← TikTok Shop Insiders
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- [00:01]
A
Welcome to TikTok Shop Insiders podcast, your source for actionable news, trends and strategies.
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If you want to build a thriving.
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Brand or Creator presence on TikTok shop.
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B
This is your essential listen. Let's get started. All right. Hey everyone. Welcome to TikTok Shop Insiders podcast, your source for the latest news and strategies for TikTok shop. I am your host, Ivan, and we have my good friend Pat here. What's up, dude? How you doing?
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A
Hey man. What's going on? It's been super busy.
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B
Yeah, I was going to say, have you been busy?
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A
Yeah, I mean, luckily like private home life is nice and like in the formula, but ignite life has been like definitely ramping up over the last two, three weeks, which is probably why we're so late on this podcast.
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B
Yeah. So apologies we haven't kind of recorded on our schedule of two weeks. Just been extremely busy on this side onboarding clients, getting a lot of client wins, kind of seeing the strategy that we're sharing with you, kind of, you know, see the results of it, right. Getting, getting those, you know, $100,000 months and you know, cold starting brands to success. So it's been really cool to see super busy, but ultimately we're kind of seeing the results. So it's pretty cool. Yeah.
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A
Yeah. I mean, you, you said your neighbors are on vacation or something. Like you guys don't have that same type, type of vacation schedule with them.
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B
Yeah, so likewise our, our, my kids are still in school. For those that aren't aware in California or maybe a lot of places, it's kind of year round and there's a thing called a fall break, which is new to me. So they have two weeks in the middle of fall where it's essentially vacation. And apparently all my neighbors are going to Hawaii, so our kids go to a different school. But yeah, it's so new to me. Fall. Fall break. I wish I had that when I.
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A
Yeah, I had year round when I was little too. And then like would hate it when I had to go back to school and all my friends are still off for summer. But then I would get that fall break, which is nice.
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But yeah, yeah, it's cool. I think I would rather take it because sometimes summer seems so long, you know, it's like.
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Yeah, for sure.
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Yeah. So for sure. Even if you're just staying at home, but gives you an excuse to go places. But we have a pretty awesome news. We've been talking about this on and off, but 10,000 downloads, we efficiently reached that plateau.
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A
Yes.
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B
Yeah, Pat, Gets his dinner. I'm actually gonna. We've been talking about this, but taking the wifeies out to go to a nice dinner here in San Diego, probably downtown somewhere. So, you know, shout out.
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Shout out to the audience for continuing to listen.
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B
Yeah, yeah.
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I mean, I had no idea when we started. Obviously, I say it every week that we ever get to 10,000 downloads, so it's pretty amazing to. To see that we hit this mark now.
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B
Yeah, I never thought. I don't even know the significance of 10,000 downloads. I know after seeing podcasts, download numbers and length of time, we are up there on the top tier. Obviously, we're on the back of a pretty hot topic of TikTok shop. But, yeah, again, like Pat was saying, it's a testament to those who are listening and appreciate you giving the great feedback. One thing that I get a lot from of people texting me Pat, is like, our chemistry and how we talk to each other. It's like we're friends since high school, which we are friends.
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We are high school.
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B
It's pretty cool to see and kind of translate over the microphone. We're taking that friendship, adding a little mix of TikTok shop and strategy and innovation and kind of getting this podcast.
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A
Amazing.
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B
Cool.
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But, yeah.
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Oh, you. A dinner that's coming up soon. Maybe I can ask my wife to plan it with your wife and kind of.
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A
Yeah, she's got good taste in restaurants. She knows all the hot places to eat. I have no idea. I've been like, in my little bubble in Poway of just eating whatever is two miles in my radio.
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Yeah, cool. We'll get on that. Look at that. On the calendar, a new segment that I want to introduce right now. It's called why you should get on TikTok shop. Not the best title, probably work in progress, but essentially here it's like I'm getting a lot of feedback of brands who are interested in getting on TikTok shop. And, you know, none of them know as much as, of course, know as much as me and you. But, like, this is a opportunity for me to make it obvious of. Or of us to make it obvious of why they should get on TikTok shop. We talk about it every single day, every minute of the day of the benefits. And, you know, on the calls that I have with brands, I tell them all the time of the benefits, but, you know, know, to the overall public, like, it might not be so obvious. So wanted to take this moment to. To share that, like, what are some things? And this will be an ongoing segment, right. Of, you know, why it's beneficial. So the one I wanted to lead up with was the halo effect on your.com and Amazon and other channels and even retail. Right. So you see, you start the TikTok shop process, you start to get those videos, you get a viral video made and then boom, it's off to the races. Like you get, you know, kind of some traction on TikTok shop, but maybe a little known fact is like, how big is that effect on Amazon? So Pat, what are your kind of thoughts there?
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A
Yeah, I mean, traditionally what we've seen in the past is as soon as a video goes viral and we've kind of seen multiple cases of it. Right. Like as we looked at data, as we were building our sales decks, right. We were trying to find examples of this, of explaining the benefit of TikTok shop. And we've seen multiple cases of like, you know, there's 20, 30% lift anytime a video goes viral on TikTok. You kind of see that lift in other channels. And so that's definitely a benefit that can be easily overlooked. Especially if you're kind of like in the zone of just looking at your TikTok sales. You have to look at kind of what the effect is outside, like even your D2C site because maybe people are more comfortable buying on Amazon or buying on your DTC versus buying on TikTok, which they've never purchased from.
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B
Yeah, so another way of looking at that is like lifetime value. Right. So you're getting the exposure on, on TikTok Shop, you're getting those videos and then they buy your product for the first time. Well, what about your catalog? They're going to expand their catalog if they like your product. So a lot of it's like new to brand, especially if you're like in the supplement or beauty category or kind of repurchase category. Like if they buy a supplement, they're probably going to buy again or there's a, like there's a certain percentage that are going to buy again. So that's, you know, kind of a key factor here of like an extra benefit of selling on TikTok Shop. We talk to some brands and when they talk about TikTok Shop, they're very concerned with the profitability. Right. So it's like, well, I'm not making any money on TikTok Shop. If I get a sale, it's all going to the commissions, it's all going to, you know, fees, which is obviously the right thing to ask. But like I also Ask you to take into account the halo effect, the lifetime value. Those are huge. One example that we've pulled up is there's a toothpaste brand called no BS or knobs. N o B S Toothpaste brand. And you know, we have our Amazon tools of revenue and we have our TikTok shop tools of revenue and you could see an exact replica of that sales growth, you know, week over week. When there's a success on TikTok shop, you see their Amazon sales go up. Just to give you a frame of reference, like before, quote unquote, their TikTok campaign, they were doing about 22k a month. After their TikTok campaign, they're doing 227k a month on Amazon. Right. So their Amazon business 10x from their success on TikTok trout. So yeah, just kind of maybe not, you know, just putting it up, up to, you know, for you guys to take into account, like there's an halo effect.
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A
And we've seen like crazy strategies like from brands trying to do this right. Like everything seemed from offering their product at like $0.20 or something and charging $5 for shipping as like being the loss leader for that effort to go viral. It's like that $5 chicken at Costco. You go in for a $5 chicken but you stay for everything else in the store. And so kind of that same idea.
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B
They put it way back, you know, kind of get you in the door seeing other things. So yeah, just, you know, obviously wouldn't want you to take a loss on a sale, but you have to take holistically, what's the strategy? How does it, you know, play into everything? Agreed. So yeah, yeah, kind of why you should get on TikTok shop. I'll probably have a snazzy jingle made, but, you know, want to get the info out there, diving into the news. Pat, you easily lid this up. There's a couple, you know, updates here.
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A
Yeah, some big ones that came through this week. We got that email from TikTok across seller, across all the seller platforms was they sent an email to all the sellers saying they're going to be lowering their referral fee.
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B
Right.
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So we've been talking about the referral fee being at 6%, plan to go to 8%, but it's stayed at 6% for now. TikTok is going to lower those referral fees from 6% to 3% if you're using shop ads. If that sale came in on a video that was on shop ads, the referral fee gets cut in half from 6% to 3%. So they're incentivizing brands to use TikTok shop ads, obviously. And this last started on September 25th and it goes through the end of the year. Obviously incentivizing people. They're expecting to have a massive Q4, so they're putting a lot of eggs in their basket, their Q4 basket this year. I'll pause there. Obviously we've never seen Amazon ever lower their fees ever. So this is a new strategy.
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B
Yeah. So this is just saying, this is TikTok saying, hey seller, we're going to give you a break if you advertise. So AKA hey advertise. They're trying to maybe grow their advertising wing, get people more, you know, using that, that part of it. But ultimately, yeah, it's to the bottom line. Right. It's 6% to 3% on sales that are generated from ads. So pretty cool. I mean like you said, Amazon never did anything like this, not even remotely close. TikTok just moves super fast and tests a lot of things. So it's kind of crazy to see. But yeah, we'll be, we'll be obviously, you know, this obviously says like, okay, well let's set some more ads up, let's get some more codes. Let's try that out.
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A
Yeah, Shop Ads. TikTok Shop Ads has definitely been a push because I, you know, as we've mentioned it before, we don't see the organic views that we used to six months ago. Right. You put up a video, easily a thousand views. We don't see those organic views anymore. We're lucky to break 500 views now for videos that go up. So they're definitely pushing on, on TikTok shop ads on all, on all fronts.
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B
Right.
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A
Kind of in the same vein of Q4. Black Friday Cyber Monday campaign is now open for product registration. Two big discounts that they have running are two co funded coupons. So the days of TikTok funded coupons are basically done unless you're special. Like some clients of ours managed to get funded coupons they didn't even know about. But for Black Friday summer Cyber Monday they're doing a 20% off co funded coupon for the weeks leading up to Thanksgiving. So from November 13th through the 28th, which is Thanksgiving and then a co funded Coupon from, for 30% off from November 28th through December 2nd. So black from Thanksgiving to Cyber Monday. So for how the co funded coupons work is, you know, TikTok would pay for 20 off. For example, TikTok pays 10% of that discount, the seller would pay the other 10% of that discount. So you split, split the cost of the discount overall. So it's a good way, you know, it's another incentive for, for, for brands to put their deals on TikTok shop because you know TikTok is going to pay for half of that discount for you. So that's more money to your bottom line if you're selling on TikTok shop.
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B
Yeah. So just to clarify, if the Coupon is for 30%, TikTok is going to pay for 15% and you're going to pay for 15% of that total. 30%. Right, cool. And then just to repeat, co funded coupons, 20% total. TikTok shop will fund half of it. And the date there is hold on, 1113-1128 and then the 30% is 1128-12 too. So I mean you can look it up in your emails. TikTok likes to send a ton of emails. So it just means search up Black Friday.
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Yeah, it's, it's under, if you're in seller center, it's under your marketing and campaign section. So you can find those. Very cool.
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All right. Up to the meat and potatoes of this episode. And I wanted to talk about like the seller's journey and we're onboarding a lot of brands. We're, you know, what we call cold starting a lot of brands. Right. Going from zero sales to lots of sales on TikTok shop. And you know, there's awkward phases within this whole spectrum and so I kind of want to drill down on it like what you can expect or if you're in these phases, like kind of what, what to think about and what are maybe a light at the end of the tunnel, if you will. Right. So there's two main phases, well actually three that I'll go over, but two main ones. And the first one is like setup, right? And making sure that you know, you're all your ducks in a row, like your, your pricing is set, your commission is set, your affiliate outreach, you're getting all those videos made and it's kind of like four to six weeks of just like everything we've taught thus far, right? Just getting your products optimized, sending affiliate messages out, sending products out to affiliates, giving them a brand brief about your product, how to talk about it and just setting it up for success, right? Then you start to get these videos back. Then you start to get, you know, you know, some great videos, some not so great videos. And you know, at this point in Time you're sending out 200 units, maybe 300 and up, and you're not getting a ton of sales. And it's kind of just this weird, awkward phase of like, wait a minute, I sent out a ton of product and I'm not getting a lot of sales. Like, wtf, right? What's going on? So this is kind of like, I call the awkward phase, right? And it's, like, not easy to stomach, but a journey of a thousand steps starts with the first one or something like that. So it's kind of like something you have to do. Pat, what do you think about this? Taking back as many clients as we onboarded? This is an essential, rough part.
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Oh, yeah, absolutely. I always get the question of, where am I sitting? We're in week three, samples gone out, videos, some videos are coming back. Where are the sales? It's. It's kind of one of those trust the process type of things, right? Like, because we've seen it before and, you know, thankfully, our brands trust us that we've had this experience with other brands, and it's. It's kind of part of the process. It does take some patience. It doesn't, you know, you're not going to go, you know, blast off to $100,000 in sales just overnight. But, I mean, it could happen theoretically on TikTok shop, but this is. You're kind of waiting for that moment to happen. So, you know, Ivan loves my. My Tinder analogy. This is that part where you're. You're getting the samples out and these videos are coming back, some good, some bad, but at the end of the day, it's just all content about your product, people talking about your product. And it almost creates this effect of, like, I've seen it on TikTok because there's so much content out there about your product. So that's one benefit of the space.
- [15:46]
B
Just to expand on the Tinder analogy, It's, you know, if you look at TikTok shop, success is like a fire, right? Each one of these videos that you're getting generated, good or bad, is talking about your product. And you're kind of. Each video is a piece of Tinder putting into, like, a fire pit and, like, a piece of Tinder. You get hundreds of pieces of Tinder with, like, not much spark. But, you know, one day there's going to be this video that's like, wow, this video is getting hundreds of thousands of views and sales. All of a sudden, like, holy crap. And this is what I call about the. The holy crap. Phase like this when we, you know, in our slack channels are like, oh, you know, this video is generating this many sales and kind of it. It just explodes on its own. But an external thing that happens is now that that video is exploding, it's getting the eyeballs. Well, now it's resurfacing all those other pieces of videos that are talking about your product getting retargeted to those people who viewed those other videos. So it's kind of like a big bonfire. A piece of, you know, a Tinder, like, just ignites with that one viral video. So, yeah, that's kind of like a, you know, phase one of, like, trust the process. And then phase two is like, oh, crap, like this. Hold onto your horses. Like, let's go. You know, to the tune of $10,000 days and, you know, kind of. And you build on that. So, yeah, this is a glorious day for. For our clients when we see it. But yeah, Pat, we want to do what you.
- [17:13]
A
Yeah. So, I mean, part of phase one, too is as we're getting these videos back, we're vetting all the videos that are coming in, right? Earmarking the ones that we think do great, you know, great content. They sell the product well, they explain the product well, but they're just not getting the views right. And so like I mentioned earlier about TikTok ads, we earmark these videos for ads. We request the spark codes. So when it comes time, right, when that first video goes viral and we want to start feeding the fire with additional videos that gotten better ad dollars also help. So in this process, we're also checking off and making sure we know what videos we like to. To run in ads down the road.
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B
Right. And another thing about. So the next phase is like the oh, crap phase. Something sparked. Well, now for me, the bigger thing to look at is like, proof of concept. Like, it works like putting videos out there and getting that spark. Well, let's just repeat the process. More videos gets a bigger fire and kind of sparking it. It's like proof of concept. It worked already. Let's do more of it. So it's really, you know, bear with it. Like, these are normal steps and. Yeah. Kind of other. Other phases to look forward to. You know, once we get that initial phase of success, then you start looking at, okay, will you do more of the same at scale, you start to integrate your lives, right. And then you start to affiliate. You cultivate those affiliate relationships, right? So they have, you know, that. That spark video that. That. Or you have that video that. That did really well. Well, now you reach out to that affiliate, having them make more videos, incentivizing to make. Make more videos, and. Yeah. You know, coaching them, you know, sending them more products, et cetera. So kind of like next stages. But that first part is the hardest and, you know, have to trudge through.
- [18:57]
A
Yeah. Generally that creator will start making more videos on their own because they're. They start seeing sales take off, and so they're trying to double down on. On the success of their one content. Right. And that also trickles into other creators because they start to see the product, like, gain sales. Right. They see that GMV for that product start to take off, and then it becomes much easier for us when we're doing more outreach. Yep. When we talk about a product that's already made, you know, $50,000 in sales in the last 30 days, they want to jump on that train too. And it kind of starts this snowball effect of more videos being created and we provide sample, like, better examples. Right. This is a video that worked. This is a video that went viral. Maybe you want to kind of mimic their layout or content in a certain way. Yeah, the structure. The video structure in a certain way. And then you end up getting better videos that kind of fall into that formula that sold the product the first time. Yeah.
- [19:47]
B
Way I talk about this with clients is the flywheel. So TikTok Shop flywheel. And. And you get that spark, you get those sales and translates to reviews. Right. Well, that social proof of sales and reviews, not only does it kind of affect the customer and if they buy it, but also the affiliates. Right. They see those sales and reviews and like, wait a minute, I could latch onto this. It's catching fire. And so it's a flywheel that's getting pushed more and more, and you just want to build on that as much as possible to keep it going. So, yeah, great point on that. But, yeah, I think, you know, that wraps it up for today's episode. You know, just a friendly reminder. If you enjoy our content, definitely leave a review. Just shows us that we can kind of keep doing this stuff, sharing our knowledge and all that. Follow our socials. TikTok shop insiders. Just Google it and we'll be up there. And then. Yeah, that kind of signs it off for today, I guess. What's the next goal? 100,000 or you want to do how many views we reach? 10,000.
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A
25K maybe. Sounds like the next check mark. Or maybe 50k. I don't know.
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B
All right. Yeah, well, I'll think about it, but. Cool.
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A
Yeah. At what point do we go on vacation? Like we pay for a vacation?
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B
Oh, man, that's a good question. I don't know. I don't know. I don't know. What's a. It's a good question. I'll think about it later.
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A
Start bribing all these listeners this time.
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B
I know. Yeah. Way to put me on the spot. I like it. I like it, but. Yeah. Pat, thanks for your time today. And, everyone, thanks for listening. Catch you next time.
- [21:27]
A
See you.