Learning TikTok Shop: The Benefits of Social Commerce & What Brands Should Consider

TikTok has become a powerhouse for social commerce, with over 1 billion users and a viral “#TikTokMadeMeBuyIt” trend. As users increasingly turn to TikTok for product discovery, TikTok Shop offers brands a promising new sales channel. This guide answers key questions about leveraging TikTok Shop for your business.

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Expand Brand Sales with TikTok Shop

Ever heard (or even said yourself), “#TikTokMadeMeBuyIt”? Makes sense, considering TikTok now has over 1 billion active users worldwide and 6.7M videos have been created with this trending hashtag.

In fact, consumers are intentionally headed to TikTok to discover new products. Users are more likely to search for a brand or retail account on TikTok than any other platform, and 2 in 3 users say they’ve intentionally shopped for products on the platform.

With this level of influence and sales potential, TikTok Shop has become a powerful business opportunity for brands and merchants. If you’re one of the many brands taking note and considering leveraging the platform as a key sales channel, we’ve broken down the answers to a few of the most frequently asked questions we’ve received about TikTok Shop.

What is TikTok Shop?

TikTok Shop (TTS) is a rapidly rising e-commerce platform integrated within the TikTok app. It allows businesses and creators to showcase, sell, and promote products directly to their audience through in-app shopping experiences. TTS enables brands to create shoppable videos, LIVE shopping streams, a Shop page showcasing their product catalog, and display products on the Shop tab (TikTok’s centralized marketplace) where users purchase products without leaving the app.

TikTok’s highly diverse and engaged audience provides a unique opportunity for brands to drive sales through creative and entertaining content. The goal of TikTok Shop is to continue to stay true to the entertainment aspect of the platform while seamlessly integrating commerce via:

  • Content and creators that influence decision-making
  • New, engaged, ready-to-shop audiences
  • Personalized in-app experiences that boost product discovery and conversion

As a seller on the platform, brands can:

  • Leverage TikTok Shop’s integrated in-app checkout to streamline the buyer journey
  • Invest in TikTok Shop Ads and promotional tools to aid in discovery and conversion
  • Utilize their Affiliate Program to discover and collaborate with thousands of creators
  • Connect your e-commerce store, including Shopify and Amazon, to the TikTok Shop App Store to sync fulfillment solutions and inventory/order/sales data.

What are the benefits of TikTok Shop, and what brands should consider selling there?

TikTok’s unique ability to entertain users, build community, influence niche and mass audiences, and drive product awareness and virality can give brands an opportunity unlike anywhere else.

Benefits of TikTok Shop

  • Shopping Intent: TikTok Shop is beneficial to brands looking to interact and leverage it as a revenue-driving channel with current and new-to-brand audiences. 70% of TikTok users discover new brand and products on TikTok. 83% of users say that TikTok plays a role in their purchase decision.
  • Audience Diversity: Audience diversity is also a huge benefit. A February 2024 study by eMarketer shows that TikTok leads in daily usage across most age groups, outperforming other major social platforms for users up to age 64. This demonstrates its broad appeal beyond just younger audiences.
  • Commerce Impact: While the experience begins in-app, shoppers on the platform are also heading online and in-store to make a product purchase.
    • 48% of users are more likely to discover new products and immediately purchase on TikTok.
    • Over 70% of users are likely to take an off-platform action after viewing a shopping ad on TikTok.
    • 2 in 5 users who discover a product on TikTok head to a physical location that sells the item. 
  • Affiliates and Influence: TikTok Shop enables collaboration with affiliates and influencers through content and TTS’s storefront capabilities. Creators make authentic and relatable content and tag the products being used directly to their videos—giving the audience a portal to purchase from the creators they already trust.

Considerations for Brands on TikTok

  • Price Point: For brands contemplating joining TikTok Shop, price point consideration is key. The platform works best for products under $100 that take less consideration to purchase.
  • Categories: Brands in the following categories tend to trend/sell well on TikTok:
    • Beauty
    • Fashion and Apparel
    • Home Decor and DIY
    • Tech Gadgets and Electronics
    • Health and Fitness
    • Food and Beverage
  • Content: Brands should be sure they have a content plan for their product(s). Without a solid content strategy and quality videos/creators producing content, it will be hard to sell products and build brand legitimacy and loyalty.
  • Approach: Brands should approach TikTok Shop with a full-funnel sales strategy, from brand awareness through conversion. TTS is a great way to connect with and influence consumers, test agile campaigns, promotions, and features like TikTok livestreams, and quickly grasp what does and doesn’t work for your key audience(s). Brands who are in the mindset of leveraging TTS to experiment and learn will reap the biggest rewards.

Questions About TikTok Shop?

Ready to explore TikTok Shop for your brand? Send us an email at hello@harvestgroup.com or connect with us here

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