TikTok dropshipping can be a viable way to make money online. Today, TikTok has become more than a video-sharing app - it has also become an ecommerce platform for sellers aiming to showcase products to potential customers.
According to WallarooMedia, TikTok now has over 1.1 billion users and is available in 160 countries. SEMRush also reports that it's now the 6th most popular social media platform in the world. That said, experts see TikTok will continue to grow in the coming years and so we can expect to see more dropshippers there.
In this feature, we look at the reasons why you should consider TikTok dropshipping, the pros and cons of the business model, how you can launch your own dropshipping store, and more. Towards the end, we also give you info on an alternative online business model that's sure to bring you a better income than being a dropshipper on Tik Tok.
Why You Should Consider TikTok Dropshipping
You should consider TikTok dropshipping because TikTok is one of the best social media platforms for ecommerce. Although it was primarily known as an app for sharing dance videos and viral challenges, the user base has since evolved and has also become an avenue for online business owners.
In December 2023, TikTok made headlines after successfully generating over $10 billion in global consumer spending. According to Forbes, this makes TikTok as "the only non-gaming app to do so." The service continues to rise in popularity as a platform for both buying and selling. In fact, the viral hashtag #TikTokMadeMeBuyIt has hit over 88.6 billion views as of this writing.
On Google Trends, the search term “tiktok dropshipping” has shown an upward trend starting in January 2022. On the week of December 31, 2023 to January 6, 2024, it reached a peak value of 100 interest over time.
No wonder, marketers from across the world are jumping on the TikTok bandwagon. As the competition increases, it will become more challenging to run and maintain a dropshipping store on the TikTok platform. It's a window that won't always remain open and you never know how long it will be until a new trend emerges. So you need to move quickly to stay ahead of the curve and make money.
Pros & Cons Of TikTok Dropshipping
Pros
Access to a massive online market. The platform has reached over 1.5 billion monthly active users in 2023.
The Lookalike Audience feature uses algorithms to help you reach wider audiences who are potentially interested in your products.
Insane engagement rates. According to studies, 67% of users say TikTok inspired them to shop even if they weren't planning to do it.
The opportunity to collaborate with popular TikTok influencers to boost your reach further.
TikTok is compatible with online shopping. Sellers can share their online store's link in their bio or utilize the swipe-up feature to lead users to their site.
Compared with Facebook or YouTube, TikTok ad campaigns are comparatively more affordable over time in terms of CPM.
Cons
With the large user base, your TikTok dropshipping business will face fierce competition.
TikTok has a history of suddenly removing advertisements. According to Statista, the platform removed around 8 million ads in the second quarter of 2023 “due to account accounts.
You can only target mobile users because Tik Tok isn't compatible with desktops.
Minimal to no customer support.
TikTok Shop does not allow sellers to access customer information, making it hard for business owners to maintain databases and target repeat buyers.
Attracting organic traffic and followers on TikTok may take a while. Initially, you'll have to rely on paid advertising and marketing tactics.
How To Create A TikTok Account For Dropshipping
Creating a TikTok account for dropshipping is free. You just need to download the app from the App Store or Google Play on your mobile device and do the following:
From here, you can opt to switch to a TikTok Pro Account with the following steps:
Follow the prompts to complete your account set-up, and you're all set.
How To Set Up TikTok On Your Shopify Store
To set up TikTok on your Shopify store, take the following steps:
Pro Tip: If you're having trouble connecting, log in to your TikTok account in a new tab on your desktop browser and hit refresh. Then go back to Shopify and retry the link to TikTok.
Go back to Shopify and press the 'Connect' button. You will be taken to a data-sharing page where you can decide what or how much data to share with TikTok. Give TikTok all of your information but ensure that your privacy policies are up to date to stay protected. Your TikTok Pixel and tracking will be setup automatically if you setup your account using these instructions. Once you're done, you can start making money with TikTok dropshipping.
Pro Tip: Make sure that you have a Business Account set up. This is the only way you can set up the TikTok pixel. You need it to track your ROIs, retarget website visitors and followers, and create more targeted campaigns.
What Is TikTok Pixel?
TikTok pixel is a code you can install on your website to track specific events on the platform and what ads are getting the most sales. There are 15 types of TikTok pixel events. Each one corresponds with an action a potential customer might take on your Shopify website. TikTok events include:
- Add Payment Info
- Add To Cart
- Add To Wish List
- Click Button
- Complete Payment
- Complete Registration
- Contact
- Download
- Initiate Checkout
- Place An Order
- Search
- Submit Form
- Subscribe
- View Content
- Custom
TikTok also has a TikTok Pixel Helper tool, a Chrome extension that can test your pixel and ensure it's working.
- Add the TikTok Pixel Chrome Extension
- Open a new tab in your browser
- Here you paste your tracking link followed by: ?dbgrmrktng
The TikTok Pixel Helper can track the status of your pixels and verify that your events are receiving data. You can optimize your pixel to gather data on your followers or see how far they go in your sales funnel with things like location, demographics, interests, etc. But stay on brand and incorporate trending sound and interactive add-ons to engage your viewer and drive traffic to your online store.
Types Of TikTok Ads To Scale Your Dropshipping Business
You can use TikTok Ads to scale your dropshipping business. TikTok provides a self-serve advertising platform that allows you to create 15-60 second videos and get more eyeballs on your dropshipping product listings. TikTok ad costs start at $10 per CPM (cost per 1000 views). You need a minimum budget of $20/day, and a total spend of at least $500 to get started with TikTok paid ads. Options for TikTok ad types include:
In Feed Ads Video
Native news feed for TikTok users listed on the 'For You' page
Brand Takeover
Your message takes over the screen for a few seconds before turning into an in-feed video ad
Spark Ads
You can sponsor popular organic content for your winning products
Image Ads
Place image ads in videos that appear via TikTok's news feed apps (BuzzVideo or TopBuzz )
Video Ads
Full-screen videos of 5 to 60 seconds that show up in a user's 'For You' feed
Pangle Ads
Can be integrated with TikTok's native and banner ads
Carousel Ads
Include up to 10 images and appear in TikTok's news feed apps
Branded AR Content
Can also occur as branded stickers, lenses, and other types of AR content so TikTok users can use them in their videos
Hashtag Challenge
Found in the 'Discovery' section of the app and is perfect for interactive and user participation
Sponsored Influencer Content
Uses sponsored content from influencers
Pro Tip: Your content doesn’t need to be perfect. Keep your content a little raw and unpolished. Keep in mind that the platform is fast-paced and viewers want new content now. Plus the more you post on TikTok and the better you highlight your dropshipping product's solution (in action), the more you increase your brand awareness.
It also means your TikTok video gets more chances of going viral online. Consider engaging in influencer marketing by partnering with creators. Doing so can boost your view rates by 193%. You should also pay attention to these stats when considering your style and ad type to fully capitalize on the platform and achieve the highest ROIs for your ad spend:
- Ads with an emotional element on TikTok comprise 50% of the best-running ads on the platform in .
- Vertical ads see a 25% higher watch-through rate.
- TikTok Feta Effect: the hashtag #TikTokMadeMeBuyIt amassed over 88.6 billion views.
- "56% of users and 67% of creators feel closer to brands they see on TikTok – particularly when they publish human, unpolished content," says Bryan Thoensen, Head of Content Partnerships at TikTok.
How To Create A TikTok Ad Campaign
Creating a TikTok Ad Campaign can take your TikTok business to the next level. To set up your own campaign, choose your campaign objective. You have three options for this: awareness, consideration, or conversion). So determine what your business goals are. Do you want more conversions or website traffic? Do you want to promote your video content?
Once you determine your objective, you need to set your campaign budget. This can be done in your TikTok Ads Manager account:
- Go to create an ad, click Campaign> Create.
- Next, set up a Campaign Name & Budget: here, you have two options: No Limit (no restrictions on your ad delivery at the campaign level) or Daily Budget/Lifetime Budget (limits the daily spend or total spend of all the ads within your campaign).
From here, you create an Ad Group that allows you to choose:
Ad Placements: Automatic or manual
Ad Details-Promotion Type: App install or website
Display Name: Brand name or app name
Profile Image: Shown with your ad
Category: Pick the best one for your promotion
Ad Tags: You can add up to 20 tags (keywords) to get better visibility among potential customers
User Comment: You can turn comments on or off
Video Download: viewers won't be able to download your short video ads if it's off
Target Audiences: You can create or exclude custom and lookalike audiences to narrow your audience by demographics, age, device, gender, carrier, interests, etc.
Budgets & Schedules: A minimum $20/day budget, continuous or timed ad schedule
Goals & Bids: You can pick your bidding and optimization opt-ins, including the use of third-party tracking tools like PipiAds to monitor the performance of each ad group
Also, you can choose to have a single ad or multiple ads within each ad group. That way, you can compare the delivery of various ads. Study which ad techniques attract the most customer orders. You can eventually ditch or redo ads that aren't bringing the desired results.
Ultimately, the goal is to get as many people to see your ads as possible. You definitely need to have a winning product and effective TikTok marketing strategies to improve your exposure and potential ROI.
How To Maximize Your ROIs With TikTok Ads:
For the most part, you don't have to reinvent the wheel. Instead, you can find and take inspiration from competitor ads that are doing well. You can search the platform using a free Chrome extension called Sort for TikTok, which filters the top videos for you. Again, you don't have to copy their strategies entirely but you can borrow elements, including their hashtags.
Also, the secret to running successful TikTok ads is to focus on a broad audience instead of a specific one. So the more your ad appeals to the masses, the more chances you get to connect with potential customers. This can then result to viable leads.
Where To Find Winning TikTok Dropshipping Products
Finding winning TikTok dropshipping products requires extensive product research on your end. For example, you can use Google Trends to determine search interest of specific products and keywords. Additionally, TikTok For Business Creative Center is a free resource for discovering data on the "latest trends, ad examples, and best practices".
As you do your research, look for products that fit these important criteria:
- 3X markup minimum with a great profit margin.
- It needs to have WOW factor to capture audience attention.
- The niche is broad enough to sell to the masses (A lot of people need to want to buy this product).
- Easy to market by making TikTok videos (For example, its easier to create videos for jewelry or wireless hair curlers than personal saunas).
Of course, you can also use the TikTok platform filter for precise searches. You can view the most viral videos of all time for certain product and look up to see which ones are going viral. For best results, check out popular hashtags such as #TikTokMadeMeBuy It, #AmazonFinds, and #Unboxing.
Another idea is to leverage a third-party spy tool like Minea or PiPiAds. These services pull ads actively running on TikTok. Of course, you may also use Facebook ad or Pinterest to find out trending products. Set your filter for ecom platform Shopify, date, and country location to access relevant data.
With that, you can immediately test products and see which ones work best in your TikTok dropshipping business.
Where To Find Suppliers For TikTok Dropshipping
You can find suppliers for TikTok dropshipping by checking out companies like Megagoods, SaleHoo, Spocket, and Sunrise Wholesale. Dropshipping suppliers take care of all the order fulfillment process. So you need one that offers high-quality inventory and fast shipping times. In 2024, Chinese suppliers just won't cut it. Delayed shipping times can be a concern plus the prices can be too high. So you need to consider US dropshipping supplier options for your business.
Ideally, you'd want to work with more than one supplier, so you always have access to a wider inventory. To choose the right supplier, look for things like:
TikTok Dropshipping Supplier Checklist
You can find other suppliers directly by doing a Google search. You can even spy on other dropshipping businesses and see which suppliers they're using by doing a Google or reverse image search. Tools like DSers also allow you to import AliExpress listings and connect with multiple suppliers you can use to source certain products.
Conclusion: Why Local Lead Generation Is A More Viable Way To Make Money In 2024
TikTok dropshipping is all the rage right now, mainly because it's easy to start and doesn't require huge upfront costs. However, you'll need to move fast if you want to make good money from the business model. As mentioned, competition can be a real challenge. Finding winning products is never easy as well, especially since there are numerous sellers out there offering the same items. As a TikTok dropshipper, you also need to find reliable suppliers that can guarantee quality products and quick shipping. Ultimately, earnings can be inconsistent since your revenue is determined by your total product sales.
I've done dropshipping in the past and I know it's not an easy to make the business model work. I eventually decided to quit and focus my attention on my local lead generation company. With lead gen, you are not a middleman. Instead, you are a digital real estate owner offering your services to local entrepreneurs who need leads for their business websites.
Case in point, I make passive income from my Grand Rapids tree care website as my client happily pays me $2,000 per month for the leads I bring them. Since I own multiple sites, my total income as a lead gen expert goes up to $52,000 a month.
I also run a local lead generation coaching program that's been around since 2014. We teach proven concepts that still work to date and we give students a detailed roadmap on how they can potentially succeed in the lead gen industry.
Great article Ippei. I've been trying to learn more about the drop shipping biz in hopes to branch out and sell stuff online. Content like this is exactly what I am looking for. Consider me a reader here on out. Hopefully I can learn enough to quit my day job and work on my own full time.
Great article, it provides a clear and concise overview of the potential for starting a TikTok dropshipping business. The tips and strategies mentioned are useful and can help entrepreneurs get started on the right foot. The emphasis on building a personal brand is particularly noteworthy, as this is an important aspect of success on the platform. Overall, a great read for anyone interested in the e-commerce space.
Hey Abu! Thanks for taking the time to comment. Glad to hear you enjoyed the article. Are you a dropshipper? Any tips for our readers?
I think the article on https://ippei.com/tik-tok-dropshipping/ is a great resource for anyone looking to get into dropshipping on TikTok. It breaks down the process step-by-step and offers some helpful tips and advice on how to succeed. It's definitely worth a read if you're interested in trying out this type of business model.
Thanks for sharing, glad you found value in that article. What tip stood out to you the most?