Using TikTok Shop To Increase Revenue and Drive Sales on the App
Did you know that 55% of consumers have bought products they’ve seen on TikTok? The #TikTokMadeMeBuyIt trend has taken over the app for years, and now TikTok is revolutionizing shopping culture through TikTok Shop, a new feature for users to make purchases directly in the app.
Touted as an opportunity to drive brand growth and sales directly on TikTok, the new feature provides brands, merchants, and creators with the opportunity to create shoppable videos and sell directly to their audiences in a single cart within the app.
As first-time adopters of many new platforms and features, Movers+Shakers has been able to launch TikTok shops with incredible eCommerce partners. We’re sharing with you key insights, findings, and dos and don’ts on how to implement and have success with TikTok Shop.
Understand TikTok Shop
TikTok Shop is a tool that brands can use to showcase and sell products for the TikTok community to discover and purchase with a quick and seamless in-app experience. The feature allows you to browse, select, and add your products to your in-feed videos and LIVE videos to start selling and track performance.
Where can you use TikTok Shop?
LIVE TikTok Posts: Promote, sell, and engage with your audience, all in real-time by tagging the products from your Shop in your live video.
In-Feed Videos: Create entertaining videos with your products just a tap away.
On Your Store Page: Display your product catalog within your own in-app shop.
TikTok Shop Insights:
e.l.f. Cosmetics became the first beauty brand to join TikTok Shop during the beta testing in the U.S., and we gathered some valuable insights by using the feature before it went live to the public. As we tested the feature, we found what worked for e.l.f. and what didn’t. Every brand is different, so don’t shy away from testing, but there are a few major insights we’ve found that can lead to a successful TikTok Shop.
Examples of Shoppable Posts:
Our Biggest Findings
What Works:
Content is key: Creating content that resonates with your audiences and prominently features the product at its forefront gives you the best chance at virality.
Trends help to catapult the shoppable posts onto the FYP. Songs, sounds, filters, etc. that are having a moment on TikTok will help you reach more people organically.
Product launches are a great opportunity to test the feature and increase sales quickly.
Educational posts perform the best, giving shoppers a reason to buy your product.
When we link a TikTok Shop product to a video with a top TikTok-native trend or CapCut viral trend, we saw mega performance wins. For example, our one of first shop posts hit 8 million ORGANIC views!
Using the shoppable feature correctly will land on the FYP more than non-shoppable posts because, at the moment, TikTok favors the TikTok Shop in their algorithm.
What Kinds of Posts Perform Best
Educational posts: Showing how the product works in action provides the user a clear understanding of the product
“X gives you Y”: Show how using the product solves a problem for the consumer. Ex: Using e.l.f.’s primer will give you the perfect base to have your makeup last all day
30-45 second videos: Simplicity and to-the-point videos: The video needs to be clear, straightforward, and valuable
Showing products in use
Utilizing influencers with high CTRs
Additional Tips
Create a CTA that aligns with the post being shoppable. Ex: “Shop now,” “Purchase here,” and “Click our shop to purchase!”
When creating a video use a gif to point to the shop link.
Boost anything that is shoppable. You are not able to make traditional TikTok ads shoppable as they drive traffic to your website.
We do not recommend allowing influencers to post your shop button as you end up paying extremely high commission fees, we recommend using TikTok Shop for your Brand Channels.
What Doesn’t Work:
When thinking about what doesn't work, it is important to consider the purpose of your post and what your goal is. Is it the top, middle, or bottom of the funnel? TikTok Shop is a bottom-of-funnel tactic that can be incredibly valuable, but if your goal is to build brand awareness, it might not be necessary to make that post shoppable.
Making Every Post Shoppable: It comes off as spammy. If your goal is to send consumers to your retail partners (aka stores where they can buy your products) do not make the post shoppable because you decrease the likelihood of them shopping at the partner retailer
Making a Post Shoppable Without an Actual Product in it: TikTok Shop will nick you (addressing points) if you tag incorrectly
Which Posts Can’t Be Shoppable? Photo Mode posts and certain audio and video formats do not allow for shopping
What Happens If You Violate the Policies of TikTok Shop? TikTok has a hefty list of violations, and those violations result in “points.” If you get 48 points, your account will be suspended.
Bottom of Funnel Wins
The launch of TikTok Shop has grown revenue and sales for brands dramatically. Below are some examples of the increases we have seen in revenue by using TikTok Shop without supporting the posts with any paid promotions.
6x revenue growth
6-10x growth in orders
6-10x growth in units sold
Final Thoughts
TikTok Shop is still in its infancy, but the increased revenue numbers brands are seeing is remarkable. Although there is a little work to get it set up and approved, you are giving your customers a seamless shopping experience. No more losing purchases in the transition from TikTok to your website. Additionally, the cart is universal, so when filled with multiple brand’s products, the consumer can check out with a one-cart experience. Our findings are still early days as TikTop Shop has only just been rolled out to the masses, but we anticipate it being wildly successful for your brand.
