This post is for sellers who are already selling on Amazon, whether it’s FBA or FBM, as private label or wholesale. Here, you’ll learn how you can sell your existing products on TikTok Shop with no extra investment.
I’ve received multiple queries from Amazon sellers and small brands on how they can sell on TikTok Shop, as it has experienced huge sales and profit differences compared to Amazon. Many of us know how quickly growth is possible on TikTok; one video going viral can lead to 1 to 1000 sales a day, which is never possible on Amazon.
As Amazon increases its fees day by day, under different names like replacement fees, increasing PPC bids, and more, and tries to extract money from sellers from all sides, competition also increases due to Chinese sellers. It’s very hard for new sellers to establish their business, and it’s also hard for old, established sellers to grow their business due to Amazon’s policies.
This post is perfect for private label brand sellers who are already selling and want to increase their revenue. This post may also be a lifesaver for those who are close to shutting down their Amazon business due to competition and high fees; they can try TikTok Shop with no extra investment and see if it works for them.
Below are detailed steps and Q&A about what you’ll learn in this post:
1. How to create a TikTok Shop account?
2. How to list the same Amazon product on TikTok Shop?
3. How to get sales on TikTok Shop?
4. TikTok Shop fees?
5. How products will be delivered to TikTok customers from Amazon?
6. Will TikTok be banned in the US?
1, Creating a TikTok Shop account:
You can create a TikTok account with your company details and with SSN for the US. Note that SSN is required for TikTok Shop in the US. TikTok Shop has no monthly fee like Amazon’s $39.99 for the professional plan a month. You can create an account for totally free.
2, Listing:
You can copy your Amazon listing and create it on TikTok Shop the same way with your UPC or GTIN. Copy the listing from Amazon and upload it on TikTok; you don’t need to create new images, new listing writing, or purchase new UPC-like stuff.
3, How to Get Sales:
There are three ways to get sales:
a) organically, b) paid ads, and c) through creators.
We choose the affiliate creator option mostly because it’s a much cheaper option. TikTok has created an affiliate section in the seller account where both the seller and the creator can collaborate for free. You can contact creators and offer them a percentage on each sale, and they will make videos of your product and promote it. Creators will get a commission on each sale they make. In this way, both parties are profitable. You have to give free samples to creators to create videos of your product. The interesting thing is that you have to pay the creator a commission only once they make a sale; if they do not make any sales, there is no commission.
Affiliates are the best and cheapest way to get sales, as you don’t have to pay them anything until you get sales. For paid ads, you have to run ads on TikTok, which are cheaper compared to Amazon. For organic sales, you have to set keywords in your listing, and there are higher chances you will get organic sales as well, just like on Amazon.
4, TikTok Shop fees?
TikTok Shop charges a 6% referral fee plus $0.30 on each order. For example, if your product selling price is $20, TikTok will charge 6% of $20 + $0.30, totaling $1.5 In comparison, Amazon’s referral fee is 15%, meaning you would pay $3 for $20 sales. TikTok has no monthly fee, whether you’re an individual seller or a company account.
5, How products will be delivered to TikTok customers from Amazon?
For sellers doing FBA, Amazon offers a program called “MCF (Multi-Channel Fulfillment).” In this program, sellers can send their orders to outside platforms like Shopify, TikTok, or eBay from Amazon. Amazon picks the order from its warehouse inventory and ships it to the customer outside, charging you a shipping fee. Amazon gives you the option to ship with blank packaging or Amazon packaging. If you choose blank packaging, Amazon delivers in unbranded packaging or in courier packaging.
NOTE: Please keep in mind that MCF is not reliable for the long term because Amazon’s MCF charges are also high compared to the market, but it’s the best option to test your product on TikTok Shop. If your product succeeds on TikTok, you’ll deliver initial orders through Amazon, and for the long term, you’ll get stock from your supplier at your home or use any third-party 3PL warehouse services.
If any seller is doing FBM and has all product stock at their house or warehouse, they can choose the platform shipping option from TikTok Shop. Once they receive an order, they can generate the label from TikTok Seller Central and ship it. TikTok also offers FBT (Fulfillment by TikTok) as FBA, but this option is not available for all sellers; mostly, TikTok shows this option to those accounts with a good sales velocity. If you have your warehouse and are already doing FBM stuff, TikTok is very convenient for you.
6, Will TikTok be banned in the US?
As we are all aware of the conflict between TikTok and the US government, a bill has also been passed. Yes, the bill is passed on, but according to this, TikTok has 270 days to change the CEO to a US resident, or TikTok will be banned in the US. It’s highly possible TikTok will agree to US policies and may change the CEO because their most earned and established market is the US. They have a lot of investment there and are still investing more in TikTok Shop. There is a higher chance it will occur. But in case TikTok is banned, which would be Jan. 15, 2025. In addition, the law gives the U.S. president the ability to grant a one-time extension of “not more than 90 days” if the president determines that ByteDance has a legitimate sales negotiation in progress to sell its TikTok stake. That would make the sell-or-ban date April 19, 2025.
Incase of ban, We all still have 7-10 months to play and earn.
I am not encouraging new investors to invest a lot in TikTok Shop, but I highly encourage sellers who are already selling on another platform and already have products with stock to try it because they can do it without any investment. But if it is not banned after January 2025 and they also don’t start right now, they will only have the regret option because at that time, competition will increase a lot, and it will be difficult to establish. TikTok is increasing its features and services day by day in the US. If there are higher chances of a ban, why is it investing more? Also, TikTok has the highest investment in the US, so there are higher chances they will not leave like this; they will definitely agree with US policies. So if anybody is not starting TikTok Shop due to this issue, they should not do this.
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