How to set up a TikTok shop

As of 2024, TikTok is among the top five most-used social media platforms globally, with over 1.58 billion users.

Known for its creative content and fast pace, TikTok appeals to a wide variety of people.

Besides sharing funny stories, trends, news, and dance routines, TikTok also features a shopping function that integrates eCommerce seamlessly into the user experience.

This allows brands and influencers to showcase products directly in their videos, making it easy for viewers to buy items with just a few taps.

These products are hosted on TikTok Shop, the app’s built-in shopping feature, which allows users to pick up a bargain while browsing their favourite content.

According to TikTok’s audience insights, 52% of its weekly users in the UK have expressed an interest in shopping on or from the platform in the coming three months.

So, how do you go about starting a successful TikTok Shop?

What is TikTok Shop?

TikTok Shop is a feature that allows businesses to sell products directly through TikTok, providing an online storefront where users can browse and buy without leaving the app.

It can be used by small, independent businesses run by TikTok’ creators as well as large, established brands.

It can be a good way for businesses to tap into the app's engaged global audience, turning their entertaining content into a shopping experience.

How TikTok Shop works

TikTok Shop offers a seamless shopping experience, allowing people to switch from watching videos to buying items in just a few clicks or taps.

Products can be sold via a number of TikTok features, including:

• live – during live videos, sellers can showcase products in real time, and viewers can buy them by tapping a shopping bag icon
• in-feed videos – sellers can tag products in their videos, making it easy for users to purchase items they see when watching
• shop tab – users can browse and buy products directly from a brand’s TikTok profile under the ‘Shop’ tab.

TikTok takes a commission on each sale – learn more about TikTok Shop commission fees.

Understand the costs associated with TikTok Shop

Setting up a TikTok shop is free, but TikTok charges a 9% commission fee on each sale.

Sellers who meet certain conditions, such as high-volume sellers or those in specific categories, may qualify for lower rates.

Besides commission fees, a number of other costs may be associated with opening a TikTok shop.

These include payment processing fees, shipping, and targeted advertising costs if you’re using paid-for TikTok ads.

You may also have other business costs, such as inventory, packaging materials, and overheads, such as energy bills.

What are the benefits of running a TikTok shop?

Opening a TikTok shop offers several benefits for your business.

• convenience – your target customers are already engaged with the app, potentially making it easier to direct them to your products
• large user base – with UK TikTok users expected to reach 15 million by 2025, the potential audience is large
• dynamic marketing – TikTok allows you to create engaging, creative content that showcases your branding and products
• real-time engagement – the platform’s fast-paced environment allows your audience to engage with your business in real-time, enhancing brand awareness and trust.

Discover more about how to make social media work for your small business.

What you need to get started

As with any online eCommerce business, there are several things to consider before you can launch.
Think about the products you want to offer.

It may be a good idea to choose niche products that suit the platform's user base and meet the needs of your target market, for example.

Deciding on the right products and creating effective content can be challenging if you don't fully understand your target audience – find out how to determine your target market.

You may also want to analyse the demand for the products you want to sell using tools such as Google Trends or TikTok's Discover page.

How to set up a TikTok shop

Step 1 – Create a TikTok business account

You will need to set up a business TikTok account – this is free on TikTok.com.

This is because a personal account does not give you access to the Shop tab – a business account allows you to create listings, view analytics, and access advertising options.

If you already have a personal account, you can switch to a business one via Settings.

Step 2 – Apply for TikTok Shop access

Once your business TikTok account is set up, apply for access to TikTok Shop.

You will need to supply a number of details and documents, including a personal ID (driver's licence or passport), proof of business ownership, and proof of residency.

Businesses who wish to use TikTok Shop must follow several guidelines, including being a registered business in the UK and/or Northern Ireland.

You may have to wait for a few days before your application is successful.

Step 3 – Set up your shop

Link your business TikTok account to your TikTok shop.

Choose a compelling name for your shop.

Set up your Seller Profile with business information, links to social media or your website, and your Shop tab – this is where customers can browse and buy your products.

Step 4 – Create your product listings

You're now ready to start listing products.

Consider using high-quality photography, optimised product titles, and compelling product listings to encourage shoppers to buy your products.

Your product listings will be stored in the Seller Centre of your TikTok shop and can be edited at any time.

Offering a variety of shipping options with a reliable courier can make customers more inclined to shop with you.

Step 5 – Establish your order fulfilment process

Although you are selling via TikTok Shop, you are responsible for fulfilling orders.

When a customer makes a purchase, you'll receive a notification from TikTok, which can be viewed in your seller dashboard.

After that, you'll need to package and ship the order.

Once the order is shipped, update the order status in your TikTok shop account and provide the customer with a tracking number, if available.

Consider reaching out to your customer after they receive their order to ensure they are happy with their purchase and answer any questions they may have.

As part of your order fulfilment process, consider providing returns or exchange guidelines for your customers in case they're not satisfied.

Promoting your TikTok shop

There are several ways businesses can increase their online visibility and make their shop stand out from the competition.

You might wish to create engaging, creative content, collaborate with other TikTok accounts, and use hashtags to highlight trends.

You might also want to use an engagement strategy to promote your TikTok shop.

This might include hosting TikTok Lives and responding quickly to comments and questions to improve real-time engagement with your potential customers.

Depending on your marketing budget, you could also consider using paid advertising options.

These include:

• in-feed ads – these are short video ads that appear in the user's 'For You’ feed and can help to increase brand awareness and drive website traffic
• brand takeover ads – these are full-screen ads that appear when a user first opens the app – usage is limited to one advertiser per day, but they may deliver instant visibility and increased brand exposure
• TopView ads – these are similar to brand takeovers, but appear after the app loads and provide prime positioning as well as longer video duration for maximum potential engagement.

Getting the best from your TikTok shop

These tips can help you make the most of your TikTok shop:

• focus on writing exciting and informative product descriptions
• create brand-aligned, memorable content marked with relevant, trending hashtags
• use TikTok SEO best practices to potentially increase visibility
• think about collaborating with influencers whose followers are your target market
• competitively price your products
• respond quickly to customer questions and reviews to encourage engagement
• ensure your customers know their consumer rights.

Building a business using TikTok shop

Running a successful TikTok shop comes with a number of business responsibilities UK entrepreneurs must fulfil.

This includes registering your business with HMRC and Companies House (if you are a limited company or LLP).

Bear in mind that if you sell products or services online for a profit, you will need to be aware of the rules about online selling and pay tax on your profits (unless you make less than £1,000 before expenses in a tax year).

Find out more about tax for self employed people and VAT obligations for online marketplaces.

It could also be a good idea to set up a business bank account connected to your TikTok shop to keep your personal and business finances separate and organised.

When it comes to funding options for your TikTok shop, there are lots to consider, including bank loans, loans from friends and family, crowdfunding, or a business loan such as a Start Up Loan.

Find out more about business funding alternatives.

You may need a business plan to secure funding – learn about how to write one and download our free business plan template.

Start Up Loans is a government-backed scheme that provides personal loans of up to £25,000 to UK entrepreneurs at a fixed interest rate, plus a year of free business mentorship.

Learn more about using TikTok for business

If you'd like to learn more about how your business can make best use of the TikTok platform, read our guides on how to use TikTok for business and how to work with influencers on TikTok.