TikTok Shops is Coming to Australia: Everything You Need To Know!

What are TikTok Shops?

TikTok Shops is TikTok’s relatively new e-commerce feature with the potential to change the game for e-commerce brands. As a platform with massive user engagement and the capability to send products and brands viral, TikTok Shops offers a seamless way for you to sell directly through the app, reaching customers at the moment they’re most engaged with your content.

TikTok Shop operates as a marketplace by connecting brands, creators, and consumers all within the TikTok app. Brands set up shops directly on TikTok, where they can list products that users can browse, interact with, and purchase without leaving the app. Creators often act as affiliates or partners, promoting products through videos and live streams, making it easier for viewers to discover and buy items through entertaining content. This model merges e-commerce with social engagement, creating a unique, content-driven shopping experience.

Why Should You Consider TikTok Shops?

With TikTok’s immense popularity and the ability to integrate shopping directly into the content, this presents a huge opportunity to drive sales and grow your customer base. The feature allows users to discover and purchase products directly through in-app videos and live streams, without needing to leave the platform.

How is TikTok Shops different from other Social commerce?

TikTok Shop differs from Facebook and Instagram Shops in how it integrates shopping with content. TikTok Shop directly embeds product listings into videos and live streams, allowing users to make purchases while watching, creating an immersive “shoppertainment” experience without leaving the app.

Facebook and Instagram Shops in Australia differ from this – users can browse your Facebook/Instagram store, but ultimately they will be directed to purchase from your website.

TikTok Shop Fulfillment Options

TikTok Shop offers several fulfilment options to ensure smooth product delivery:

1. Seller-Managed Fulfillment: Brands or sellers handle inventory, packaging, and shipping directly. This is typical for businesses with established logistics.

2. Third-Party Fulfillment: Sellers partner with TikTok-approved fulfilment centres (eg. Pattern) that manage inventory and shipping.

3. TikTok Fulfilled (where available): TikTok offers fulfilment through its own logistics network in select regions, managing inventory, shipping, and returns.

Each option provides a streamlined in-app experience, letting customers track orders directly in TikTok.

How to Prepare for TikTok Shops

Before you can launch your shop, there are a few key steps to prepare:

1. Create a TikTok Business Account: If you haven’t already, ensure you have a TikTok Business Account set up. This will be essential to access TikTok Shops. Link to instructions here.

2. Register for TikTok Shops: TikTok Shops will have an official registration process. At first, we expect this to only be available for a few businesses before rolling out to everyone. We’ll be in contact again when applications open in Australia.

3. Set Up Your Product Catalogue: Like Facebook Shops, TikTok Shops will require you to upload your product catalogue. You’ll need clear images, accurate descriptions, and pricing to make your products stand out. Ensure all your product data is up-to-date and formatted for easy upload.

4. Prepare Your Shipping and Payment Information: You’ll need to link your payment gateways and set up your shipping options. Make sure you have streamlined processes in place to handle orders, track shipments, and provide great customer service.

   1. A consideration here is that as a marketplace, TikTok Shops charges a commission which is expected to be around 5-8% of the sale + shipping fee.

5. Review Your Content Strategy: TikTok is a platform driven by authentic and creative content. Now is the time to think about how you’ll integrate your products into engaging TikTok videos and live streams. User-generated content, influencer partnerships, and TikTok Ads will play a huge role in your launch strategy. If you’re interested in a TikTok content strategy please reach out to the Pattern Social team.

How Pattern Can Help?

• TikTok Relationship: Work with TikTok reps to help get your brand launched on TikTok shops.

• Leveraging Pattern Creator’s technology ‘Current’: TikTok Affiliates will play a large part in your TikTok Shops strategy, and Current helps brands navigate TikTok’s Creator Affiliate platform as well as build high-performing creator partnerships for your brand.

• Troubleshooting: Current is a certified partner with TikTok shops and can support teams in navigating any challenges that may arise and can support the management of your TikTok Seller Centre.

• TikTok Advertising: Pattern will work with your brand on the launch campaign strategy and implementation of paid and organic content to support your TikTok shop in driving revenue.

• Third-Party Product Fulfilment: Leverage Pattern’s logistics services to support stock management and order fulfilment.

Here at Pattern, we’re watching closely for news when TikTok Shops will officially launch in Australia – we’ll continue to keep you updated with the latest news! In the meantime please reach out if you have any questions.