TikTok Shop EXPLAINED | Dropshipping (2023)

In the past 28 days, we have achieved $51,000 in revenue with TikTok Shop, without any ad spend. In the last seven days alone, we reached$35,000 in revenue again, with no ad spend. However, it's important to note that TikTok Shop is relatively new, not only to me but also to the entire Shopify dropshipping community and the industry as a whole. Therefore, this article will focus on my experience and insights from the past 30 days. There is still much to uncover and learn about TikTok Shop, particularly in terms of optimizing it for Shopify drop shippers.

Pros and Cons of TikTok Shop

Before delving into the details, it is crucial to understand the advantages and disadvantages of using TikTok Shop.

Pros:

1. No ad spend: Generating sales on TikTok Shop is primarily achieved organically without the need for advertising expenses.
2. Potential for partnerships: You can collaborate with TikTok creators who have access to a large audience and leverage their influence to promote your products.
3. Product sales tracking: TicTik Shop Seller Center allows you to track the effectiveness of different TikTok creators in generating sales for your products.

Cons:

1. Cash flow delay: Payouts for TikTok Shop take seven days after the delivery of the order. This means you must be prepared to front the cash for the orders before receiving your profits.
2. In-house shipping preference: While dropshippers like us can use TikTok Shop, it is primarily designed for brands that handle their own in-house shipping.
3. Order cancellation risk: Orders must be shipped out with tracking numbers applied within three days; otherwise, the order will be canceled, and the customer will receive a refund.

To overcome the cash flow delay challenge, building a good relationship and rapport with a supplier is essential. Some suppliers may even be willing to handle the order payments on your behalf, allowing you to pay them after receiving your seven-day payouts. It's worth noting that both drop shippers and suppliers are navigating this new opportunity together, which presents a chance for mutually beneficial collaborations.

Keyword: TikTok Shop, TikTok creators, TikTok Shop Seller Center, cash flow delay, order cancellation risk

FAQs

Q: How long does it take to receive payouts on TikTok Shop? A: Payouts are processed seven days after the delivery of the order. However, once you build a relationship and establish a track record of successful deliveries, the payout time can be reduced to three days.

Q: Can drop shippers use TikTok Shop? A: Yes, drop shippers can use TikTok Shop. However, it is important to understand that TikTok Shop is more favorable for brands that handle their own in-house shipping.

Q: Is ad spend necessary for success on TikTok Shop? A: No, TikTok Shop primarily relies on organic promotion and collaborations with TikTok creators. This means that no ad spend is required, but the cash flow delay is something to consider.

Q: How can I mitigate the risk of order cancellations on TikTok Shop? A: To avoid order cancellations, it is crucial to ship out orders with tracking numbers applied within three days. Keeping an organized shipping process is key to ensure successful transactions.

Q: Can TikTok Shop be used outside of the United States? A: TikTok Shop is more favorable for brands in the United States due to its preference for in-house shipping. However, drop shippers from other countries can still utilize TikTok Shop, but may need to adapt their strategies accordingly.

Please note that the information provided is based on my personal experience and understanding of TikTok Shop as of the past 30 days. As TikTok Shop is still a relatively new feature, there may be further developments and updates to the platform in the future.