The Rise Of TikTok E-commerce In The United States: A New Boom Is Coming

There is no doubt that the expansion of TikTok e-commerce in the United States has brought new prosperity to the domestic TikTok field.

When having dinner with friends in the investment circle a few days ago, he shared that he had witnessed the rapid growth of the target company’s TikTok business, so much so that he also wanted to participate in TikTok’s US e-commerce ranks.

Since September, no less than 20 sellers who used to be an Amazon seller have started asking me for information about TikTok, and most of them have started to apply for a store.

Such prosperity has not been seen in the industry for many years. The last time such a scene dates back to the launch of the Creator Fund in February 2020, the Creator Fund in July, and then the opening of the Indonesian store in February 2021, and later in July Launched in the UK this month.

This time, the market is really hot.

This afternoon, I had a conversation with a big seller, and he agreed with me to share his business methods.

Of course, these are his own experiences. There are many readers with unlimited potential. If you have better operating strategies, please feel free to share them.

The core operating strategy is to let experts promote it.

You can check the sales rankings through the data platform. Products with good sales performance basically have hundreds or even thousands of experts promoting them.

High-quality celebrity promotion videos can be used for placement.

How to find experts?

Most people will form their own expert BD team and search for them one by one.

In addition, the official AM will also recommend products with potential. Their library has established connections with more than 3,000 experts with sales capabilities.

There are also some merchants who will find domestic teams with short video promotion capabilities to promote their products.

Due to settlement restrictions, a 1% commission is usually set in the background, and the remaining portion is settled offline with the team.

However, due to unstable traffic, there are fewer and fewer teams dedicated to traffic.

What many businesses are most concerned about is the issue of store closures.

On the morning of the 31st, a large number of small American stores were blocked due to virtual warehouse delivery issues.

The issue of store closures is essentially a question of whether merchants are willing to stock goods locally.

Based on the experience in Southeast Asia, due to the nature of TikTok content e-commerce, merchants and traffic teams do not dare to bear the risk of slow sales.

How does everyone deliver goods now?

1. Virtual overseas warehouse.

This is actually a direct domestic shipment, but the logistics track only shows the US section, not the China section. The logistics information seen by the platform and customers will assume that it is shipped from the United States.

2. The upgraded version is the virtual cloud warehouse.

Domestic merchants centrally send the goods to designated domestic warehouses. After the order arrives, Cloud Warehouse is responsible for packaging. It will be sent to the airport that evening, take the earliest flight to the U.S. warehouse, and scan the QR code for delivery after landing.

Of course, either way, the platform can discover through order fulfillment.

Nowadays, logistics providers have also begun to support air transport of small batches to warehouses in the United States, and can send 10 or 50 pieces.

The local warehouse will help you drop ship another item, and the service provider will settle the accounts with me. Many products cost less than shipping from an FBA warehouse.

In order to help merchants, TikTok has provided FBT logistics services in the UK, which is called "Fulfilled By TikTok"

Sellers only need to send product inventory to TikTok's warehouse, and the platform provides goods warehousing.

When a buyer places an order, TikTok will be responsible for subsequent operations such as product sorting and packaging, shipping and delivery, returns and after-sales service.

It is estimated that such services will be provided in the US market later.

In addition to the issue of local stocking, the second concern is product testing.

Most of the time when testing products, we use the risk-death team store.

The cost is less than 1,000 yuan through the store purchased. If the product test is successful, it will be shipped from the virtual warehouse.

An even more drastic operation is not to deliver goods. If the store dies, it will die. Anyway, the purpose of product testing has been achieved.

In addition, there are many novice sellers who encounter difficulties in applying for a store.

My personal suggestion is that no matter what, open a store first to test the waters, and don’t let yourself fall behind others.