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How To Get Started On TikTok Shop (Beginner Tutorial)

Introduction

Introduction

In my seven years of e-commerce, I've never seen a gold rush like the one happening right now with TikTok Shop. In this article, I'm going to explain exactly what you need to do to start on TikTok Shop, how to start selling, what the logistics look like, and break it down for you step by step. To convey the gravity of this opportunity, I've done about $ 20-$ 25 million in sales throughout my e-commerce career, and I think I'll do that much in the next 18 months primarily through TikTok Shop. I'm launching multiple brands and have $ 3.5 million worth of inventory for one product sitting in a warehouse in Florida that we're moving just through TikTok Shop. We're taking it very seriously, so I have a lot of stuff I want to walk you through here.

Setting Up Your TikTok Shop

Personal Information vs. LLC

There are still a lot of misconceptions around setting up a TikTok Shop. When you are opening your TikTok Shop, you will want to use personal information, although you can use an LLC. However, the LLC is still backed by personal information. That means it's going to ask for your name, your personal address, and the last four digits of your Social Security number.

Approval Process

For highest approval odds, it's best to use personal information. If you want to make multiple TikTok Shops, you can use LLCs but note that these LLCs are often disabled initially, and you have to go through an appeal process to get them back. If you get disapproved for a second or third TikTok Shop, you can use the following crafted message for the appeal:

"Hey guys, the reason I'm opening the second TikTok Shop is for a different product for a different e-commerce brand. It can't be on the same shop. I provided accurate information. Please let me know if there's anything else you need to verify this."

Where to Operate

You need to be based in the US, or someone you're working with needs to be based in the US. You can only have one shop per LLC.

Linking TikTok Page

When linking your TikTok page, verify the TikTok page through the TikTok Shop settings, not the general account settings.

Completing the Setup

Once you've opened your shop, you'll need to:

  • Complete the tax information.
  • Set up the shipping.
  • Create your product listings.
  • Link your TikTok page.

Make sure to be detailed in your product listings and to verify your TikTok page correctly.

Rules and Regulations

Three-Day Scan-in with USPS

TikTok Shop has stringent rules, such as a three-day scan-in requirement for USPS. Ensure that your products are out the door by day one or two, not on day three.

Feedback Score

Your feedback score significantly impacts the health of your shop. Keep up with your account health metrics.

24-Hour Response Rate

You need to respond to any customer messages within 24 hours, a requirement that can dramatically affect your shop's performance.

Starting to Sell

Working with Creators

Don't send samples to everyone. Be selective based on the stats of each creator. Consider their past performance and audience size. Creators need to post within a certain timeline, or they risk getting kicked off TikTok Shop.

Number of Samples

The number of samples you should send depends on your inventory and how quickly you want to scale. A good starting point is 20-30 samples a day, scaling up as necessary.

Unexpected Issues

Expect issues with fulfillment as your shop scales. Drop shipping through TikTok Shop can be challenging, and you may face cash flow issues as payouts are delayed until two weeks after product delivery.

Overcoming Cash Flow Issues

Consider lines of credit or relationships with suppliers who can provide flexible payment terms, such as paying 30% upfront and the rest after delivery.

Conclusion

Understanding these elements can make the difference between success and failure on TikTok Shop. Don't hesitate to reach out if you need help, and good luck on your e-commerce journey!

Keywords

  • E-commerce
  • TikTok Shop
  • Setting up TikTok Shop
  • Personal information
  • LLC
  • Approval Process
  • Linking TikTok Page
  • Shipping Setup
  • Product Listings
  • USPS Scan-in
  • Feedback Score
  • 24-Hour Response Rate
  • Working with Creators
  • Samples
  • Fulfillment Issues
  • Cash Flow

FAQs

Q: What personal information is required to set up a TikTok Shop?

A: You need your name, personal address, and the last four digits of your Social Security number.

Q: Can I use an LLC to set up my TikTok Shop?

A: Yes, but it's often more challenging to get approved, and you may have to go through an appeal process.

Q: How many TikTok Shops can I have per LLC?

A: You can have only one shop per LLC.

Q: What are the key rules and regulations I need to be aware of?

A: Key rules include a three-day scan-in requirement with USPS, maintaining a good feedback score, and a 24-hour response rate to customer messages.

Q: How many samples should I send out initially?

A: It depends on your inventory and scaling ambitions, but a good starting point is sending 20-30 samples per day.

Q: What should I do if I face cash flow issues?

A: Consider lines of credit or working with suppliers who can offer flexible payment terms. You may also seek investment or funding to manage cash flow.

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