Blogs » Sellers’ Guide: How to Sell Products on TikTok Shop?

Sellers’ Guide: How to Sell Products on TikTok Shop?


Selling on Tiktok Shop

Table Contents

TikTok is more than just a social media platform for sharing dance clips. It is now an online marketplace where brands, entrepreneurs, and creators can sell products. The platform introduced its newest feature called TikTok Shop, and it’s taking the e-commerce world by storm.

With over 1 billion active users every month, TikTok is the fastest-growing platform right now. It’s also among the most influential ones.

With TikTok Shop, brands and retailers can reach customers and drive sales in innovative ways. Want to know how? Keep reading to learn more about TikTok Selling.

What is TikTok Shop?

Selling on Tiktok

Brands have been using TikTok as a marketing tool to reach and engage with a wide audience. But with the new TikTok Shop, they can now directly sell products on the TikTok platform. 

TikTok Shop is an in-app shopping feature. This means that people can buy and sell products without the need to open a web browser or a separate e-commerce store. This e-commerce marketplace became available in the Philippines in 2022.

In 2022, the TikTok Shop platform achieved an incredible feat, selling goods worth a staggering US$4.4 billion in Southeast Asia.

In the same year, the TikTok Shop platform sold a whopping US$4.4 billion worth of goods in Southeast Asia alone. 

TikTok Shop has been growing rapidly in popularity. Experts predict that it will become a major player in the e-commerce market in the years to come.

Who can Sign up for TikTok Shop?

As mentioned, brands, retailers, and creators can sign up and sell products on TikTok Shop. Want to become a TikTok Shop Seller? Good news for you – anyone can sign up for TikTok Shop, no matter how big or small their audience is.

Anyone can sign up for TikTok Shop, no matter how big or small their audience is.

TikTok Shop is open to any e-commerce business, big or small. You just need to make sure your products follow the platform’s policies and avoid the prohibited items. You can see the TikTok guidelines here

Now, if your products are listed in the Restricted Product guidelines, you must obtain approval from the platform before selling them on TikTok Shop. This may include food, beverages, medicine, and more.

4 Innovative Ways to Sell Products on TikTok

Live Selling on Tiktok

TikTok Shop offers a number of features that make it a convenient and engaging shopping experience for users, including:

  1. Shoppable videos: TikTok sellers can showcase their products with fun short videos. Interested buyers can shop for products by tapping the basket icon or the link that the seller provided. 
  2. Live streaming: Sellers can sell products on live stream, engaging with customers in real-time LIVE by tapping the pinned products or browsing the shopping basket icon.
  3. Product Showcase: TikTok sellers can build their own storefronts where customers can buy directly on the platform. 
  4. Affiliate program: Sellers can partner with influencers to promote and sell products on the TikTok shop.

What are the TikTok Seller Requirements?

Are you ready to create your own TikTok Shop? Awesome! But first, you need to upload some documents to verify your identity and eligibility. Your requirements may vary depending on your seller type. 

For individual sellers, you may use the following IDs and documents:

  • passport 
  • PhilSys ID, 
  • UMID
  • SSS
  • PhlPost ID
  • Voter’s ID
  •  PhilHealth ID
  • Professional Identification Card (PRC) ID
  • Driver’s License

For corporate sellers, you are required to send a copy of: 

  • Company certificate documents

How to Set up TikTok Shop: a Step-by-Step Guide

TikTok Shop

So, you have the documents ready. Follow the steps below to set up your own TikTok shop: 

  1. Visit the TikTok Seller page
  2. Select whether you want to sign up with your existing TikTok account or with your phone number and email address.
  3. If you sign up with your TikTok account, enter your TikTok username and password. If you sign up with your phone number and email address, enter and verify the details you have used.
  4. Fill out the application form.
  5. Upload the required documents. 
  6. Wait for the approval of your application 

TikTok will review your application, and typically, it takes 1-2 days before you receive the result. Once approved, you can now start selling products on the TikTok shop.

How Much are TikTok Seller Fees?

Setting up a TikTok shop and listing your product on the platform is completely free. However, the platform will automatically deduct seller fees from the final order/payout settlement. These fees may include the marketplace commission fee, transactional fee, affiliate fee, as well as other fees related to shipping, vouchers, and penalties.

1. TikTok Shop Marketplace Commission Fee

Update: Effective January 15, 2024, TikTok Shop Philippines has increased the Marketplace Commission Fee for each product sub-category. The new fee now ranges from 2% to 3.6%, up from the previous range of 1.3% to 2.5%.

You can use the following formula to calculate your TikTok Shop commission fee:

Commission Fee* = Commission Rate % × (Item Price – Seller Discount)

It’s important to note that VAT is already included in this calculation. Additionally, this calculation already incorporates VAT. However, the Shipping fee and TikTok Shop platform discounts are not included in this commission fee calculation.

Visit the TikTok Shop Academy for the complete list of seller fee rates per category.

2. TikTok Shop Transaction Fee

Apart from Marketplace Commission Fee, Tiktok Shop sellers in the Philippines (both Local-to-Local and Crossborder) are also required to pay a transaction fee of 2.24% for every order/payout settlement on Tiktok Shop.

To calculate your transaction fee: you can use the following formula:
Transaction Fee = (Customer Payment – Customer Order Refund) * 2.24 %

The Tiktok Transaction Fee charges are deducted directly from the order settlement. Only those orders that the buyer completely settled are valid for the transaction fee. Cancelled, fully returned, and refunded orders are considered invalid and shall not incur transaction fees.

To see how much fee you paid for each order, you can go to TikTok Shop Seller Center > Finance > Transactions > To settle > View Details. You can also learn more about the fee structure at the TikTok Shop Academy under the transaction fee section.

3. Affiliate Commission Fee

If you are a seller on TikTok Shop, you can boost your sales by collaborating with Creators who are part of the TikTok Affiliate Programme. These TikTok users can help you promote and sell your products to their followers. For every successful sale that the TikTok Creator makes, you will pay a commission fee.

Sellers can set up the commission rate and other details in the Affiliate Plan section of the TikTok Shop Affiliate Marketing module.

TikTok Shop will automatically deduct the affiliate commission fee from the successful order. You can use the following formula to calculate your affiliate commission fee:

Affiliate Commission Fee = Affiliate Commission Rate X (Subtotal before Discount – TikTok Shop Discount – Seller Discount)

4. Other TikTok Seller Fees

In addition to the three major TikTok Seller fees mentioned above, there are other fees that may impact your profit margin. These fees are associated with shipping, penalties, and other promotions. To avoid any unexpected surprises, you can see here the complete list of fees and adjustments on Tiktok Shop.

How Can a Seller Be Exempted From Paying the Marketplace Commission Fee?

New sellers on TikTok Shop and well-performing sellers are exempt from the Marketplace Commission fee.

Great news! Some Tiktok Shop sellers don’t have to pay the Marketplace Commission Fee. This only applies to new sellers on the TikTok shop and good-performing sellers.

First is the new New sellers who have completed relevant seller missions will enjoy a 0% Marketplace Commission Fee for 90 days.

On the other hand, existing TikTok Shop sellers can also get this benefit by completing the Diligence Mission.

This is a monthly program that started in May 2023, after TikTok Shop introduced the Marketplace Commission Fee. The monthly mission varies for different sellers. You can find your mission in your TikTok seller account, under Growth Center and My Missions.

Don’t forget to claim your reward on the My Mission page after you finish your Diligence Mission, or it will expire.


Sell More Products on TikTok

Selling Strategy on TikTok

If you are a retailer or brand looking to sell products online, TikTok Shop is a great option to consider. Be Global E-commerce Corporation can help create your TikTok shop and kickstart your sales.

As the leading e-commerce enabler in the Philippines, our team will provide all the e-commerce solutions you need to drive sales and grow your business. All you need to do is contact us today.

Other topics you may like

Discover how can we help you grow your business

Schedule a meeting

Leave a Reply

Your email address will not be published. Required fields are marked *


That's the number of e-commerce sellers we have in the Philippines.

Do you think your e-commerce business can withstand the competition? Book a FREE consultation with e-commerce experts for a boost!