The Ultimate TikTok Shop Report for Brands and Businesses

By Editorial Staff

TikTok fosters the roots of the creator economy with the help of creators and innovative influencers. TikTok has stated that 60% of their users discover new products they love through the platform. As TikTok continues to trailblaze within the influencer marketing world, marketers and influencers alike have to learn about TikTok’s shop. The TikTok Shop launched on September 12th in the United States and has since been a hotbed for ecommerce activity. Keep scrolling to see our TikTok Shop Report!

Key Features in the TikTok Shop

The shop is projected to reach over $60 billion in global sales thanks to its robust shopping experience. This TikTok Shop report intends to analyze how brands can develop and develop effective shoppable campaigns. Here are some of the TikTok Shop’s key features:

  • Shoppable video tags to spark new viral products and trends.
  • In-feed product listings.
  • Informative product descriptions to persuade consumers to buy.
  • Muti-media galleries for interested consumers.
  • Native checkouts and seller verification systems to prevent scams and build trust.
  • Analytics on views, clicks, and conversations.

What Is the TikTok Shop’s Business Model?

So, how does TikTok’s shop work for businesses?

TikTok earns a commission percentage on every transaction in the shop. Commission rates are usually 5% but can fluctuate based on the product’s category and region, so be sure to do research prior to listing branded products. In addition, TikTok will scale shoppable video content, so merchant commissions become primary revenue drivers. However, products sold through livestreams will have a small cut taken for TikTok. TikTok will take a cut of virtual gifting revenue generated during streams.

For creator sponsorships, TikTok also takes a cut of the sponsorships when brands partner with their favorite influencers. These fees are recycled back into TikTok’s Shop to facilitate the partnership.

Download our TikTok Shop Report to Learn More!

The TikTok Shop will become the driving force of e-commerce and live shopping streams, so brands and marketers must know the ins and outs. For more information, check out our NeoReach TikTok Shop Report. You can also download the report here!

TikTok Shop (1)

This article was written by Brianna Borik

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