Selling on TikTok Shop? Why You Need a WMS

Bytedance, TikTok’s parent corporation, reports that more than one billion people use TikTok every month, meaning an estimated one out of every 5 people with internet access globally use the application. Like many other social media sites before it, there’s a huge opportunity for companies to get their products in front of an interested, engaged audience. However, advertising through TikTok hasn’t always been straightforward until the release of TikTok Shop. 

What Is TikTok Shop?

TikTok Shop is a new way for businesses to promote and sell their products on the TikTok platform through in-feed videos, LIVEs, and the product showcase tab. This new feature provides businesses with expanded, more direct methods for promoting their products on the platform and increased access to relevant influencers.

How Does it Work? (And How Do You Get Paid?)

Companies can utilize TikTok Shop in three ways.

In-feed videos

In-feed videos appear in a user’s For You Page (FYP) just like a standard video or ad. Howeverthey’ve been enhanced through Tik Tok Shop with a shopping basket icon in the corner which links to an in-app shop page for the items shown in the video.

Live Shopping

TikTok live shopping, sometimes called a “LIVE”, is an interactive event where a merchant or creator hosts a live stream showcasing products. Much like the in-feed video, viewers are presented with a shopping basket icon which directs them to a store page with the items featured in the LIVE.

Product Showcase Tab

The product showcase tab features all products the creator or brand wants to promote. Users can browse items and purchase them directly through this page.

As a seller, you make your money by selling your product. Income earned, minus any platform or promotional fees, would be deposited into the bank account you link when signing up for TikTok Shop.

What Are TikTok Shop’s Customer Order Shipping Guidelines?

TikTok offers two methods for companies to fulfill their orders. The first is Shipping by TikTok, in which companies store inventory with TikTok, who picks, packs, and ships each order for a fee. The second is Shipping by seller, where the company making the sale also handles the packing and shipping operation. Note that even if you choose Shipping by seller, you must still use a TikTok Shop integrated carrier, which provides tracking services to the item purchaser. Integrated carriers vary by type, currently broken down into economy, standard, and express tiers.

Note that orders not shipped within 48 hours of when they’re placed are automatically canceled. This requirement includes weekends. If a company cannot ship an order within 48 hours, it can contact the purchaser to request an extension. Companies that can consistently ship items within 48 hours, maintain a positive seller rating and low cancellation rate, and provide accurate tracking information for each order will be granted the “48hr Dispatch” label, which appears in search results and on the seller’s profile.

These strict guidelines mean, of course, that sellers will have to take their warehousing and fulfillment seriously—even if they are a relatively small operation. This includes investing in software to help track inventory and manage the fulfillment process. While order management software (OMS) and inventory management software (IMS) have some of these capabilities, warehouse management software (WMS) might make more sense as an integrated approach—especially if you are storing and packing items in your facility.

Tips for Fulfilling Orders on TikTok Shop

While the ultimate impact of the 48hr Dispatch label is unknown, we do know that TikTok is pushing it and is likely to reward companies that put in the work with increased exposure, which can lead to more sales. So what do you need to do as a seller?

1. Don’t Start Before You’re Ready
   There’s no guarantee that your product will go viral on TikTok—but you need to be ready to respond to demand if you do, or at least have a plan for how you’ll handle such a situation if it arises.  
2.  Maintain Careful Inventory Counts
   With the tight turnaround times that TikTok demands, you likely won’t be able to restock if you run out of product before the deadline for automatic cancellation passes.
3. Standardize the Process
   Because the margin for error is so tight, you’ll need to standardize the process as much as possible. That may mean starting with a few of your simplest SKUs upfront, even if you don’t think they’ll ultimately be your best sellers.

How a WMS Can Help with eCommerce Order Fulfillment

TikTok Shop is a promising new way for businesses to reach audiences who genuinely want their products. However, long-term success on the platform will likely mean adhering to TikTok’s tight order fulfillment requirements. Executing under such tight timelines can be stressful at best and impossible at worst. 

Again, Warehouse Management Software can help with this problem by giving you the information you need to streamline your process and ensure that your information is always accurate. 

Interested in seeing what a scalable WMS for eCommerce looks like? Schedule a demo today to see Infoplus in action and discover what it can do for you.