TikTok most useful and famous software around the world today time. Every age of people uses this software. Therefore, this social networking channel quickly exploited the online shopping function to meet the online shopping needs of many users. Buy TikTok Followers Malaysia with BuyIGFollowersMalaysia get high quality services.
What is Tiktok Shop?
Tiktok Shop is a new feature of the TikTok application. You can imagine TikTok as a social networking channel for young people, and also a large online e-commerce site.
At Tiktok Shop, any user can build their brand and do business directly with a variety of customers. Not only that, you also have the opportunity to experience different types of advertising, thereby easily obtaining potential customers.
Evaluate the pros and cons of Tiktok Shop
Advantage
Possessing a young user base with a tendency to shop online
The user base on Tiktok mainly ranges from 12 to 40 years old. It can be seen that this is an age group with high shopping needs as well as the ability to quickly adapt to new social trends.
Users now have the habit of shopping and paying online, paying more attention to reputable reviews from real users. This group of customers is especially interested in images, videos, and livestreams.
Focus on content creation to increase competition between shops
The Tiktok Shop algorithm will prioritize distributing content from users who create quality videos with the most views. Unlike other commercial channels that use data about user behavior and personality to distribute content, Tiktok Shop does the opposite. They will provide a trial of the content for a certain number of users to watch and give preliminary reviews.
If this group of users responds positively, the content will continue to expand to other audience files. This algorithm has important implications for new sellers.
High conversion rate
TikTok Shop's business model is based on video content. The nature of videos often brings many emotions to people, urging them to generate needs. Thanks to that, it can help the shop explode with hundreds, thousands of orders in just one day. BuyIGFollowersMalaysia always best options for social media promotions
Disadvantages
Business shops need to focus on investing in video content to bring new, unique perspectives that excite users.
Video content needs to be suitable for the target audience, have a clear direction, and carry the shop's unique color.
How does Tiktok Shop operate?
For sellers: Required to register a business account on Tiktok Shop.
For advertisers: Usually KOLs, influencers register to be Affiliates - a form of affiliate marketing for Tiktok. The prerequisite for advertisers is to reach at least 100,000 followers.
For platform fees: Tiktok Shop only charges fees for successful orders. The fee in the US/UK market is 5%/order. In Malaysia, it is about 10%/order. The fee will be adjusted gradually over time.
Product posting regulations: Each product is posted in the seller's shop, with a detailed description and related images/videos.
Payment regulations: The platform does not open a COD payment feature, so customers need to pay in advance.
Shipping regulations: Tiktok Shop's shipping partners are responsible for going to the shop's warehouse to pick up the goods and deliver them to the buyer.
Instructions for registering a TikTok Shop account
Step 1: Access the link https://seller-ml.tiktok.com/account/register to create a Tiktok Shop account.
Step 2: Click on “Register for a TikTok account” or “Register by phone & email”.
Step 3: Click “Authorize”.
Step 4: Then you need to fill in all required information and click "Continue".
Step 5: Click “Start selling” and proceed to enter product data into the newly registered TikTok Shop account.
3 popular business models on TikTok Shop
Affiliate: This is a business model that is very familiar to many people, especially KOLs, and influencers... With this form, you only need to create content related to the product and attach a referral link to receive attractive commissions if customers visit and buy through that link. The commission rate depends on the type of product you choose, ranging from 5 - 30%. When doing Affiliate, you do not need to actively import inventory, instead focus on producing quality content.
Dropship, OEM model…: Can be understood as a business model but does not require importing products to the warehouse. At this time, you only need to build a store, create your brand and sell products. The packaging and shipping process to customers will be done by a third party cooperating with you. This model has low costs and high profits.
Wholesale model: This business model requires you to import goods to the warehouse and plan your purchases and packaging. The advantages of this model are high costs, high risks, stable profits, and the ability to expand the brand in the future.
