Various businesses in the UK have been looking for effective ways to reach new customers and increase sales. TikTok has introduced a new tool that is gaining traction even with its competitors. Tiktok shop, in its infant stage in the UK market, has been of great help to SMEs. How effective are small businesses in using it? The answer is simple: Yes, Small businesses can effectively leverage the unique opportunities TikTok has to offer. This document outlines how TikTook Shop operates, defines its goals and benefits, and offers practical advice on how small businesses can use it effectively.
What Is TikTok Shop And How Does It Work?
TikTok has an integrated e-commerce service that makes it easier for businesses and content creators to sell to their users. TikTok shop allows business owners to promote their products through engaging videos or even live streaming. Every time a user purchases from TikTok without exiting the application, every purchase made is termed as an order.
In the range of 2021 to 2023, UK TikTok Shop has been increasingly popular among business owners and influencers. Not only is it easier to transact, it has become easier to create video content that makes it easier for small businesses to gain more customers.
Reasons Small Businesses Should Not Overlook the TikTok Shop
- Ability to Reach a Large Audience
Globally, TikTok has more than one billion users, including several millions from the UK. A good majority of these users are younger people keen on finding new products. With TikTok, small businesses stand a chance to market their products to a great number of people who are willing to pay for them.
- Marketing at a Lower Cost
There is a notable advantage for small businesses when it comes to budget constraints. The TikTok Shop enables them to market their products with minimal costs as seen in traditional means of advertising. Through the creation of unique and captivating videos, companies can go viral, which significantly increases their visibility.
- Improved Shopping Experience
It is easier to shop on TikTok because the buying process has been streamlined. Customers can see a product in a video or live stream, and then click a link to purchase it right there and then. This form of increased accessibility and convenience usually raises chances of sales, especially for impulse buyers.
- Freedom of Creativity
Small businesses have the chance to portray their personality and brand story by leveraging relatable and entertaining videos that TikTok users find fun. This promotes creation of a fan base who are likely to remain loyal to the brand, helping the company differentiate itself from its competitors.
- Collaboration with Influencers
The use of TikTok influencers can prove to be very beneficial to small businesses. Influencers has a ready-made audience which already believes in what they are endorsing. This partnership guarantees traffic and sales for small businesses’ TikTok Shop.
The Operations of TikTok Shop in Reference to Small Scale Businesses
- Launching a TikTok Shop
To begin, small businesses first have to create a Business Account on TikTok, then register for the TikTok shop. The registration also requires details about the business such as documents like business licenses and bank account details for payouts.
- Product Addition
After registration, the next step is to add their products to the shop. Each product has a product listing which should include pictures, descriptions, and prices. Videos showcasing the products can also be added to make listings more appealing.
- Product Marketing
Products can be promoted through different means such as;
Organic Content: Uploading videos appealing to the audience.
Live Streams: Going live to demonstrate the products and interact with potential customers.
TikTok Ads: Running paid advertisements to a wider audience.
- Order and Payment Management
On TikTok Shop, enterprises have a dashboard where they can view and manage orders, inventories, payments, and even customer queries. Payments are made to Tik Tok which acts as escrow until the transactions are confirmed to be successful.
Additional Strategies Targeted towards Small Businesses on TikTok Shop
The first thing to do is analyze your audience. Aim at understanding the content your target customers find appealing. To achieve that, TikTok’s analytics can be used to track engagement and improve the strategy.
Focus on producing both entertaining and educational videos that grab the viewer’s attention. Demonstrate how your products can be incorporated into daily life and how they can solve various problems.
Reply to comments and delve into trends while also conducting live sessions. All of this will help you build a rapport with the audience. Followers that are engaged will most likely become loyal customers.
Enlist influencers that share the same vision as your brand. They will assist in spreading the word about your products to a wider audience and help establish credibility to new customers.
Keep a look out for website challenges, hashtags, and trending music. Integrating these trends within your content will help you attract and engage more viewers.
Urgency leads to higher sales, so offer limited time deals and flash sales to stimulate purchases on TikTok Shop.
Continuously monitor how you are doing and what works for you. Adjust your strategy accordingly so that you attain better results.
Small jewelry makers based in the UK are perfect examples of this as they have leveraged TikTok and garnished a huge following by showcasing their creative side. Streaming new collection launches have also led to increased sales.
Artisan Food Producers
From jams to sauces and baked goods, local businesses use TikTok Shop to sell their products. They engage with food lovers by posting behind the scenes content as well as sharing recipes.
Fitness Equipment Sellers
Small brands demonstrate the use of their fitness equipment through videos, and tips and tutorials grab the attention of fitness lovers, which helps boost sales.
Challenges for Small Businesses on TikTok Shop
There are pros and cons that come with the TikTok Shop. Some of the challenges are:
Creating Consistent Content
Small business owners have a lot to do and creating engaging videos often can be tedious.
Competition
With a lot of people enrolling into TikTok Shop, it requires a lot of work to be unique.
Algorithm Changes
The TikTok algorithm changes agora, and for some businesses, it can be tough to deal with reach and visibility.
Is TikTok Shop Suitable for Every Small Business?
For young and tech savvy people TikTok Shop can be very beneficial. But for businesses that depend on face to face transactions, it may not be so effective.
