You’ve seen the articles, TikTok shop is growing and is almost the size of Ebay, but success starts with the right foundation.

TikTok allows brands to reach new customers through it’s discovery first platform and it isn’t always the biggest brands that succeed, but the ones that understand how the platform works, are open to taking risks while setting up a sound operational foundation.

From what we know today (as the world of social commerce is quickly changing), we wanted to share what you should keep in mind as a brand getting started on TikTok Shop.

How to Think About Readiness:

This is not a pass/fail, but a framework to help you think about:

• What’s required to launch

• What accelerates results

• Where brands typically need help

One: Product Viability for TikTok Shop

TikTok rewards brands:

• That solve a clear problem

• Fulfill a strong desire (marketing 101)

• Have products that can be easily demonstrated

• Margins that can support creator commissions, fees and promotions

Being a “big” brand does not always guarantee success and being a “small” brand does not mean you should not invest in TikTok shop. Having previous DTC experience will be helpful, but also not necessary if you have a strong operational plan!

Two: Operational Readiness

This is one of the most important parts of setting up TikTok shop and you want to be ready with:

• Clear fulfillment system including inventory visibility

• Ability to send samples (quickly)

• Have clear SKU data, pricing and compliance documents ready to go!

Brands can sometimes underestimate the sudden volume spikes and slow fulfillment and unclear logistics will effect your growth, performance, customer service and shop score.

Pro Tip: consider TikTok shop fulfillment

Three: TikTok Shop Setup & Eligibility

Don’t get discouraged if you don’t get set up the first time on TikTok shop, it’s a process. You need to ensure you are ready with:

• A verified business entity

• Tax & bank information

• Ensure products are eligible under the stores policies

Once set up, shops also need active management - not just a set it and forget it situation.

Four: Creator & Affiliate Readiness

Creators are the growth engine behind TikTok shop and although you want to support with clear guidelines, brands that allow creators to be creative will see the impact!

Brands should be ready to:

• Offer competitive commissions

• Openness to creator led story telling over polished looks

• Test and learn with creator strategies including recruiting creators, guiding messages and approvals

It’s nice to have some UCG and/or short form content already in place, but the great thing about TikTok shop is the creator program can help drive sales!

Five: Team & Financial Readiness

Brands going into TikTok shop should:

• Have a test & learn mindset

• Align on clear costs including commissions, sampling, fulfillment and and testing budgets.

• Align on either an internal team member who can manage daily operations or a willingness to outsource to a trusted brand.

Although there are many brands growing quickly on TikTok shop, brands should understand it’s still in a test and learn channel - not guaranteed growth from day one.

Not Ready Yet? That’s Normal.

Most brands don’t start TikTok shop fully prepared (especially with so many changes), but the right setup, strategy and support can make TikTok a powerful growth channel for your brand.

If you are curious to chat through the readiness assessment, learn more about what we do or just stay in touch - reach out below!