that showcases their products in TikTok Shop should be able to fulfill these requirements:

1. Ticking all the boxes for sellers' eligibilityΒ 

  • Live in Indonesia, the United States, the United Kingdom of Great Britain, and Northern Ireland
  • Have a business license in which the validity period and scope align with your business.
  • State that your business does not work based on Ponzi, pyramid scheme, or multi-level marketing. Sellers under or have been subjected to trade and consumer protection authority are not allowed to register TikTok Shop.

2. Creating a shop name that is in line with the TikTok guidelines

3. Providing valid and legal address of your business

4. Submitting all the verification documents

  • Individual Applicant: aligned with the respective law and regulations in the destination market.
  • Corporate Applicants: scanned business license in .png or .jpg format. The licence should have the following points.
  • Name of business, scope, valid period, and company registration number.
  • Issued by the competent government,

5. Submitting an accurate bank account

6. Provide other documents needed, such as bank account & VAT number

‍How Can You Set Up a TikTok Shop?

  • Register Yourself on TikTok Shop. First, you must sign up on TikTok Shop with your TikTok Account or email address. Then, you need to fill in an application form. Next, wait for the results for 1-2 days before your application is approved.
  • Add your products. Make sure your products are not one of the products restricted or prohibited by TikTok guidelines.
  • Verify Your Documents. You will be required to submit some documents and personal/corporation details. Your customers will be able to see the details on your TikTok Shop. Once it is approved, you will not be able to change it.
  • Link Your TikTok Shop with a Bank Account. After you complete the verification process, you will be able to input your bank details.

‍How do I use TikTok Shop?Β 

TikTok Shop delivers almost the same experience as Instagram Shopping. It allows sellers to do live shopping, link your content to your products, and showcasing them on the catalog.

  • Live Shopping: Brands have a unique opportunity to connect with their audience through a trendy feature called "live shopping." Essentially, this involves a live session where a brand representative showcases and sells their products while engaging with viewers in real-time. Some brands even offer customers the chance to haggle for a better deal during these sessions. To spice things up, brands can team up with influencers or tap into their own in-house talent to make their live shopping experience even more exciting.
  • Product Links: Product links allow merchants to place product links in their content, allowing customers to add the products offered or used in the content to the cart directly.
  • Products Showcase: You can create your catalog on your TikTok page by incorporating key details of your products, such as names, descriptions, prices, photos, videos, and other relevant information.

‍What the the different Shopping Ad formats available on TikTok?

There are currently three ad types:

1. Video adsΒ 

TikTok's video shopping ads allow advertisers to create clickable videos and allow viewers to shop within the For You page.

This ad format combines features from two pre-existing TikTok ads: collection ads and dynamic showcase ads.

Video shopping ads dynamically merge video creative and product cards in various ways, which can be customized to focus on a particular product for sales or a more general brand message to increase awareness. As TikTok collects data, it dynamically selects the best-performing combinations to optimize campaign performance. When users interact with the ad, TikTok generates an in-app landing page to gauge their intent to purchase. These pages allow shoppers to learn more about the products and guide them to the retailer's site when they're ready to buy.

2. Catalog Ads

Advertisers can leverage catalog listing ads to promote their product catalogs across various placements on the platform.

One of the advantages of catalog listing ads is that advertisers do not have to create video content, which may be a plus for some brands.

This ad format enables brands to engage with the TikTok audience without producing videos, which is a novel concept on the platform. Catalog listing ads draw product images from a retailer's catalog and promote them in shoppable placements. Your ads may also be served through branded content on the For You page.

3. Live Shopping Ads

Live shopping ad is a unique ad format that's tailored to promote live shopping streams.

The ads are aimed at directing viewers from the For You page to a live shopping event.

With the growing number of TikTok users, brands have a vast audience to tap into on the platform. TikTok Shop presents a unique opportunity for brands to exhibit their products and engage with their customers during live sessions, making it a convenient option for customers to purchase products within the app.

‍Keen to find out more about taking your TikTok ads to the next level? Earn a free consultation with KPI Media to get a customized strategy on TikTok advertising to elevate your brand and propel you toward success.

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