TikTok Dropshipping: A Low Investment Entry For SMEs

TikTok has become the go-to hub for influencer marketers with big followers who intend to use their influence to start a small business. 

These marketers promote their products to followers and a broad audience at a lower cost than traditional marketing, which requires significant capital investment in advertisements.

TikTok dropshipping is the new wave when starting an online business model; TikTok has offered a higher platform and plays a significant role in ensuring small businesses reach the right audience by posting on their accounts.

Tiktok shop just launched and changed the e-commerce game as many users are shifting towards creating Tiktok shops on their existing accounts, and some new users are also uploading products on their shops.

A TikTok user can now either sell their products or act as an affiliate to the brand and get paid anytime their follower or user on TikTok purchases a product on their TikTok shop.

The newly launched marketplace on TikTok has attracted thousands of dropshippers who want to market their products. 

TikTok dropshipping has enabled dropshipping businesses to thrive in their marketplace and also offers affiliate marketing for influencers who don’t own products or dropship products.

What is TikTok Dropshipping, and How Does It Work?

A dropshipping business implies selling products using a third-party platform like Shopify or TikTok without holding inventory, handling shipping, or packaging products.

It’s a low-entry-barrier business that requires little to no capital to start. Starting and running a successful drop-shipping business with as little as $100 is possible.

The tiktokdropshippingThe Tiktok dropshipping business model allows small business owners or Tiktok users to manufacture their products using their followers and also reach non-followers through the use of trending songs, hashtags, and collaboration with other Tiktok users.

When a user clicks on the product advertised or posted by the enterprise, the link redirects to brandable dropshipping stores or an affiliate site.

If the user converts into a sale, the entrepreneur will profit by increasing the product’s original cost or commission.

Leveraging the new TikTok shop feature helps with sales and brand awareness among small business owners on the Platform.

How To Use TikTok For Dropshipping Business

You must create a TikTok Business account to access the TikTok shop or start TikTok drop shipping. This account allows entrepreneurs to add website links in their bio.

The website link will lead users to your store on a drop shipper’s website, a Shopify website, or any other ecommerce platform.

The next step is to apply the UGC content creation methods, which implies that you create authentic videos of your products in use and post the same using trendy and viral elements to help the video go viral.

You intend to create Viral UGC videos to help boost sales and brand awareness on TikTok.

It’s recommended to post 3 videos daily, change thumbnails and captains’ video angles, and experiment with different hashtags.

You can also do Tiktok marketing, which is setting up and running Tiktok ads using the Tiktok business account we just created. It gives you access to TikTok ad manager, pixels, and analytics.

You can use the audience insight tools to target your audience. These tools estimate audience size, demographics, gender, lifestyle, and online shopping behavior based on the keyword you intend to target.

Pros and cons of TikTok dropshipping 

Like Shopify dropshipping, Tiktok dropshipping comes with the dos and don’ts of selling products on its Platform.

Setting up a TikTok shop involves a lot of work, from the application to shop approval, data exchange and enhancement, and information. 

Weighing the pros and cons of starting Tiktok dropshipping can help us determine whether it’s a good business model.

Pros

Most enterprises love low start-up costs, and TikTok offers just that. It has remained one of the reasons why start-ups are setting up their businesses, ready to launch on the TikTok platform.

It’s easy to expose your products to over a million users using trendy hashtags like #Tiktokmademebuyit, #Amazonfinds, etc.

Most of the viral products on Tiktok used the above hashtags, which had over 60 billion views when writing this post.

TikTok dropshipping allows dropshippers to be in their natural elements and creative in a way they produce content with freedom and ease.

Over 150 Million Americans use the TikTok Platform, according to TikTok Newsroom.

Cons

The probability of a piece of content going viral on TikTok is high. 

You will likely experience substantial engagement rates regarding comments, likes, tags, and even reposts, but this doesn’t translate into conversations.

If you run paid ads on Tiktok, your product will target the right audience, unlike regular posting, which will not give good ROI since most of the views are either on Tiktok for fun, non-spenders, or just amazed by your products but don’t have the means to purchase.

Apart from that, since setting up or accessing a TikTok shop or account is easy, thousands of stores like yours are trying to sell the same products to the same audience; hence, it is hard to make sales if your competitors are selling the same effects as your store.

Tiktok business is only available in some locations, which makes non-US residents unable to access Tiktok shops or its features to market their products.

For international users, a non-US resident LLC gives you the power to access Tiktok Features just like our counterparts in the USA.

You can now get your EIN. As a non-US resident, you can use a TAX ID to register a US bank account and access Stripe or Shopify payments.

Conclusion

If you want to start dropshipping on TikTok, you must accept what comes with it, both the ups and the downs, but most importantly, you must learn how to use it to maximize your profitability.

It would also help if you chose the right niche for your TikTok dropshipping store. 

It would help if you had a Shopify store set up, and you can either do this alone by signing up for the ongoing offer of $1 per month for 3 months consecutively, which only bills you $3 at the end of the 3 months instead of the average $39 per month.

Start a free trial today and enjoy 3 months of Shopify for $1/month Instead of $39/month on selected plans. Sign up now

If you are new and want help with Shopify store design, we offer professional store design services for only $49. Check our Services Here.

While having many followers is good, your product must resonate well with them.

An influencer selling fashion-related products to followers who only engage with their account for related products needs to be included big time.

Share your thoughts in the comment section below.

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