8 min read

How to Sell on TikTok Shop?

Learn how to set up TikTok Shop, leverage tools like live shopping and affiliate programs, and boost your e-commerce success!

Written by

Dan Ragan

Published on

February 23, 2025

You've seen it—TikTok is everywhere, and now it's changing the e-commerce game. TikTok Shop is a platform where businesses can sell directly within TikTok.

Picture this: live shopping events, shoppable videos, and even affiliate programs—designed to help you engage your audience and drive sales like never before.

Excited to jump in? You're in the right place!

In this guide, we'll break down everything you need to know about TikTok Shop, including:

How TikTok Shop Works

Steps to Set Up Your TikTok Shop

Tools and Features to Boost Sales

Cost of Selling on TikTok Shop

Creating Content for Your TikTok Shop

Running Ads for TikTok Shop Success

Leveraging Affiliate Programs to Increase Sales

Tips for Optimizing Your TikTok Shop Performance

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Let's get started!

Do People Make Money on TikTok Shop?

Absolutely! TikTok Shop transforms how businesses sell by integrating powerful features directly into the app.

For instance, Rebellious Fashion's success on TikTok Shop speaks volumes, achieving 45x revenue growth and 400% increased sales within three months. Impressive, right?‍

Here's why it's a game-changer:

In-App Shopping Experience: TikTok Shop allows customers to browse, learn about, and purchase products without leaving the app. This seamless shopping experience removes barriers, making it easier for users to buy instantly.

Live Shopping Events: Through live streams, sellers can showcase their products in real-time, answer questions, and interact with viewers, creating a dynamic and engaging shopping experience. These events feel personal and build trust with potential buyers.

Shoppable Videos: Businesses can tag products in regular TikTok videos, making their content entertaining and directly actionable. Users can click on the tags to explore and purchase items immediately.

Affiliate Program: TikTok Shop enables partnerships with creators who can promote products to their followers. This collaboration combines authentic content with targeted reach, driving sales effectively.

How Does It Work?

Here's a detailed step-by-step guide to set up your TikTok Shop and start selling.

Live Shopping on TikTok

Wouldn't an exclusive discount or a live demo make you click "add to cart" faster? Live shopping lets you show customers how your product fits into their lives and promote impulse purchases, especially when paired with discounts or promotions.

Why does it work so well? ‍

For starters, it's interactive! When you demonstrate a product, viewers can click on pins to add items directly to their cart, so there is no need to leave the app.

How to chat with customers while they shop? TikTok makes that easy with tools like:

Moderator Support: Invite moderators to manage comments, keep the conversation positive, and ensure a smooth broadcast.

Co-Hosts and Guests: Collaborate with influencers or experts to share insights or demonstrate product usage, adding credibility and variety.

Filters and Effects: Add fun and polish with creative filters, effects, and green screen backgrounds to create an immersive experience.

Q&A Panel: Respond to viewer inquiries quickly and efficiently using the dedicated Q&A feature for real-time engagement.

This is your chance to create an experience, not just a transaction. But do it right! Here are some tips for successful Live:

Schedule your livestream at peak engagement times and outline key points you want to highlight.‍

Demonstrate how your product solves problems or enhances users' lives, focusing on value.‍

Use time-limited offers to encourage immediate purchases during your live session.‍

Keep the session lively by interacting with viewers, answering questions, and using engaging visuals.

Shoppable Videos on TikTok

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Have you ever paused while scrolling to purchase something that caught your eye? Well, shoppable videos have a similar effect on users!

It lets you showcase your products while viewers shop directly from the video. ‍

How can you create videos? TikTok offers tools like AI-generated video options and customizable templates to simplify content creation. ‍

Want to track your success? Use the "Content Data" tab to monitor views, click-through rates, and other performance metrics, helping you refine your approach.

Wondering how to grab attention? Add trending songs, hashtags, and clear messaging to make your products stand out. Shoppable videos turn casual browsing into action, giving your products a strong presence and sales.

To learn how to create your first shoppable video with transitions, filters, product links, and more, check out TikTok's official Guide to Shoppable Video

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Product Showcase on TikTok Shop

Have you noticed the shopping bag icon on TikTok profiles? The Showcase feature is an interactive tool that displays products directly on an account's profile page. Customers can browse and shop, making it valuable for sellers and creators.

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But how is Showcase different from TikTok Shop? Unlike TikTok Shop, which requires a dedicated inventory managed by the shop owner, Showcase allows sellers to display products from various TikTok Shops without owning one themselves.

For example, marketing or TikTok affiliate accounts can use Showcase to promote and sell selected items from multiple shops.

Here's how you can use it:

Official TikTok Account: Showcase all your products directly.

Marketing Account: Highlight a selection or all of a brand's products.

Affiliate Account: Promote products from one or multiple brands.

Curious about optimization? Showcase ads are tailored to promote the items visible in your profile's Showcase tab, while TikTok Shop ads focus on your shop's specific inventory.

Where can you use it? According to TikTok advertising policy resources, they are available in markets like the U.S., the UK, and several Southeast Asian countries.

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Setting Up Your TikTok Shop Account

The first stop is the TikTok Seller Center. This platform allows you to manage your e-commerce business directly, from store operations to customer service. But, before beginning, ensure you have:

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Eligibility in your region.

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Business verification documents (passport, ID, or business registration papers).

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A valid bank account for payments, phone number, and email address ‍

Now, we can move on to the steps to set up your shop:

Sign Up: Login using your TikTok account, email, or phone number > Select your country.

Choose a Business Type: Individual Seller, Corporation, or Business Partnership > Provide legal details like your name and EIN number for verification.

Add Warehouse or Pickup Address: Enter your business location > Optionally set a return address for product returns.

Verify Your Information: Upload the necessary documents.

Link Your Bank Account: Provide payment details for transactions.

Final Review and Approval: TikTok will review your application > If rejected, TikTok provides instructions for resubmission.

Don't forget to sign up for the TikTok Shop Affiliate Program and choose a plan! This program allows you to partner with content creators and influencers who promote your products to their followers, earning a commission for every sale they generate.

How does it benefit your business? It leverages the creators' audience to generate more orders while you only pay commissions on successful sales. So, it's also cost-effective!

To sign up, follow these steps:

Log In to TikTok Shop Seller Center > Access your Seller Center account to start setting up your affiliate program.‍

Navigate to the Affiliate Marketing Section > Select Affiliate Marketing at the top menu.‍

Select a Plan That Works for You:‍

Shop Plan: Set a standard commission rate for all products in your shop. Perfect if you want to make all your inventory available to creators.
Targeted Plan: Choose specific products or work with selected creators to focus your affiliate efforts on high-priority items.
Open Plan: Allow any creator to apply to promote your products. You approve applications, giving you control over who represents your brand.

Set Your Commission Rates
Publish Your Affiliate Program

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TikTok Shop Fees

TikTok Commission fees range from 4.5% to 10.5%, depending on the product category, which is automatically deducted after an order is successfully delivered.

Starting January 15, 2025, these rates increase slightly for Marketplace Sellers (e.g., 7.0% for Fashion Accessories) and more significantly for Mall Sellers (8.1% for Fashion Accessories).

There's also a TikTok Transaction Fee of 3.5%, covering secure payment processing services like credit card payments.

Additionally, sellers using the TikTok Shipping Fee Program (SFP) enjoy a 0% service fee and benefits like extra shipping labels and free shipping vouchers.

Example of a product priced at $900:‍

Commission Fee (7.9%): $71.10

Transaction Fee (3.78%): $34.02

Total Fees: $105.12

Need Help Making Your TikTok Shop a Success?

We've walked you through the essentials of setting up and booming on TikTok Shop, but high profit requires high-quality, tailored content and creator partnerships that match your target audience.

That's where you can use our help!

UGC Factory specializes in creating user-generated content and connecting brands with creators for better visibility and conversions. Schedule a call today for your quote!