TikTok has taken social commerce to the next level with TikTok Shop enabling in-app shopping. Now TikTok aims to optimize the logistics side with the launch of Fulfilled by TikTok. This end-to-end fulfillment service handles inventory storage, packing, shipping, returns, and more - streamlining operations for TikTok Shop sellers.
What is Fulfilled by TikTok?
Fulfilled by TikTok is TikTok’s own global fulfillment network for TikTok Shop sellers. It removes the complexities of fulfillment operations so sellers can focus entirely on their ecommerce store and content creation.
How it Works
With Fulfilled by TikTok, sellers send their inventory to TikTok’s fulfillment centers. When an order is placed, TikTok handles picking, packing, and shipping the products to customers.
TikTok also provides warehousing, inventory management, customer service, and processes returns - taking care of the entire fulfillment process end-to-end.
Fulfilled by TikTok offers several advantages:
- Global fulfillment capabilities
- Reduced operational costs
- Improved delivery speed and reliability
- Streamlined experience for sellers
- Enhanced customer experience
- Increased sales and revenue opportunities
By providing reliable and fast fulfillment, TikTok aims to encourage more brands to sell through TikTok Shop.
Fulfilled by TikTok Pilot Program
Fulfilled by TikTok first launched in 2022 as an invite-only pilot program for select TikTok Shop sellers in the US.
Pilot Selection Criteria
To qualify for the pilot program, sellers need to meet certain criteria:
- Have an established TikTok Shop in the US
- Be able to ship a minimum number of orders per month
- Have a product catalog aligned with TikTok’s categories
- Commit to TikTok's terms and program participation
How to Apply
Eligible sellers can apply by filling out the application form available in the TikTok Shop seller dashboard. TikTok will review applications and select participants.
Future Expansion Plans
The plan is to eventually expand Fulfilled by TikTok more widely in the US and globally. But TikTok is taking a phased approach to scaling the program thoughtfully.
How Fulfilled by TikTok Works
Let’s look at the step-by-step process of how Fulfilled by TikTok fulfills orders:
1. Send Inventory to TikTok Warehouses
As a seller, you send your product inventory to TikTok’s fulfillment centers, strategically located for efficient distribution.
TikTok provides guidance on preparing and shipping your inventory to their warehouses.
2. TikTok Manages Your Inventory
Once received, TikTok takes over inventory management. This includes storage, tracking stock levels, and replenishment notifications to you when inventory is low.
3. Order Placed on TikTok Shop
When a customer places an order on your TikTok Shop, the order information is sent to TikTok.
4. TikTok Picks & Packs Order
TikTok’s warehouse workers pick the correct items from inventory to fulfill the order. They professionally pack and prep the order for shipment.
5. TikTok Ships Order to Customer
TikTok leverages its relationships with shipping carriers to deliver the order to the customer quickly and reliably.
The customer gets updates throughout the process. Sellers can also track order status.
6. TikTok Handles Returns
If the customer needs to return an item, TikTok manages the return process including refunds.
7. TikTok Provides Support
TikTok also offers multilingual customer service for inquiries and support.
Benefits of Using Fulfilled by TikTok
Opting for Fulfilled by TikTok offers many advantages compared to managing your own fulfillment:
Gain access to TikTok’s global fulfillment and delivery capabilities to unlock new markets.
Cut down fulfillment operational costs by leveraging TikTok’s economy of scale.
Simplify logistics, reduce labor, and free up your time to focus on strategic priorities.
Leverage TikTok’s supply chain relationships to improve delivery speed and reliability.
Enhanced Customer Experience
End-to-end support improves customer satisfaction and retention.
Gain data and insights into your inventory, supply chain, and customers.
Streamlined order processing and inventory management saves time and headaches.
Scaling fulfillment enables you to meet higher sales demand on TikTok Shop.
Tips for Preparing Your TikTok Shop
If you want to apply for Fulfilled by TikTok, here are some tips to prepare:
Audit Your Product Catalog
Review your product catalog and tailor it towards categories that perform well on TikTok Shop. Discontinue low-performing items.
Ensure Accurate Inventory Counts
Carefully count existing inventory and update your inventory management system. Inaccuracies create problems.
Standardize Your Packaging
Use cohesive, branded packaging. This makes the fulfillment process smoother. Remove any non-essentials.
Review Shipping Profiles
Evaluate your shipping and delivery settings. Update your profiles and rules to align with TikTok Shop's needs.
Build Up Inventory Volumes
Gradually increase inventory volumes of your best-selling products so you can comfortably meet higher order demands.
Test Order Fulfillment
Place test orders yourself and verify they are fulfilled accurately and efficiently before relying entirely on TikTok.
Level Up Your TikTok Content
With logistics handled by TikTok, focus your energy on boosting your TikTok content, ads, and partnerships to drive more sales.
Tips for Managing Your TikTok Shop with Fulfilled by TikTok
Once you are selling through Fulfilled by TikTok, follow these tips:
Closely Monitor Stock Levels
Keep an eye on your inventory levels in the TikTok Seller Center. Restock products before they run out of stock to avoid losses.
Stay on Top of Orders
Frequently check your TikTok Shop orders dashboard to stay up-to-date on the status of orders and detect any issues.
Provide Order Updates
Keep customers informed directly about order statuses and tracking updates to set expectations and improve satisfaction.
Analyze Performance Trends
Use TikTok Shop’s data and analytics to spot bestselling items, demographic insights, seasonal impacts, and other trends to optimize your catalog and marketing.
Respond to Customer Feedback
Address any customer concerns promptly and directly. Feedback also helps improve your processes.
Promote Fast Fulfillment
Market your shipping speeds in your TikTok content and ads since fast fulfillment can boost conversions.
Develop Loyalty Programs
Offer discounted pricing, free shipping, or other rewards to loyal customers who shop consistently at your TikTok Shop.
The Future of Commerce on TikTok
Fulfilled by TikTok elevates the end-to-end shopping experience on TikTok Shop. And TikTok is just getting started when it comes to commerce.
More Robust Tools for Sellers
TikTok plans to provide sellers with more powerful ecommerce tools natively within TikTok - reducing reliance on third-party platforms.
Expanded Ad Options
More ad formats that seamlessly blend entertainment and shopping like shoppable video ads.
Deeper integration between content creation, product discovery, and shopping to make buying frictionless.
Leveraging its recommendation algorithm to provide customized, relevant product suggestions for each user.
Social Commerce Domination
With its massive user base and innovative features, TikTok is gearing up to dominate the future of social commerce.
Fulfilled by TikTok lays the operational foundation for TikTok Shop’s continued expansion. Sellers who leverage TikTok’s fulfillment capabilities will gain a key competitive edge as shopping on TikTok goes mainstream.