TikTok has taken the world by storm. With over 1 billion monthly active users, it’s one of the fastest growing social platforms. But did you know you can also make money on TikTok through its integrated e-commerce features?
TikTok Shop allows creators and brands to add product links and shops to their TikTok profiles. This opens up various monetization opportunities, from affiliate marketing to selling your own branded products.
In this comprehensive guide, you’ll learn:
- What is TikTok Shop and how it works
- Requirements and steps to become a TikTok Shop seller
- Strategies for earning $1000+ per month with TikTok Shop
- Monetization models like affiliate marketing and brand collaborations
- Optimizing your content using TikTok’s unique algorithm
So if you want to unlock TikTok’s money making potential, keep reading!
What is TikTok Shop and How Does It Work?
Launched in late 2020, TikTok Shop allows businesses and creators to link their product catalogs to their TikTok profiles.
This creates a native shopping experience for users. When watching TikTok videos, users can simply tap on pinned product links to explore and purchase featured items.
Some key capabilities of TikTok Shop include:
- Sellers can tag products from their online store in TikTok posts.
- Shoppable video ads make buying seamless without leaving the app.
- Hashtag challenge plus allows creators to link shoppable products to branded hashtag campaigns.
In 2021, TikTok Shop expanded to several overseas markets like Southeast Asia and the UK. It continues to grow rapidly, projected to hit $185 billion in ecommerce sales by next year.
This creates massive opportunities for businesses and creators. By linking your products to TikTok’s hyper engaged user base, you gain access to millions of potential buyers.
Next, let’s explore the specific requirements for becoming a TikTok Shop seller yourself.
Eligibility Criteria for TikTok Shop Sellers
TikTok has strict policies in place to ensure legitimacy of sellers on its platform.
If you want to link your own online store and sell products via TikTok Shop, you’ll need:
- An existing ecommerce site or retail platform: Like Shopify, WooCommerce, or your own proprietary store.
- 10k+ followers on TikTok: Genuine and authentic followers, not inflated numbers.
- History of posting branded content: Show you have an engaged audience interested in your products.
- Business verification badge on profile: Confirms you’re a legitimate commercial entity.
Additionally, your website and payment integrations must meet TikTok’s technical requirements. Be prepared to submit business verification documents like company registration and brand trademarks.
Without an established storefront and decent TikTok following, it can be difficult gaining approval as a TikTok Shop seller.
But even if you don’t meet the criteria yet, you can still leverage TikTok’s unique algorithm and engaged users to promote products as an affiliate.
Keep reading to learn some proven affiliate marketing strategies.
4 Proven Strategies to Earn $1000+ Per Month
Wondering how people are earning over $1000 per month leveraging TikTok Shop?
Here are some of the most effective strategies used by successful TikTok influencers and affiliate marketers:
1. Partner With Brands as an Affiliate Promoter
Affiliate marketing allows you to earn commission by promoting other brands’ products.
For example, let’s say Acme Tools has an affiliate program that pays 10% commission.
You can create TikTok videos reviewing or using Acme’s products. Your affiliate ID gets automatically attached to any product links you share.
Users who click your link and complete a purchase will earn you 10% as commission.
The great news? Many brands specifically look for TikTok influencers to promote their affiliate links.
In fact, niche products with price points between $50 to $200 tend to convert extremely well. Some categories ideal for TikTok Shop include:
With just 5 sales per day at $100 each, you can earn $500+ monthly through affiliate commissions.
Focus on showcasing genuine experiences and building trust with your audience. This helps drive more conversions over time.
2. Create Shoppable Hashtag Challenges
Hashtag Challenges are hugely viral on TikTok. Major brands launch them regularly to engage users for marketing.
But now with TikTok Shop, hashtag challenges can directly drive sales through integrated shoppable links.
The full workflow would be:
- Partner with a brand to create a sponsored Shoppable Hashtag Challenge.
- Seed it among your network and incentivize participation.
- Share top videos and tag products that can be purchased by users.
- Earn a commission on resulting sales driven by your campaign.
In late 2021, Bobbi Brown cosmetics ran a Shoppable Hashtag Challenge #WhatTheFoundation which garnered over 2 billion video views and $2.5+ million in sales!
3. Leverage TikTok LIVE and Recurring Video Ads
TikTok LIVE is an immersive way to engage your audience in real time. It’s also the perfect sales channel for promotion high ticket offers and limited inventory.
Schedule LIVE sessions focused on specific product launches or markdown deals on your TikTok Shop.
Initiate urgency among viewers by using tactics like:
- Countdown timer for the sale duration or remaining inventory
- Exclusive discount codes only available during LIVE
- Real-time sales tracker showing limited quantity
Additionally, TikTok Recurring Video Ads ensure your product links stay front-and-center for users:
Set them to display multiple touchpoints across days or weeks – programmatically improving conversion rates.
4. Analyze Performance Data and Continuously Optimize
As a digital marketer, data should be your best friend.
Luckily TikTok provides rich analytics within it’s Creator and Business Manager dashboards.
Monitor metrics like:
- Engagement Rate: Likes, Shares and Comments on your TikTok Shop posts
- Click Through Rate: Of users swiping up or tapping your product links
- Sales Volume: Transaction and revenue measurement available
- Content Benchmarking: Benchmark your KPIs versus competitors
Use the trends to identify your top performing products and video formats.
Then double down to create more high-converting content optimized for sales.
What is the Income Potential on TikTok Shop?
The money making potential with TikTok Shop depends significantly on your niche, content quality and audience size.
However, here are some average earning benchmarks:
- Top affiliate marketers: $5,000 to $15,000+ per month
- Mid-tier influencers: $1,000 to $3,000 per month
- Brand collaborations: $3,000+ per Hashtag Challenge campaign
With 1.5 billion installs worldwide, TikTok has incredible reach. Combining that hyper-engaged audience with commerce opens up an addressable market of millions of buyers.
Your income scaling comes down to:
- Mastering content formats optimized for sales
- Testing products effectively
- Building trust and credibility with your niche
The creators able to leverage these factors can build multimillion dollar online businesses on TikTok Shop.
So choose a niche you’re passionate about, deliver authentic value to your audience, and consistent income will follow.
FAQs About Making Money on TikTok Shop
Let’s go over some commonly asked questions about how to maximize your earnings with TikTok Shop:
Q: Do I need to be a TikTok creator to make money?
- You can absolutely use affiliate links only, no requirement to create shoppable content yourself. Focus on providing authentic reviews.
Q: How much does it cost to be a seller on TikTok Shop?
- Platform access is currently free but charges minor commissions between 4-8% per transaction. You need an existing ecommerce storefront.
Q: What commission rates do affiliates earn on average?
- Ranges vastly by product niche but averages from 5% to 15%. Certain brands offer rates up to 25%-50% for big influencers.
Q: Can I use both TikTok LIVE and standard videos?
- Yes you can use both formats but they serve different purposes. LIVE drives urgency while standard video ads deploy more targeting control.
Q: What niche products sell best on TikTok Shop?
- Consumer electronics, beauty products, apparel, and creative tools are all popular. Look for impulse purchase items under $150.
Conclusion and Next Steps
Thanks to TikTok Shop’s explosive growth, it’s now easier than ever for businesses and content creators to tap into social commerce.
Remember, you don’t need millions of followers or advanced shooting skills to get started (but it certainly helps!).
Focus first on understanding your niche audience and showcasing products you authentically use or recommend.
TikTok’s powerful algorithm will quickly serve your content to targeted users – if it’s providing entertainment or educational value.
Soon you’ll gain traction and can expand to more advanced tactics like branded hashtag challenges and exclusive LIVE product launches.
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For even more TikTok shop informations, be sure to bookmark Kalodata’s Dropshipping blog which offers weekly tutorials, product research analysis, student entrepreneur interviews and more. Here’s to achieving your ecommerce dreams in the new year ahead!
