TikTok Shop: How to Prepare for Viral Demand

In this article, learn about: 

• How TikTok Shop works  

• Steps to sell on TikTok Shop 

• TikTok Shop seller fees and compliance requirements 

• How to prepare your supply chain for viral trends 

Social media is no longer an avenue for simply sharing status updates, pictures, or memes with friends. It’s also a virtual marketplace where users can discover and buy products directly within the apps.  

On platforms like Instagram, Facebook, and Pinterest, sellers can create digital storefronts that allow users to discover products within the apps. One step further than that is TikTok Shop, which allows individuals or businesses to sell products directly within the app while leveraging TikTok’s massive user base and content creation tools to reach potential buyers. TikTok Shop launched in the United States in 2023 and has generated $9 billion in GMV in just its first sixteen months. 

On social shopping platforms, purchases are less often influenced by the comparison shopping that takes place in a brick-and-mortar store. They are more heavily shaped by influencer and peer recommendations. Retailers like Walmart and Amazon are building robust affiliate programs that give influencers a commission for sales that occur through their recommendations.  

This new wave of retail, also called Social Commerce, is changing the retail landscape. Even if a product isn’t sold via social platforms, it can still go viral, creating demand and quickly straining supply chains that aren’t prepared for such a surge.  

In this article, we’ll discuss how TikTok Shop functions, how TikTok Shop sellers can succeed, and how all suppliers can take steps to prepare their supply chain for viral demand.  

Related Reading: How to Sell on TikTok Shop: Tips, Tricks, and Strategies for Sellers 

How Does TikTok Shop Work? 

TikTok Shop exists within the TikTok app, and allows users to find and purchase products through:  

• Shoppable videos 

• Livestream events 

• The Shop tab 

There are three primary parties that TikTok Shop does business with: Sellers, Creators, and Partners: 

• Sellers: The businesses that sell their product via a shop. 

• Creators: TikTok users, like influencers, who create content to promote products to their audience (for a commission).  

• Partners: Developers, talent agencies, and other service e-commerce service providers that help sellers and creators succeed on TikTok Shop.  

TikTok Shop is also building a robust transportation network throughout the United States. Fulfilled by TikTok (FBT) is TikTok Shop’s in-house fulfillment service that handles the logistics for sellers. FBT offers storage, packing, and shipping from nine fulfillment centers across the United States. This program also provides 3-day shipping on qualifying orders, providing a competitive edge to sellers who opt to use FBT.  

How to Sell on TikTok Shop 

Anyone can apply for TikTok Shop, as long as they have all the necessary information to join. There’s no minimum number of followers required to start a shop. A business could join TikTok for the first time and still apply for a shop.  

To join TikTok Shop, simply apply for a shop using the following information:  

Individual applicants will need: 

• Account info: TikTok account, email address, and phone number 

• Identify verification info: Driver’s license/passport and last four digits of tax ID 

• Payment info: Merchant category info and W9/W8-BEN form/US TIN 

Corporate applicants will need:  

• Account info: TikTok account, email address, and phone number 

• Identify verification info:  

  • Business name 

  • Employer Identification Number (EIN) 

  • Registered business address 

  • Last four digits of tax ID 

  • Legal name, DOB, and residential address 

• Payment info:  

  • Merchant category code 

  • W9/W8-BEN Form 

  • Related person’s info 

  • Entity type 

After applying with all the required information, applicants can expect to receive email confirmation in 2-6 days. Upon approval, link your TikTok account to your shop to start selling. This process, called “binding,” can sometimes be glitchy. If you have multiple TikTok accounts, it can be helpful to log out of other accounts you don’t intend to bind with the shop before attempting.  

TikTok Shop has a variety of tutorials and guides on how to succeed as a seller, ranging from how to create shoppable videos to how to match with creators to promote your products.  

TikTok Shop Seller Fees 

There are no setup fees for creating a shop on TikTok. However, seller fees are deducted from each purchase as a cost of doing business with TikTok Shop. There are two main types of fees, both of which are deducted after a successful delivery of an order: 

1. Platform Commission Fees: Commission fees vary based on the category of each product and whether or not the seller participates in the Bonus Extra Program (BXP). As of July 15, 2025, TikTok Shop commission fees are as follows: 

2. Transaction Fees: These fees are deducted from fulfilled orders as a fee for processing orders on TikTok Shop. The rate as of September 2025 is 2.18%.  

For a complete list of TikTok Shop seller fees, see TikTok Shop Academy’s Introduction to Seller Fees.  

TikTok Shop Seller Compliance 

Like most retailers, TikTok Shop monitors seller performance closely to ensure adherence with business policies and positive customer experiences. To stay in good standing with TikTok, sellers should regularly monitor: 

• Shop Health: This page allows you to monitor your shop’s health metrics and any violation records.  

• TikTok Account Health: This page allows you to monitor any violations that creator accounts linked to your shop may have incurred.  

TikTok Shop uses Violation Points to notify sellers of any breach of policy or standard. The quantity of points assigned depends on the severity of the infraction. In addition, the accumulation of points will result in various penalties as sellers reach what TikTok shop refers to as Violation Point Milestones.  

Note: These violation points reset 90 days from the time they are issued.  

*Refers to platform benefits like new campaigns, user growth activities, free shipping subsidies, and others. 

In addition to the violation penalties listed above, TikTok Shop sellers may also incur additional seller fees from compliance issues. These deductions can occur from: 

• The cost of return shipping for issue with product or shipping 

• An order that is empty, fraudulent, or not like the product description 

• Product is considered counterfeit 

• Product is defective 

• Cost incurred from a dissatisfied customer (if the seller is responsible) 

How to Prepare Your Supply Chain for Viral Trends 

Even if you don’t sell products via social platforms, your supply chain isn’t immune to the impact of viral trends. For example, an influencer may recommend your product organically, and you see a sudden surge in demand overnight. If you’re not prepared (within reason), such a big opportunity can quickly turn into a nightmare.  

So what can you do to prepare?  

Invest in a Resilient Supply Chain 

A resilient supply chain is flexible and prepared for change, with visibility that allows you to pinpoint where things are going wrong. This doesn’t mean being able to anticipate every viral trend, rather having systems and procedures in place that allow your business to pivot quickly if demand increases or even if emergencies arise.  

Some key strategies to building resilience into your supply chain include:  

• Diversifying sourcing: Have multiple sources for things like raw materials, manufacturing, and/or packaging materials to avoid a single point of failure. 

• Monitoring trends and performance: Track individual SKUs and sales velocity to spot shifts in demand early. Use this data to inform demand forecasting, helping you anticipate potential spikes and make proactive inventory and production decisions. 

• Build contingency plans: Have contingency plans to address potential challenges such as shipping delays, increased fulfillment demand, or the need for buffer stock on high-demand items. 

• Increase supply chain visibility: Ensure you can have visibility across your entire supply chain, from manufacturing lead times to inventory levels, so you can quickly identify and remedy efficiency gaps or problem areas.  

Whether it’s viral trends or natural disasters, fostering a resilient supply chain can help your business mitigate issues or sometimes avoid them altogether.  

If you’re still caught off guard by a sudden surge in demand, don’t panic. It’s an amazing opportunity to go viral—even if you can’t meet demand immediately, clear communication with your customers, fast order fulfillment, and transparent updates can help your business capitalize on the trend without disappointing buyers. 

Rescue Your Revenue with SupplyPike 

Managing retailer deductions doesn’t have to be complex. SupplyPike offers cutting-edge software to help suppliers dispute deductions, maximize cash flow, and uncover critical data insights.