TikTok is a cultural thing, and cultural things tend to influence businesses more and more.
More than 58% of TikTok users say what they see on the platform serves as shopping inspiration for them – and chances are, they are seeing your products too. The question is: Are you prepared to fulfill the orders quickly and efficiently once they start to come in?
In this guide, we’ll discuss all you need to know about TikTok Shop fulfillment. We’ll show how it works and why it’s important. You’ll learn about different ways to handle your orders and how to sidestep some of the most common challenges.
TikTok Shop and social commerce
TikTok Shop is part of a new trend called social commerce. Social commerce refers to people buying and selling products directly through social media platforms. It combines the fun of social media with the convenience of online shopping.
On TikTok, a video can go viral within minutes. This is where TikTok Shop is most handy; instead of leaving the application to check out the product, they can do it within the TikTok app.
This trend turns online shopping into a completely new process of interaction. Customers can ask questions, read the reviews, and even see live demonstrations of how something works – all in one place. All of this builds trust and makes the process of shopping far more engaging.
@keira_knox @grace & stella #graceandstella #undereyemask #fyp #tiktokshop #selfcare #girls #pink #skincare #hydratingskincare #amazon #foryoupage ♬ original sound – keira🪩🍓👼🏼
Grace and Stella Under Eye Mask Unpacking at TikTok
For sellers, TikTok Shop is a great opportunity. You have the potential to reach a lot of people in a very short period of time and turn viewers into customers. When in September 2023, the social platform introduced TikTok Shop in the U.S., it counted 150 mln viewers. What’s more:
- 55% of users had actually made a purchase after seeing a brand or product on TikTok.
- 50% of users on TikTok have bought something after watching TikTok Live.
- Some brands attribute 30-40% of the increment in 80% offline sales to TikTok.
While opening a TikTok Shop is a great opportunity, as with any product-related endeavor, it comes with certain logistical challenges (we will examine those later in the article).
What is TikTok Shop fulfillment?
Simply put, TikTok Shop fulfillment refers to the process of managing and delivering orders placed through the TikTok Shop.
Here are the key components of TikTok Shop fulfillment:
- Inventory management: Sellers must keep track of their inventory to ensure products are available for purchase. Inventory details are often managed through TikTok’s seller dashboard or integrated third-party systems.
- Order processing: When a customer places an order, the seller is notified to prepare the item for shipment. TikTok Shop typically provides an interface for sellers to view and manage these orders.
- Shipping and delivery: Sellers are responsible for shipping the products to customers. TikTok Shop may provide partnerships with logistics providers to streamline the shipping process. Some regions offer “TikTok Fulfilled” services, where TikTok manages storage, packing, and shipping for the seller.
- Tracking and notifications: Customers are provided with tracking details to monitor the status of their orders. Sellers must update the shipping status and provide tracking numbers through the platform.
- Returns and refunds: TikTok Shop includes policies for returns and refunds to ensure customer satisfaction. Sellers must adhere to these policies and manage returns efficiently.
TikTok shopping impulse is strong but short-lived, as are brand loyalties. When a customer sees a viral product and places an order, it’s up to the seller to ensure that the product is delivered quickly and securely. This is why it is imperative for businesses that sell on TikTok to have an efficient order fulfillment process.
The typical TikTok fulfillment process
The TikTok fulfillment process begins when the customer places an order via TikTok Shop. Once that happens, the platform notifies the seller about the new order through the seller dashboard so they can check the details of the order and confirm its availability.
After that, the actual fulfillment starts: the seller begins to prepare the item for shipment by picking up the product from inventory, packing it securely, and applying a shipping label. On TikTok Shop, the requirement is to have orders shipped out within a certain time, usually 1-2 business days.
When the package is ready, the seller updates the status of the order in the TikTok Shop system to Shipped and sends the tracking information. This update is very important for both TikTok and the customer to trace the order’s situation.
Then, the package is handed over to the shipping carrier for actual delivery. Throughout this whole process, TikTok supports the communication between the seller and the customer, should either party have any type of problem or question.
If a return is needed, it also happens via the TikTok Shop platform. The return process is managed by the seller according to TikTok’s policies.
Challenges in TikTok Shop fulfillment
For better or worse, TikTok is unpredictable. Your product could be ticking along nicely one day, and the next, it’s all over the platform. And the day after that, it’s so last year. That completely breaks the traditional methods of demand prediction.
Thankfully, with some truly great command of common-sense wisdom, this can still be navigated. However, you probably sell not just on TikTok but on other platforms, too. That’s where things might get ugly in terms of inventory management – the fluctuating demand from TikTok can wreak havoc on what’s happening at warehouses and, conversely, on other channels.
That’s why it is crucial to carefully monitor your stock.
TikTok as a platform also strives to live up to its fame as the No.1 instant gratification provider in the universe – meaning their delivery deadlines are very strict.
At the same time, TikTok hardly recognizes borders, so international orders are the norm. However, the customs procedures and transit time issues are left to the merchant to handle.
TikTok fulfillment options for sellers
A seller entering TikTop Shop is essentially presented with three main ways to handle the orders. Each of these methods has its own advantages and drawbacks, which we will look at more closely below.
1. Fulfilled by TikTok (FBT)
Fulfilled by TikTok is a service where TikTok itself handles the storage, packing, and shipping of products for sellers. This is where you can choose to send your inventory to TikTok’s warehouse, so that when a customer places an order, TikTok takes care of picking, packing, and shipping the item directly to the customer.
Eligibility criteria for FBT:
- You should demonstrate a proper level of inventory management, in line with TikTok product listing standards.
- Inventory levels should be provenly consistent.
Advantages of FBT:
- Picking and packing are on TikTok’s side.
- TikTok provides integrated customer protection, ensuring the satisfaction of your buyers.
- TikTok works to ensure faster shipping times (including same-day delivery in some regions).
Disadvantages of FBT:
- The fulfillment fees associated with FBT might be higher compared to self-fulfillment.
- You have less oversight over the shipping process and customer service.
- Meeting FBT standards might be challenging for new sellers without a long track record.
2. Self-fulfillment
Self-fulfillment is pretty much self-explanatory: the company manages every aspect of order fulfillment by itself. That includes having to own a facility to store the products, and hiring the personnel to do the picking and packing, and shipping, as well as handling customer service requests or returns.
Advantages of self-fulfillment:
- Full oversight over the processes, customer service, and (importantly) packaging quality.
- Possibility to take last-minute changes or customize packaging where needed.
- (Potentially) more confidence in what’s being done, and what’s being paid to them along the fulfillment process.
Disadvantages of self-fulfillment:
- Having to inevitably hire more people.
- Scaling is thus less comfortable.
- Obligatory investments in storage space, labor, and fulfillment infrastructure.
3. 3PL warehouse for TikTok shop
This option means hiring a reliable fulfillment partner to handle all shipping and fulfillment. The 3PL provider ideally manages warehousing, packing, shipping, and even returns. However, the prerequisite of an efficient 3PL service is to find an efficient provider and ensure their systems work well with yours.
Advantages of 3PL:
- 3PL providers are known to easily scale operations whenever needed, so you won’t have to invest in additional infrastructure. They make it much easier to handle seasonal demands.
- There’s a lot of logistics expertise and often advanced tech involved in 3PL providers’ know-how, coming in especially handy in local and regional settings.
- Economies of scale can help lower overall shipping and handling costs.
Disadvantages of 3PL:
- You might have less direct control over the fulfillment process. It’s a matter of monitoring the 3PL’s performance to build trust.
- The quality of service can vary based on the 3PL provider, impacting customer satisfaction.
Choosing the right 3PL for your TikTok Shop
So how to choose a 3PL for TikTok Shop fulfillment? Apart from the general considerations like track record and pricing, look at:
- Do they specifically work with social commerce? There’s a difference between specializing in traditional order fulfillment, on the one hand, and being okay with fast-paced eCommerce and social selling. It is a good idea to see how comfortable the 3PL provider is with platforms like TikTok based on their specialization and focus.
- Do they prioritize faster order processing? Speed is not equally important to everyone, but social commerce is about rapid fulfillment, often with same-day or next-day shipping. Choose those 3PLs that specifically emphasize speed, including international shipping.
- How good are they at inventory management? Transparency and tracking are important here, especially if TikTok is not the only sales channel in your business model. Work with a 3PL provider who can manage stock efficiently and whose software can work with TikTok.
- How do they handle reverse logistics? Returns management is always tricky, and TikTok shoppers also expect a seamless product return experience.
Does ShipTop integrate with TikTok?
If you consider reaping the benefits of 3PL warehouse for TikTok shop fulfillment, ShipTop is here to help.
ShipTop platform is integrated with a number of eCommerce and social commerce platforms, including TikTok. We provide a clear and transparent fulfillment process, with centralized order and inventory management. This is particularly beneficial for companies who sell over multiple channels, since we strive to bring deep visibility into omnichannel fulfillment and reverse logistics.
Our clients often request assistance in dealing with seasonal or trend-driven spikes in demand. In translation, our team has lots of experience with dealing with unpredictable demand, which is par for the course with TikTok.
Finally, our strategically placed warehousing locations in Canada, close to the US border, allow for additional benefits in case of international shipping. Contact us to learn how we can help you streamline TikTok order fulfillment.
