Comprehensive Analysis Of TikTok Shop Mall Operation Model

1. Content e-commerce and shelf e-commerce

TikTokShop's self-operation model is a diversified business model composed of content e-commerce and shelf e-commerce, which can efficiently link users.

Content e-commerce solutions mainly stimulate user needs through live broadcasts and short videos, that is, "finding people for goods". They can develop collaboratively across multiple genres, fully reach users, and stimulate users' shopping needs.

Among them, live broadcast is a comprehensive operation scenario that achieves multiple business goals. It can intensively convey selling points, interact in real time, and complete high turnover in a short period of time; short video has a relatively vertical and single content focus, which can reach users in batches and conduct Daily product planting and continuous expansion of influence.

Content e-commerce is also generating new shopping needs. From TikTok’s insights into users’ shopping behavior, it can be found that consumers place orders 1.5 times faster after discovering products on TikTok Shop than on other platforms. Their motivation to explore and willingness to share Also stronger.

Starting from February 2023, the TikTok Shop mall will be officially launched in Thailand, the Philippines, Malaysia, and Vietnam. The mall entrance is located on the right side of the TikTok homepage. The site is centered on product classification and centralized presentation, and uses multiple touch points to help users achieve active shopping behavior. The goal is that the shelf model can help traditional e-commerce sellers copy the shelf operation experience in a more targeted manner and achieve rapid entry into the market.

Figure: In-site shelf e-commerce solution

TikTok Shop mall scene introduction:

The order link from traffic acquisition to transaction:

Recommended product selections in TikTok Shop: clothing, shoes, bags and accessories, large home furnishings, 3C digital home appliances, and beauty and FMCG products.

Merchants can go to "Seller Center > Products > Opportunity Center" to select products. The Opportunity Center will recommend external products, and merchants can choose suitable products to upload to the store.

2. How to improve transaction conversion?

Good products + good prices + good services are the secret to improving transaction conversion. Sellers can improve conversion from the following perspectives:

·Potential product selection: best-selling products on other platforms, high-quality products suitable for shelf e-commerce, and products with excellent performance in TikTok Shop.

· Product richness: Products uploaded in the TikTok Shop backend will be automatically copied to the mall. Currently, the platform supports single product upload, Excel and third-party ERP batch product upload.

·Product information quality: The title contains key information such as product name, brand, category, model, etc. The main image clearly displays the product, and the details page contains basic necessary information for purchasing the product.

Figure: Product quality information quality requirements

· Product price competitiveness: Set competitive prices to encourage users to place orders, and use marketing tools such as single product discounts, flash sales, and multi-buy discounts.

·Product and service quality indicators: negative review rate, delayed fulfillment rate, commercial liability cancellation rate, and store violation points.

Under content e-commerce and shelf e-commerce, merchants should also focus on the following key operational actions and indicators of live broadcasts, short videos, celebrities, and malls.

· Live broadcast: The live broadcast room is an efficient scene that guides interaction and orders. It requires diligent and stable start-up. Find the core of the live broadcast room and optimize the indicators. Refer to the high-quality cases of peers to optimize the live broadcast room anchor/product/scenario, and focus on click-through rate and conversion. rate, length of stay, and site views.

·Short video: Short video can undertake various purposes such as planting grass to attract traffic to live broadcasts/stores, direct conversions, etc. It is also necessary to maintain diligence in video publishing and continuously optimize the quality of video content. You can also find creative inspiration through short video popular lists. We should focus on controlling the completion rate, forwarding rate, like rate and comment rate.

· Experts: Select suitable experts, establish relationships with them, achieve multi-dimensional long-term cooperation with them, establish a long-term cooperation mechanism with them, and focus on the content output data of the cooperating experts.

·Mall: Improve product richness and price competitiveness, continuously optimize product main image titles and other information, and improve user experience. Focus on optimization in search/recommendation and other scenarios, and focus on the process, clicks, and conversions of each scenario in the mall.

3. One-stop solution provided by TikTok Shop

1. Official operation support system

Settled in incubation classes, official cross-border community, high-potential training classes, and guidance from industry managers.

2. Content service system

·Merchant – Institutional Matching: Matching based on merchant characteristics and TSP operation direction; 1V1 to help merchants and TSP reach agency operation cooperation; assess the TSP side's submission volume, launch rate, etc., to achieve GMV output.

·Global content service ecology—talent alliance; cross-border institutions/talents; overseas institutions/talents.

3. Logistics official support

Platform small package + overseas warehouse; domestic direct mail official logistics, overseas warehouse merchants self-delivery, overseas certified warehouse self-delivery, no threshold collection for the first trip, no threshold door-to-door collection has covered 18 major cities in East and South China; COD function Already online.

4. Settlement and payment plan

·Convenient merchant settlement: Payoneer is supported; the settlement cycle in Thailand is post-sales completion + 1 day settlement (post-sale completion refers to orders that have passed 7 natural days of post-sales and have no after-sales in transit, or orders that have been fully completed after sales); Vietnam/ The settlement cycle in Malaysia/Philippines is the completion of the post-sales period + 1-day settlement (orders that have passed 6 calendar days of the post-sale period and have no after-sales service in progress, or all after-sales service orders have been completed).

·Localized consumer payment methods: credit card/bank transfer/e-wallet

·COD cash on delivery: Buyers do not need to pay when placing an order. They can pay in cash on site when signing for the package. Cash on delivery is supported in Malaysia, the Philippines, Thailand and Vietnam. Merchants can set up COD by "manage store products > batch edit products > turn on the cash on delivery function in Excel > it will be activated after uploading."

5. Important rights and interests for cross-border stores

·Multiple inventories for one product (one product with multiple warehouses): Merchants can set up domestic warehouses and overseas warehouse delivery inventories for the same product at the same time based on actual business needs.

How to set up multiple warehouses for one product?

Step 1: Create global products and enter the warehouse and inventory module.

Step2: Click the product quantity to view and edit the inventory of each product.

·One store selling Southeast Asia: Support sellers’ global products to be distributed to multiple countries in the same content (live broadcast or short video), and users in multiple countries can place orders for purchase.

How to set up a store to sell Southeast Asia?

Step 1: Create global products and publish them to stores in all countries where you want to sell them

Step 2: Bind global products to live broadcast rooms/windows/short videos.

4. Business cases

1. High-quality content to acquire new users of global ethnic costumes

A certain clothing merchant's order volume increased by 419% year-on-year from July to August 2023, and its GMV increased by 218% year-on-year. The improvement of transaction conversion is mainly achieved through the following three points:

·Accurate matching mechanism: By shooting high-quality content such as live broadcasts and short videos that conform to local customs, combined with short video payment testing, live broadcast room advertising testing and other methods, we will continuously adjust the accuracy of the covered population and gradually expand user coverage.

·Multi-market layout: Actively establish alliances with overseas experts to test products and accumulate orders from the Southeast Asian market for the store.

·Sales in 5 countries in Southeast Asia: broadcast for at least 8 hours every day. With the help of global sales, English live broadcast rooms are simultaneously distributed to Malaysia, Philippines, Singapore and other countries, achieving multi-country distribution of content and acquiring new users in various countries with low cost and high efficiency.

2. Overseas brands create new e-commerce paths for makeup content

From May to August 2023, a certain beauty merchant's month-on-month growth exceeded 300%, which was mainly achieved through the following three methods:

·Localization of brand selection: Based on the differences in skin color, temperature, culture, etc. in Southeast Asian countries, localized cosmetics products are launched in various markets to provide users with personalized products and promote brand localization.

· Establish an exclusive talent matrix: Based on a large amount of advertising and feedback, and based on the talent’s playback volume, interaction rate, and stability, an talent evaluation system is developed and different types of talent are matched for differentiated content promotion.

·Self-built live broadcast team: Establish a live broadcast team that includes four major functions: anchor, operation, live broadcast control and pitcher, with full links and in-depth coverage of all aspects of content e-commerce operations.

3. Content creates new consumption scenarios for 3C digital

A certain 3C merchant's sales increased by more than 200% month-on-month in June 2023, and orders were issued stably after the account was successfully cold-started. The merchant’s perspective of bringing goods is:

·Photograph the product from the user's first perspective and combine it with the anchor's oral broadcast to highlight the core selling points of the product.

·The anchor shows the product features to users through objective data.

·Repeatedly explain the product selling points and guide users to click on the trailer to place an order.

·Buy one (smart watch) and get seven free (straps, cleaning pens, cleaning cloths and other peripheral products) to attract users to place orders and increase conversions.

5. TikTok Shop’s key cross-border investment directions in Southeast Asia

·Recruitment of non-standard categories: women's clothing, women's bags, women's shoes; fashion accessories, sports and outdoor; men's clothing, children's clothing; toys & collections, all kinds of novelties, etc.

·Investment in standard categories: beauty and personal care, home life, mobile phone and tablet accessories, computer accessories, audio equipment, household appliances, maternal and infant, automobile and motorcycle parts, food and health care, etc.

6. Store opening benefits for new sellers

1. Opening a store is worry-free

·The deposit for a new store is as low as US$90.

·New merchants can enjoy commissions as low as 0 yuan when their stores complete designated tasks. Starting from August 11, stores operating in Malaysia can enjoy commissions as low as 0 yuan for mall orders; new merchants who open a Philippine store and complete the task of uploading 10 products can enjoy commissions as low as 0 yuan for orders generated in the first 90 days.

·One set of registration information can directly open stores in 4 countries (Philippines, Malaysia, Vietnam, and Thailand).

2. Worry-free operation

·Official learning tutorials are free to use. New merchants who join the official cross-border circle after settling in will receive official learning white papers and regular training for official personnel.

·Free tools are available upon opening the store. New sellers can use Miaoshou ERP, Keyouyun and other tools for free to help you quickly put products on the shelves in batches. Up to 5 stores are free forever.

·Free shipping for the first 15 orders. For new merchants who have settled in from July to September 2023 and have not yet sold 15 orders, buyers will be able to receive corresponding freight coupons in short videos, live broadcast rooms and windows; freight reductions and exemptions will automatically take effect when consumers use the freight coupons to complete order payment.

·Up to 280 product discount coupons, and then divide up 420,000 product coupons.

New merchant task incentives: New cross-border merchants in Southeast Asia who will settle in from July to September 2023 can log in to the merchant backend > Growth Center > My Tasks. After completing the designated tasks, they can receive a corresponding number of product discount coupons, up to 280.

Growth task incentives: For all cross-border stores in Southeast Asia with a store's historical cumulative order volume of 1-300 orders, merchants who complete designated tasks such as launching broadcasts, publishing short videos, and public plans can share 420,000 commodity coupons.

·Efficient logistics and stable contract fulfillment, and you can enjoy ultra-low discounts when entering the warehouse. New merchants who settle in certified warehouses such as Allsome, J&T, Flash, ZTO, and Kerry can enjoy the following benefits: 60 days of free storage fees, which can be extended to 90 days in some warehouses; special discounts, with discounts as low as 50% off in some warehouses ; Commitment to worry-free delivery 24 hours a day on working days, providing stable performance for warehousing merchants.