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Welcome to TikTok Shop Insiders podcast, your source for actionable news, trends and strategies. If you want to build a thriving brand or Creator presence on TikTok shop, this is your essential listen. Let's get started.
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All right. Welcome everyone, to TikTok Shop Insiders podcast, your source for the latest news and strategies for TikTok shop. I am your host, Ivan. We have here my friend Pat. What's up, dude? How you doing?
A
Doing good, bro. The kids are back in school. We're in a schedule. Life is good. Just braving this heat wave that's about to hit, but other than that, we're good. How are you guys doing?
B
Pretty good. Likewise. It's a empty house around this time where it was super busy for the summer, but pretty good. All kids are transitioning well to school. Parents are transitioning well to school. Getting up a little earlier and kind of getting them off their way. But yeah, it's been. It's been. It's been good on this side.
A
Now we just. Yeah, we just did our back to school night for my oldest, who's in middle school now. And so, yeah, the thing where we, like, walk his schedule and go to each of his classes and it was like a crazy flashback, right? Because I hadn't done that since middle school myself. And I remember, like, doing that with my parents, and now I'm doing it for my kid, which is just crazy to think about.
B
Yeah.
A
Yeah.
B
So what'd you learn? You're like, oh, crap, like, I gotta get the class. I only have, like a minute to run across.
A
Exactly. Yeah. He had four minute passing periods. And so we were going from class to class, like, running through, like, crowded hallways, crossing real quick and like.
B
Yeah, yeah, it was fun. Yeah. My, my. So I have two in. In grade school, and one I went to the first one, the third grade one. And then I was like, okay, I'm just gonna cr. Like leave early. Cause I already went to the kindergarten one a couple years ago. Right. And I was like, okay, I'll just not go. But I ended up going to the kindergarten one, and I'm so glad I did because my daughter had wrote me a note that said, hi, dad. Welcome to my desk. I'm so glad you made it to my desk. I was like, oh, my God, thank God. Like, I decided to hop in. And then, you know, of course I wrote a note back. But, yeah, if I didn't, then she would be heartbroken and we can't have that.
A
Good things.
B
Good, dad. Yeah, I'm glad I went. But yeah, we always like to start with some news latest kind of quirky things that we see from TikTok. It's ever changing. But something I have here is that you now can buy your Disneyland tickets through TikTok Shop, which is kind of cool. Yeah. I think just being able to, this is not in the U.S. i think it's more centered in Asia. But know, you know where there's money to be made on TikTok people will find a way.
A
So yeah, I mean it's just a signal to like the, the disruption and the impact that TikTok shop has made in the E commerce space. Right. Like it's, it went from just like videos of people dancing to people buying products and now people buying like theme park tickets, probably movie tickets, probably like event tickets or. Yeah, concerts. Yeah. And so it's, you know, it's, it's nice to see on TikTok because you can see in other markets where it's matured already and see where it's getting.
B
In the US right. In Asia essentially. Right. And I thought you were going to go with this. But like I use TikTok as like a search platform in a way especially for like events or something. Like you know, we went to Paris and Disneyland Paris and it's like you type in Disneyland Paris and you get an understanding of what to look for and what people look out for. So it's like a search engine and if you can buy tickets at that point it's like all the better. Right?
A
Absolutely.
B
Yeah. Yeah. Cool. One other thing here is Deal for you days has kind of adjusted and kind of TikTok's maybe overall kind of strategy behind it has changed. Pat, why don't you dive into that?
A
Yeah, I mean we've talked about Deal for you days in the past. This usually goes head to head with Amazon's Prime Day. Right. And so Deal for you days is going up against Amazon's. I always call it prime day too. I forget what it's called, Big deals day or something in October. It's happening October 7th through the 12th. The days of TikTok funding your coupons are pretty much over. They're only offering co funded coupons for this promotion. So you have to register your products by September 25th. So you have just under three weeks now to get your projects products registered. And what it'll what you're registering them for is a co funded coupon for 15 off orders over 69 or 35 off orders over $129. So in the past they used to fund those, you know, 10, 15% off coupons for your products. Now it's moving towards these co funded models which is basically what we saw with the free shipping incentive.
B
Right.
A
They took that away. Now it's a co funded shipping subsidy. You will.
B
So when you say $15 off orders off $69, what percentage of that 15 is TikTok versus you, et cetera, do you not, do you know?
A
Yeah, they're covering half, exactly half. So $15 off you would. So if your, your product alone, it makes up for the $69 in the order they cover $7 and 50 cents. So there is a, you know, this, this does include other sellers that are part of this promotion too. So if you buy, you know, one product here for one seller and another product that's also participating from another seller to get your cart up to $69, you only pay, you know, your even percentage of whatever your cart is.
B
Right, Right. Okay. Yeah. Cool. Yeah. So this is just like a signal to come, right? Like they are how they have a relatively low platform fee of 6% and that's probably going to go up to match Amazon if not even more. But yeah, I kind of just. TikTok's adjusting rapidly and you know, that's why I guess you guys listen here to kind of get the update news. A question that we've been asked a lot recently is Fulfilled by TikTok FBT. Right. And so in summary, Fulfilled by TikTok is similar or exactly the same as fulfilled by Amazon fba. At Amazon where you ship in a whole bunch of inventory to the warehouse of Amazon, they will get the order and ship it out, fulfill it on your behalf. That's beneficial to you because it's two day shipping and you know, it's using their rates and you know, their, their storage facilities, etc. It's generally cheaper than A3PL and TikTok is rolling with the exact same thing FBT. It's very new and just like the general site. Like we get asked pretty frequently at least once a week of like hey, should we be going to TikTok Fulfillment by TikTok? And our answer right now is no because there's just so many issues that I've seen pop up with, you know, with fulfillment by TikTok, some of them being like they ship in product, TikTok doesn't recognize it's been shipped and then it's a whole cluster f trying to figure out what's going on. So I'll just say that there's some like bumps Speed bumps, growing pains with fulfillment by TikTok, anything that kind of you're seeing, you want to call out, you know, I mean, I would say.
A
The biggest thing is if they're trying to use fulfilled by TikTok to compete with Fulfilled by Amazon. The difference with Fulfilled by Amazon is, you know, this product is going to be available on Amazon prime, which means there's no cost of shipping the customer. You know, as a customer, you're not going to pay anything for shipping. Fulfilled by TikTok still charges the customer five, six dollars for shipping. Right. So that's the biggest drawback. So even if you're sending in inventory by fulfilled by TikTok, the customers still see, you know, five, six dollar shipping fee, which can well hurt your conversion rates, obviously. And there's from, you know, the, the things that I've read. There was like a whole Reddit thread about just kind of people's experiences with film on TikTok. 11 Heller was saying they, they couldn't create a free shipping coupon even if they wanted to because it was fulfilled by TikTok. So if you wanted to offer free shipping, you, you couldn't.
B
Got it. Yeah, yeah. I think, you know, right now the question is, do the benefits of fulfilled by TikTok outweigh kind of like the potential issues that come about? And right now it's like, no, if you have a really good 3pl, which most of our clients do and most brands do, it's better to stay with that because the benefits aren't worth it. Right. So anyway, quick thought on fulfilled by TikTok. Now into like kind of the meat and potatoes of like Another thing we're seeing a ton lately is these sweepstakes, right? So goalie mellow new, organic, namely goalie. Right. They are giving away a Tesla for affiliates, right? So if an affiliate reaches to certain GMVs, they are given a prize. I think it's like a million dollar mark, $500,000 mark. And it kind of the prizes go up as your GMV created goes up. Right. And we're seeing it more and more now. Like they. Well, first to say goalie executed this to extreme success. I think. You know, according to Shop plus, they're doing upwards of 300k a day on TikTok. Shop started in August. So I mean they went in with a splash and they're, they're continuing to kill it.
A
I can't escape goalie videos on my for you page right now. Every other video is a goalie product. Goalie live something goalie Related. So whatever they're doing to incentivize these creators for making content around there. Yeah, I think it's Ashwagandha. Right. Is the main product.
B
Yeah.
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Is absolutely working.
B
Yeah, yeah. So our know before our strategy was slowly seed out some products, you know, to the tune of 100, 200, or maximize that seeding out process and then having the affiliates create videos. Right. Typically that's like a one to three video to five video production that they'll do. But with this sweepstakes, it amplifies that. Right. So the drive to get those GMV numbers now manifests itself to more videos being made. Right. And so, you know, Pat, I'm taking your point here, but we have now the product in hand. That's the brand sunk cost, shipping costs and product cost. Now the name of the game is get as many videos made as possible. And so that's, you know, maybe a small reason of why this kind of is, is performing the way it does. Right now these creators are incentivized to make a ton of videos. Yeah.
A
Their only incentive through the old traditional way is not to get violations for, you know, completing your sample or whatever.
B
Right, yeah, that's their. Yeah, so they don't. Yeah, there's, there's no, there's no need to, to make any more right now it's like, let me make more. But yeah, they've done it to extreme success. I haven't. I think I did see a post of someone winning. I don't know if it's a car, but it was a pretty high amount and it was just kind of gnarly. But yeah, so I think what I've also seen in the space is Nello, which is a kind of a hydration powder, is also kind of. It seems like they're just cutting and pasting what goalie did. Right. Like have a GMB amount and then have a prize that's a derivation of that GMV amount, which kind of makes sense for their P and L or whatnot. So. But looking at Nello's numbers during this promotion, it's not hitting off as well. Right. So you know, something I haven't, you know, we haven't done yet. But talking about like what's the difference?
A
Right?
B
Like Nello has similar prizes then goalie, why didn't it hit off? So something I kind of continue to, you know, think about you is like why that is, you know, one, one.
A
Common trend I've been seeing in the goalie videos has been like comparing prices. Right. There's people like walking into CVS looking at the goalie on the shelf and showing that it's like 14, 15, 16.
B
Right.
A
Showing you on TikTok for like 8, 59 or something like that.
B
Right.
A
So they're taking that pricing strategy that we talk about all the time. Right. Keeping your TikTok shop price being the lowest out there to an extreme level. And I think the creators understand that's a winning like hook that they can use to sell the product and leveraging a price difference in their, in their content.
B
Right, yeah. So the reason for let's call it the success of goalie and not the success of Nello is maybe part of the equation of pricing where it's got to be a deal on TikTok Shop and they can only buy it there. And then when they buy on TikTok Shop, TikTok knows that that sale happened and it fuels that, you know, video even further and related videos.
A
So.
B
Yeah, good point.
A
Yeah, I love the hook of like this. It's a pricing glitch like on the back end of the Chase. Have you heard about the Chase bank glitch that happened?
B
Yeah, yeah. Getting free money. So just for people that don't know, there's kind of a trend going around where I think if you direct deposit a check that you write to yourself, it, it goes into your bank account. So I write a hundred thousand dollar check, it goes into the bank account for a hundred thousand, it shows a hundred thousand. You go into the, the branch and you withdraw a hundred thousand dollars. They'll use it to you. And I don't know how this is how long has been going on, but it's true. I've seen, I mean, I don't know, I mean, I guess so many videos.
A
On the back end now. Yeah, on the back now they're like, it's days later. It's like people crying because now they're, their checking accounts are like. Yeah, $100,000.
B
Yeah. So all to say, like, obviously this is not to stay, like not happening. For real. Like, so what, what happens is like Pat was saying they have the money in hand now they're getting hit with, you know, overdraft fees and you know, kind of like basically bring the money back and they can't, they spend it and now they're, you know, out of luck. I don't know. It's also, it's a big cluster, cluster, cluster, cluster mess that's going on.
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But it's funny how.
B
Yeah.
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People are, yeah. Tying that like con, like the, the, the current things into your. Your video hooks too.
B
Right.
A
It's a pricing glitch on TikTok shop.
B
Ah, right, right, right.
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For like eight, $9 instead of 17.
B
So, yeah, yeah, that's what I noticed more is. Yeah. So using trends in your video pricing glitch also, maybe something that we use in our strategy is having to price it cheaper on TikTok so that TikTok has that algorithm feels that TikTok algorithm. Yeah, for sure. But, yeah, yeah, I think something I also want to touch on, which we. We did a little bit. But like these sweepstakes, you also have to tread very carefully. Right. There's, you know, a lot of different ways that you could. Someone could take advantage of these sweepstakes. Right. Like, if, you know, if they're giving out prizes and, you know, how do you police who's really creating the videos and all that stuff? So if you think about doing it, you should really think about, like, the legalities of it. Like, how do you know that the video that is being made is, you know, kind of authentic and not, you know, stolen or the one who's claiming it is authentic and not, you know, some. Some random person. So, you know, it's not as simple as just cutting pasting, but I really go into, like, how deep this strategy is.
A
Even as simple as somebody, like, copying another creat writer's content.
B
Right.
A
And the original content doesn't take off, but the copy takes off.
B
Right.
A
Gets credit.
B
Right. And then.
A
Yeah, another headache.
B
Yeah. So, but yeah, it's. It's. I think sweepstakes are here to stay for sure. To see goalie's success of, you know, 300k a day for the last, you know, X number of days.
A
And so it's here. When. When did they start?
B
Like, they started. So looking at their chart, it started to rise up August 11th, and they're at 6 million in sales. So less than a month. 6 million in sales for goalie. And that's just TikTok sales. Looking at their Amazon, it's a. It's a. It's a spike upward. Right. Trend as well, where, you know, they're basically doubled. A little more than doubled their Amazon sales as well. So crazy strategy, thumbs up to that.
A
And that's kind of been the thing that we've had to talk to clients about. Right. Like, some of them get worried that, you know, they're not seeing directly the TikTok sales or the profitability on TikTok is not quite what they would like it to be.
B
Right.
A
But not thinking about, you know this video went viral. It's listing your other channels that we can't account for in the performance that we talked about.
B
Yep. The halo effect on your dot com. The halo effect on Amazon. It's, it's direct, I think.
A
Yeah.
B
You did a, a price analysis, but looking at no bs, which is that toothpaste alternative. Seeing a direct correlation between the spikes on TikTok and Amazon before and after, kind of, let's call it their TikTok campaign. They were doing 20, 22k a month after their campaign. They're doing 222k a month on Amazon. So they 10x their Amazon sales from a TikTok campaign or TikTok virality.
A
So. So even though they were maybe breaking even on TikTok, they scaled 10x on their, on their Amazon business from the.
B
Yeah, yeah. So anyway, all cool stuff. Yeah. You know, while we're, while we're talking about strategies and sweepstakes, there's nothing I've been seeing as far as strategies of, you know, we use. I think going back in the day it was like three plus shipping offer, you know, the digital marketing days of 10 years ago of like, hey, we'll give you this product for free, just pay for shipping, right. Shipping ends up being $9, $10. But that covers the price of the product and the shipping, Right. Or kind of a loss leader, if you will. So I'm seeing that more and more nowadays. And the way I'd see it is you have a product listing and one of the variants is a 25 cent product, right. So let's say the regular price is $20, the variation is a 25 cent and the shipping cost is like $10. But in totality they're maybe breaking even, losing a little bit. But now what they, what that does is you can have affiliates say, oh my God, this, I found a glitch, I found a money glitch again. Go to this product. They have it for 25 cents. Someone's going to get fired because they messed up. Buy it now. And what that does is like brand awareness to the max. All these affiliates are kind of showing it and kind of getting the sales that way. So that's something I'm seeing, a shipping offer.
A
Yeah, I love that all these tactics are kind of like coming to light. Everybody's testing all sorts of different strategies. It's really the wild west. This is like the old days of, you know, E commerce. Same thing, right. It's time to see how they all shake out and play out. And you know, there's no one true way. You know, we.
B
Oh, I want to take this time to kind of go over our background and you know, how we got to this point and you know, why you should be listening to us. So I'll start with me. So I don't know, have we mentioned this? But essentially Pat and I are high school friends. We went to school. We just graduated high school two years ago. No, I'm just kidding. We're a lot older than that. We're. I don't hope you don't mind, but we're class of 2000 high school, so we've been friends for. Oh crap, was it four, 20 years?
A
25 years, yeah.
B
Yeah. Okay. So we've been friends for 25 years. You know, our kids hang out, go to birthday parties. Pat's trying to get me camping, but I haven't, you know, caved yet. So yeah, close high school friends. That's why maybe we've gotten. I've gotten a lot of comments of people enjoying like our banter or how we kind of interact and it's, you know, just essentially two friends talking. So that's maybe where it's coming from. Myself, I'm a dad of three, happily married here in San Diego, California. Play golf just like every other kind of 40 year old around post Covid and yeah, yeah, just kind of more. More personal. We talk about our kids a lot. So yeah, three kids, eight, five and three. Boy, girl, girl. So it's been fun. Little background on my professional life. I've tried everything digital marketing. Make money online, you know, SEO websites, affiliate websites, drop shipping, chatbots. I've had dozens of ideas, dozens of domains purchased, dozens of products being brought out to light. So yeah, just kind of like digital marketing entrepreneur type deal. One of those was Amazon private label brand. I sold seat cushions. So about 10 years ago I created the Amazon private label brand. My own brand is called Perfect Posture and sold that on Amazon and grew that to seven figures in sales and then sold that business and then I had the skill set of selling on Amazon and 10 years ago or eight years ago now, not a lot of people knew how to do that. So I became the head of Amazon at a number of brands kind of leading up to Amazon strategy. One of the more mentionable ones is Tula Skincare. Pretty huge skincare brand acquired by P and G about two years ago and I was the head of Amazon there after. After, after chain of. After Tula I went to a skincare brand as well and they are actually a top five TikTok shop seller. So I was ahead of Amazon at this, the skincare brand. And during my time there, they became, you know, a top TikTok top seller. And I witnessed firsthand how awesome shop is, how amazing and kind of game changing the platform is. You know, game changing gets thrown out a lot, but TikTok shop, I feel, deserves the term of game changing. You know, adding the affiliate to the, you know, affiliate model to the viral video and have making it all easy in the background and. Yeah. So, you know, beginning of this year saw the potential of TikTok shop. You know, dove headfirst into the deep end on TikTok shop, creating this podcast. You know, I understood what made TikTok shop work. I think more importantly, as I have this kind of like unyielding fire of trying to figure out this platform and how to get ahead of, you know, the competition, which kind of is where we're at today. Right. So have the podcast, have the agency, have my own products in development. Kind of diving into the deep end of TikTok. So.
A
Yeah, yeah, I mean, that's, that's exactly why we're here. Is your kind of like non ending entrepreneurial spirit right across like all the things that, that has gone on in the last 10 years, which is kind of crazy to think about. That's been 10 years since Perfect Posture, because it feels like it wasn't that long ago, but, you know, it's been a crazy journey since then. I mean, my journey started.
B
Yeah, sorry. If you're gonna look up Perfect Posture on Amazon, it's. It was purchased and then I don't say driven to the ground, but I, like, I guess the guy didn't know how to take care of it. And there's the listings have gone down and not been that great. So it's a little disappointing there. But. But yeah.
A
What was your reasoning for, for ending Amazon?
B
It was just. Yeah, so I just had a kid at that point and then I was carrying like hundreds of thousands of dollars of inventory. Yeah. And then it's like it was at that stage where Amazon would close your store at any moment in time without any rhyme or reason. And I was like, okay, I have a new family. I have $300,000 sitting in cushions in a warehouse. Amazon can say you're not selling anymore, and then what? Right? So I had a previous life. I was a QA engineer and I had developed my own apps and the apps went up and the apps went down, like as far as downloads and money. And my lesson from that was if there's someone that's willing to buy your stuff, like take a closer look at it and see if it works. At that time, it kind of worked out. Didn't want to take that risk.
A
Yeah, yeah, yeah, yeah. Made sense.
B
Yeah. What about yourself, pal? Give me a little history. Why people will be listening to you.
A
Yeah, I mean, I've been in online marketing for, golly, almost 20 years. 2005. So that's. That was like straight out of college. You know, I got my first job at a website selling OEM motorcycle parts. Like my first job out of college. This is like my intro to online marketing. I was literally sitting there with their product catalog, looking at all the products and generating adwords, like keyword search, keyword campaigns for Google AdWords, back when it was called Google AdWords. And so that was like my first exposure to online marketing. And then since then, I kind of worked at various startups, tech companies. I worked for a casino, local casino in San Diego, doing various things from search advertising, email marketing, affiliate marketing, like Commission Junction, like the old school commission junction campaigns that they used to run Facebook meta ads and then landed on Amazon ads kind of like near over the last six years. Seven years ago, I landed a job at one of the biggest digital performance agencies in the world. They're international. Worked for. My clients included Pfizer Consumer Healthcare, so that's like Advil. Robitussin worked on campaigns for intel running their Amazon advertising. And Levi's was also another client that I helped work with. So I was sitting in there with, you know, gigantic ad budgets that were entrusted in me, making sure, you know, I spent the money correctly, was able to report on those things back to the client, making sure I'm able to, you know, tell the right stories of and put together the strategies that would spend their money in the. In the best way. And these are gigantic corporations, right, that entrusted me with their budget. So I, you know, obviously it was a lot of pressure. You know, it eventually became to the point where I was managing so many clients, it was hard to kind of keep up.
B
Right.
A
That's kind of the world of agencies. When you're an account manager, their best bet is to, you know, put as many clients on you that you can manage and see what happens, which is why, you know, you and I partnered up. We actually partnered up before that with the Amazon business. Right. As I was doing Amazon Advertising, you and I partnered up doing toiletry. I saw what you were doing with perfect posture and the seat cushions. And so, you know, you kind of walked Me through the process of designing a product, getting it sourced from China.
B
Yeah, let me. I'll go here. But, yeah. So Pat reached out to me. He's like, hey, you know, I'm in the Amazon ad space. You're. You made your product, like, teach me how to do it. And I was like, right, well, I could teach you how to do it or we could do it together. Like, we'll go half and half. You kind of. Here are the steps to follow. You execute on those steps, and I'll teach you along the way. Right? So product. You know, all the way from product. We designed the. We picked out the category, we designed the product together, we had it developed, et cetera, et cetera, all the way to selling it on Amazon. So it's like learning by fire. Yeah, yeah.
A
I mean, we did a decent amount of sales for that. That one toiletry bag. It ended up getting copied because we were getting. So us, we counterfeited our product, which is cool.
B
I was like, oh, the design of it. Wait, Ours was our unique seller because, like, when you come up with a new product, you want to differentiate and make it better. Right? So our thing was like, why don't we have, like, a detachable pack where if you don't want to take the whole thing, you can snap it on and snap it off. So, like I was saying, that was cool. And it was a feature. And then a year later, or whenever we're done, a couple months later, we saw Copycat. Exact Copycat. It might have even been this manufacturer that. But no, but, but, yeah, I blast. In the past.
A
Yeah, we did, you know, 40, 50,000amonth in sales, I think, on our best month. But it kind of became the same thing. Right. It was a lot of risk to hold inventory.
B
We had copies, like.
A
Yeah, those type of things were. Yeah, exactly. Sales kind of slowed down because we were being undercut by copycats and all that stuff. So in the end, I mean, it was still a great learning experience. And we kind of took that same approach into TikTok shop. Right. So you and I partnered up, did. Started doing, you know, managing Amazon, Amazon, FBA businesses for. For brands. The main one, huge one was Truff. Truff wasn't on Amazon. I remember you and I were sitting in that Starbucks. You had, like, said, what if we just sent, like, Nick at Truffle a DM and see what he says? Yeah, send it to him. Never heard back. And heard back, like, three months later.
B
Right.
A
Or something like that. And saying, okay, we're on Board. We need to get onto Amazon, and we're at the top of their mind, which is crazy to think about. That was, you know, how many years ago, six years ago or whatever. So we took them from no presence on Amazon. Obviously, we had some. Some help because they were on Oprah's Favorite Things, but they had to get on Amazon, had to get their listings right, help them get on, built their. Their business up and did that for a number of other brands on Amazon together. Right. And so saw that. And then as you mentioned, you. We both took that pivot to TikTok shop. You saw the. The huge potential in TikTok Shop, and now we're here, we're talking TikTok on a podcast that. I never thought I'd be on a podcast ever in my life, but we talked about it every day.
B
Right.
A
And so we're like, well, we might as well record it and put it out there.
B
Happens. Yeah, you understate it. So you said, we talk about everything, but, like, I would chat your ear off for hours or hours a day about TikTok shop. And like, hey, this strategy is doing this, or, hey, these sales are doing this, or, hey, this. It's doing this. So, like, hours a day. And I was like, well, let's just put it on podcast and. And run with it.
A
Yeah.
B
But yeah, yeah. So, you know, again, a frequently asked question we had is like, who are you guys? A little bit of background on you. What makes you guys tick? Yeah, I just wanted to share that with you guys of, like, where we're at today. I guess, you know, this podcast has been pretty awesome. A lot of inflow of kind of great brands that I've talked to and conversations started. Yeah, just looking my. You know, what I see for this podcast is, you know, being that source of, like, the latest strategies and news and just kind of keeping up to date. So people go to us for that information, and then from that, you know, relationships will develop, you know, partnerships we had. But, you know, you know, with the idea in mind that we. We want to give you, like, the latest strategies so you can execute on your own. You know, maybe we can execute for you. And. Yeah, yeah, I just kind of want to. Want to stay ahead of the curve. It's kind of like my, My, My, my mantra, I guess.
A
Yeah. Ivan's not lying when he says he wants to talk TikTok Shop, so if you hit up the slack channel, he will respond. Yep. He's all over that thing, answering questions all the time.
B
Yep. So anyway, cool.
A
That.
B
That wraps it up. Any other kind of questions, you can reach out to us on tiktokshopinsiders.com like Pat was saying, there's a slack group. You want to join in, ask some questions. A reminder to leave a review. You know, I love reading those things. And, you know, our kind of reviews are going up. And Pat, actually, I don't know what our latest number is, but I'm going to owe you a dinner.
A
I was just gonna ask.
B
Yeah, your dinner. Once we reach that 10k mark, I think it's like 9 something. 9. 9.5k.
A
So within the next almost 30 minutes.
B
Almost there to get those downloads for Pat's dinner. But yeah, man, that concludes it. Any other last, last words, Pat?
A
Nah, man. Hopefully you stay cool in this, in this heat that's coming up. Don't run your AC too high. But yeah, I mean, we're good.
B
We.
A
We've got a lot of work to. To get done.
B
Yeah.
A
This week.
B
Yeah.
A
Excited to talk about it next time.
B
All right, cool, man. Thanks, everyone, for listening and we'll catch you next time. See you.
A
All right.
Podcast Summary: "From TikTok to Teslas: Breaking Down Goli's TikTok Affiliate Strategy"
Podcast: TikTok Shop Insiders
Hosts: Ivan and Pat
Release Date: September 9, 2024
In this insightful episode of "TikTok Shop Insiders," hosts Ivan and Pat explore the dynamic strategies that are reshaping the e-commerce landscape on TikTok. Focusing on Goli's groundbreaking affiliate strategy, they dissect how innovative tactics and platform-specific features are driving substantial sales and brand growth. The discussion also delves into broader TikTok Shop developments, comparing them with established players like Amazon, and offering valuable advice for brands navigating this rapidly evolving space.
The episode begins with Ivan and Pat sharing personal anecdotes about transitioning back to the school routine. Ivan reflects on attending his middle schooler's back-to-school night, expressing nostalgia and the challenges of balancing family life with their entrepreneurial ventures. Pat echoes similar sentiments, highlighting the smooth transition for both kids and parents into the new school schedule.
Notable Quote:
"I hadn't done that since middle school myself... it's just crazy to think about."
— Ivan ([00:59])
Ivan introduces a significant development in TikTok Shop— the ability to purchase Disneyland tickets directly through the platform. Pat emphasizes that while this feature is predominantly available in Asian markets, it underscores TikTok Shop's growing influence in mainstream e-commerce.
Notable Quote:
"Know where there's money to be made on TikTok, people will find a way."
— Pat ([02:12])
The conversation shifts to TikTok Shop's "Deal For You Days," TikTok's counterpart to Amazon's Prime Day. Pat explains the shift from fully funded coupons to co-funded coupons, highlighting the urgency for brands to register their products by September 25th to participate in the upcoming promotion from October 7th to 12th.
Notable Quote:
"They're only offering co-funded coupons for this promotion."
— Pat ([04:52])
Ivan brings up the increasingly popular Fulfilled by TikTok (FBT) initiative, drawing parallels to Amazon's Fulfilled by Amazon (FBA). Pat discusses the current challenges with FBT, including persistent shipping fees for customers and issues with order recognition, ultimately advising brands to continue using reputable third-party logistics providers (3PLs) over FBT at this stage.
Notable Quote:
"You will still be charged a five, six dollars for shipping... which can hurt your conversion rates."
— Pat ([07:20])
A central focus of the episode is Goli's innovative use of sweepstakes to motivate affiliates. Ivan explains that Goli is offering high-value prizes, such as Teslas, to affiliates who achieve significant Gross Merchandise Volumes (GMVs). This strategy incentivizes affiliates to produce numerous videos, driving substantial daily sales.
Notable Quote:
"They're giving away a Tesla for affiliates... more affiliates are incentivized to make a ton of videos."
— Ivan ([08:09])
Pat and Ivan compare Goli's effective strategies with Nello's less successful attempts. They identify that Goli's approach, which includes aggressive pricing and leveraging TikTok's algorithm, has resulted in impressive sales figures, outperforming competitors like Nello who have not replicated the same level of success.
Notable Quote:
"They’re keeping your TikTok shop price being the lowest out there to an extreme level."
— Pat ([12:12])
The hosts discuss how creators utilize pricing discrepancies and trending content—such as highlighting "pricing glitches"—to attract attention and drive conversions. Pat gives an example of comparing TikTok Shop prices with other retailers, creating compelling content that resonates with viewers.
Notable Quote:
"It's a pricing glitch on TikTok shop for like eight, $9 instead of 17."
— Pat ([14:32])
Ivan and Pat caution brands about the complexities of running sweepstakes, emphasizing the need for authenticity and legal compliance. They discuss potential pitfalls, such as content theft and ensuring that only genuine participants benefit from the promotions.
Notable Quote:
"There's a lot of different ways that you could... someone could take advantage of these sweepstakes."
— Ivan ([15:48])
Towards the end, Ivan and Pat share their extensive backgrounds in digital marketing and e-commerce, establishing their credibility. Ivan recounts his journey from building the "Perfect Posture" brand on Amazon to managing major clients like Tula Skincare. Pat adds his experience in collaborating with Ivan on various Amazon projects and transitioning their expertise to TikTok Shop.
Notable Quote:
"I felt, you know, this is game changing... TikTok shop deserves the term of game changing."
— Ivan ([23:37])
In their closing remarks, Ivan and Pat encourage listeners to join their free Slack group, utilize available resources, and leave reviews to support the podcast's growth. They reaffirm their commitment to providing the latest strategies and fostering a community for brands to thrive on TikTok Shop.
Notable Quote:
"We want to give you, like, the latest strategies so you can execute on your own."
— Pat ([31:00])
Key Takeaways:
TikTok Shop's Expansion: Beyond physical products, TikTok Shop is enabling purchases for services and event tickets, signaling its robust growth.
Promotional Strategies: TikTok's "Deal For You Days" presents significant opportunities for brands, though it requires strategic planning due to changes in coupon funding.
Fulfillment Options: While Fulfilled by TikTok offers potential benefits, current challenges suggest that maintaining third-party logistics providers may be more advantageous.
Affiliate Incentives: Goli's use of high-value sweepstakes effectively boosts affiliate engagement and sales, a strategy that other brands can emulate with careful execution.
Pricing Tactics: Aggressive pricing and leveraging platform-specific content trends can significantly enhance product visibility and conversion rates.
Legal Considerations: Brands must navigate the complexities of sweepstakes to ensure authenticity and compliance, safeguarding both their reputation and customer trust.
Hosts' Expertise: Ivan and Pat bring decades of collective experience in digital marketing and e-commerce, providing listeners with credible and actionable insights.
This episode of "TikTok Shop Insiders" offers a comprehensive examination of effective strategies within TikTok's e-commerce ecosystem, making it an invaluable resource for brands looking to maximize their presence and sales on the platform.