How much does TikTok Shop cost for sellers?

TikTok Shop charges a referral fee of around 5 to 8 percent per transaction depending on the product category. There are no monthly subscription fees to list products. Sellers may also pay for TikTok ads or affiliate commissions if they use creator partnerships, but the base platform is free to join with no listing fees.

Who can sell on TikTok Shop?

TikTok Shop is available to registered businesses in supported markets including the US, UK, and several Southeast Asian countries. Individual sellers need a registered business entity. You must meet TikTok's seller eligibility requirements including valid business documentation, product compliance, and shipping capability. Requirements vary by market.

Is TikTok Shop good for B2B products?

TikTok Shop is primarily designed for consumer products - physical goods that can be demonstrated visually and shipped directly. B2B SaaS products, enterprise services, and high-ticket business purchases are not a natural fit for the platform. B2B brands can still use TikTok for awareness, but Shop is built for direct-to-consumer transactions.

How does TikTok Shop compare to Amazon?

TikTok Shop is discovery-driven - users find products through content they are already watching. Amazon is intent-driven - users search for specific products they already want. TikTok Shop excels at impulse purchases and product discovery. Amazon excels at considered purchases and comparison shopping. Many brands sell on both for different purposes.

What Is TikTok Shop?

TikTok Shop is TikTok's integrated e-commerce platform that allows brands, sellers, and creators to sell products directly within the TikTok app. Instead of linking out to an external website, users can browse, add to cart, and complete purchases without ever leaving TikTok. The feature transforms TikTok from a content platform into a full social commerce marketplace where product discovery and purchase happen in the same experience.

Launched globally in stages starting in 2022, TikTok Shop has grown rapidly. According to Bloomberg's reporting, TikTok Shop processed over $9 billion in US merchandise sales in 2024, and eMarketer projects the platform will continue growing as social commerce becomes a larger share of overall e-commerce.

How Does TikTok Shop Work?

TikTok Shop integrates commerce into TikTok's existing content experience through several touchpoints:

In-feed shopping. Product tags appear on TikTok videos. When a creator demonstrates a product, viewers can tap the tag to see product details, pricing, and reviews - then purchase without leaving the app. The content is the storefront.

LIVE shopping. Sellers and creators host live streams where they demonstrate products in real time. Viewers can purchase featured products during the stream with a few taps. This format combines entertainment, product demonstration, and immediate purchase in one experience.

Product showcase. Sellers have a dedicated shop tab on their TikTok profile where users can browse their full product catalog. This functions like a mini storefront within TikTok.

Shop tab. TikTok has a dedicated shopping section in the app where users can browse deals, trending products, and recommended items based on their interests and viewing history.

Affiliate program. Creators can earn commissions by promoting products from TikTok Shop sellers. This creates a marketplace where brands with products connect with creators who have audiences - both benefit from sales.

Why Is TikTok Shop Growing So Fast?

Discovery-Driven Commerce

Traditional e-commerce is intent-driven. A customer searches for "wireless headphones," compares options, and buys. TikTok Shop flips this model. A user is watching entertaining content, sees a creator using headphones they like, and buys them on impulse. The purchase starts with discovery, not intent.

This discovery-driven model reaches customers who did not know they wanted a product until they saw it in action. For brands with products that benefit from visual demonstration, this unlocks demand that search-based platforms cannot reach.

Creator-Powered Selling

TikTok Shop's affiliate program turns TikTok's massive creator ecosystem into a distributed sales force. A brand lists its products, sets commission rates, and creators with relevant audiences promote those products through organic content. The TikTok algorithm handles distribution, the creator handles persuasion, and TikTok Shop handles the transaction.

This model is particularly powerful for new brands. You do not need an advertising budget or an existing audience - you need a product that creators want to promote and competitive commission rates.

Frictionless Checkout

Every click between product discovery and purchase is a drop-off point. TikTok Shop eliminates the friction of leaving the app, navigating to an external website, creating an account, and entering payment details. Users save their payment information once and can purchase with a few taps. This reduced friction directly increases conversion rates compared to link-in-bio strategies.

What Products Sell Best on TikTok Shop?

Products that perform well on TikTok Shop share common traits. They are visually demonstrable - viewers can see the product working in a video. They have a reasonable price point - typically under $50 for impulse purchases, though higher-ticket items sell through LIVE shopping. They solve a clear problem or provide an obvious benefit that can be communicated in seconds.

Categories that consistently perform well include beauty and skincare, fashion and accessories, home and kitchen gadgets, health and wellness products, and tech accessories. Products that require lengthy explanation, complex customization, or high-trust purchasing decisions are harder to sell through TikTok Shop's discovery model.

Should Your Brand Be on TikTok Shop?

If you sell physical consumer products with visual appeal and price points under $100, TikTok Shop is worth testing. The platform offers distribution reach that is hard to match through traditional e-commerce channels, and the creator affiliate model provides marketing leverage without upfront ad spend.

If you sell B2B software, services, or high-ticket products, TikTok Shop is not the right channel. You can still use TikTok for brand awareness and content distribution, but the Shop feature is built for direct-to-consumer product transactions.

Start by listing your best-selling products, setting competitive affiliate commission rates (15 to 20 percent attracts quality creators), and letting the creator marketplace drive your initial sales. TikTok Shop rewards brands that let their products speak for themselves through creator content rather than polished brand advertising.