AFFILIATE MARKETING
How to Sell on TikTok Shop
- TikTok is investing heavily into e-commerce with its TikTok Shop program.
- The company is offering perks to both sellers and creators who join.
- Here’s a 9-page document breaking down how to get started and earn money on Shop.
TikTok is investing heavily into e-commerce with its TikTok Shop program, and it’s offering perks to brands and creators who join.
Getting started on TikTok Shop as a seller is simple. Brands and small businesses need to apply on the TikTok Seller Center portal, and upload documents for verification. The feature has been available in the US since November 2022.
The primary way creators and brands can help each other boost sales is through affiliate marketing. Brands give a percentage of each sale to creators for promoting the brand’s products. Sellers set their own commission rates, which usually range between 5% and 20%, according to creators and a TikTok exec.
Read about what TikTok Shop can offer brands, according to an exec who spearheads the program
How to start a TikTok Shop as a seller
Brands can join TikTok Shop by applying on the platform’s website.
Once they are accepted to the program, they can set up their own product showcase on their TikTok profile, as well as pay creators a commission to promote items through affiliate marketing. They set their own commission, and they can choose between three affiliate plans:
- “Shop” plan, with the same commission rate for all products;
- “Open” plan, with select products and varying commission rates;
- “Targeted” plan, which allows merchants to choose the creators they want to partner with.
Merchants have access to a Seller Center App that lets them manage their shop, inventory, orders, promotions, collaborations with creators, and customer service. Sellers can also integrate third-party e-commerce platforms, like Shopify, Square, Ecwid, and BigCommerce.
Is TikTok Shop free for sellers? You can register for free as a seller, and TikTok currently takes a 5% commission fee from merchants — the same as Instagram’s selling fee and lower than Amazon’s typical 8% to 15% commission rate.
What TikTok Shop offers sellers
As TikTok worked to woo merchants, it began offering perks such as free shipping and discounts for new sellers.
Read about how TikTok subsidizes shipping and hawks 30% discounts as it races to onboard US sellers
Some independent sellers told Insider that Shop has been lucrative for them. One creator who signed up to sell his independently published books on TikTok was able to quit his job as a nurse and focus on writing full time.
Check out how Adam Beswick used TikTok Shop to become a full-time author
Not all brands are on board with Shop, though, and getting blue-chip corporations to start selling on the app has been particularly difficult, Insider reported.
Read more about what the company is pitching to marketers to get them onto Shop
The company has plans to not only onboard third-party merchants, but also to start selling items directly. It’s already launched a product page with this aim in the UK, “Trendy Beat,” and reportedly has plans to emulate this strategy in the US.
Job openings on TikTok’s website also appear to be recruiting a team tasked with boosting sales of pre-owned luxury items like bags and collectibles such as sneakers.
How to start earning money as a creator
Creators can apply to start selling on Shop when they meet the platform’s community guidelines and three criteria:
- be at least 18 years old;
- have 1,000 followers;
- have posted a video in the previous 28 days.
Creators (and brands) have three ways to sell on TikTok Shop, according to a document the company shared during a recent web summit:
- Livestreaming: creators can go live on the platform and promote products to their viewers;
- Shoppable videos: creators can link to products on the videos that they publish on the profile;
- Product showcases: creators can list their favorite products in a dedicated showcase at the top of their profile.
On TikTok Shop, creators earn money through affiliate commissions. When they advertise a product in their content, they receive a cut of the sales they generate.
TikTok has also been offering creators bonuses, perks, and different types of exclusive programs to get them to use Shop.
Check out the perks TikTok is offering to woo creators to use Shop
AFFILIATE MARKETING
How to Grow a Business: Yum! Brands Co-Founder David Novak
As the co-founder and former CEO of Yum! Brands, one of the world’s largest restaurant companies with a portfolio including franchises like KFC and Pizza Hut, David Novak drove tangible results.
In the 17 years he was CEO, from 1999 to 2016, Novak helped scale the company to eight times its original size, from a market capitalization of $4 billion to $32 billion. However, Novak credits the numbers to a more qualitative than quantitative aspect of leadership — creating the right work culture.
In a conversation with Masters of Scale host Jeff Berman that aired earlier this month, Novak explained how he steered Yum! Brands from the beginning.
“I made my number one priority to really create a powerful culture where everyone counts,” Novak said. “That became job number one for me as a CEO, because if I can create that right work environment, people will innovate and people will go further.”
Novak explained that early on, he tried to learn from companies that were winning or consistently delivered good results. He went out and visited companies including Walmart, Home Depot, and General Electric.
“We met with them,” Novak said. “Then we came back and we codified what’s really driving the success of these companies that allow them to get to great results year after year.”
Novak, who oversaw 1.5 million employees globally, began emphasizing recognition and encoding it into Yum!’s culture. In previous interviews, he talked about how he would use recognition to motivate employees. In one case, at KFC, Novak gave away rubber chickens and $100 as an award for a job well done.
Today, Yum!’s culture remains one of recognition and collaboration, per its public-facing culture page.
AFFILIATE MARKETING
Amazon CEO Mandates Employees Return to Office 5 Days a Week
Amazon CEO Andy Jassy made a case — and a mandate — for in-office work on Monday.
In a publicly available message, Jassy said that Amazon’s 1.5 million-plus employees must return to the office five days per week starting January 2. Amazon is also bringing back desk assignments to the offices that had that structure pre-pandemic.
Jassy positioned the move as a better way to work and a return to life before Covid.
“We’ve observed that it’s easier for our teammates to learn, model, practice, and strengthen our culture; collaborating, brainstorming, and inventing are simpler and more effective; teaching and learning from one another are more seamless; and, teams tend to be better connected to one another,” Jassy stated.
Amazon CEO Andy Jassy. Photo by Michael M. Santiago/Getty Images
Jassy also said that situations that require remote work like sickness, an emergency, or being on the road are still acceptable.
However, these examples of remote work are the exception to the new rule, not the norm.
Amazon employees have been back in the office at least three days per week as of February 2023. A July report from Bamboo HR showed that one in four executives secretly hoped employees would quit over stricter return-to-office policies.
“Strengthening our culture remains a top priority for the s-team [senior leadership team] and me. And, I think about it all the time,” he wrote. “We want to operate like the world’s largest startup.”
Under the new policy, working from home two days per week is no more. The office culture is returning to how it was before the pandemic, to strengthen work culture and drive better results, Jassy explained.
Related: Dell Reportedly Told Remote Employees to Come Back to the Office or Forgo the Chance to Be Promoted
Amazon joins companies like Salesforce and Walmart that have implemented stricter return-to-work policies.
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Prepare to Land a Position in IT With This CompTIA Training Bundle
Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.
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