TikTok Fulfillment Explained to TikTok Shop Sellers [2024]

TikTok is well-known for driving product popularity and inspiring purchases, but merely selling on the platform isn’t enough for sustainable revenue. To effectively meet increased demand, you need to optimize your TikTok fulfillment processes, which can be challenging without adequate resources. But don’t worry! In this guide, I’ll explain everything you need to know about how to fulfill TikTok Shop orders.

What is TikTok Fulfillment?

TikTok Fulfillment is a new fulfillment program offered by TikTok Shop to simplify the order fulfillment process for merchants selling on the platform. It takes care of the entire logistics flow, from storing your products in TikTok’s warehouses to picking, packing, and shipping them to customers.

How Does TikTok Fulfillment Work?

TikTok fulfillment operates like a well-oiled machine, taking the logistical burden off your shoulders and delivering smiles to your customers’ doorsteps. Here’s how it works:

Stage 1: Inventory Storage

In the first stage, you send your inventory to designated FBT warehouses strategically located across regions.

FBT then receives and carefully stores your products, ensuring proper inventory management and security.

Stage 2: Order Processing

When a customer places an order through your TikTok Shop, the details are seamlessly sent to FBT.

FBT’s sophisticated system identifies the closest warehouse holding your product and triggers the fulfillment process.

Stage 3: Picking and Packing

Trained FBT personnel accurately locate your product within the warehouse. They carefully pick and pack the item in secure packaging to ensure safe delivery.

Multiple quality checks are conducted to prevent errors and ensure product integrity.

Stage 4: Shipping and Delivery

FBT partners with reliable shipping companies to deliver your orders efficiently.

Customers receive real-time tracking updates, keeping them informed throughout the process.

Stage 5: Post-Delivery Support

FBT handles returns and exchanges, minimizing your workload and ensuring customer satisfaction.

You will receive detailed reports on inventory levels, order fulfillment, and customer returns, providing valuable insights for business optimization.

3 TikTok Fulfillment Options for Sellers

Sellers have three options to fulfill orders placed on TikTok Shop:

Fulfilled by TikTok (FBT)

Fulfilled by TikTok is an end-to-end order fulfillment service offered by TikTok Shop. With FBT, you store your products in TikTok’s warehouses, and they handle everything from picking and packing to shipping and customer service.

This allows you to concentrate on growing your business while TikTok handles the logistics behind the scenes, ensuring your customers receive their products quickly and without complications.

To be eligible for FBT:

• Businesses need to be based in the UK and serve customers in the UK.
• Each package must not exceed 30kg in weight or 31.5 cubic liters in volume.

Pros of the FBT method

• Fast and reliable shipping: FBT offers same-day or next-day delivery in many regions of the UK.
• Convenient: You don’t have to worry about storing or shipping your products yourself.
• Customer protection: FBT provides built-in customer protection, so you can be sure your customers are happy.
• Marketing boost: Your products will be eligible for promotion on TikTok, which can help you reach a wider audience.

Cons of the FBT method

• Fees: FBT charges fulfillment fees, which can be higher than if you self-fulfill.
• Limited control: You have less control over the shipping process and customer service experience.
• Not available in all regions: FBT is currently only available in the UK.

Self-Fulfillment

You can also fulfill your TikTok Shop orders on your own without relying on a third party.

This is the traditional way of fulfilling orders. In this case, TikTok will provide shipping labels through your account, but you’ll need to manage all other aspects, including inventory storage, order packing, preparing shipments, and coordinating with the carrier for delivery.

Pros of the self-fulfillment method

• Lower costs: You can save money on fulfillment fees by self-fulfilling.
• More control: You have complete control over the shipping process and customer service experience.
• Flexibility: You can choose your shipping carrier and packaging materials.

Cons of the self-fulfillment method

• Time-consuming: Self-fulfillment can be time-consuming, especially if you have a lot of orders.
• Logistical challenges: You need to have the space and resources to store and ship your products.
• Customer service burden: You are responsible for handling all customer service inquiries.

Third-party logistics (3PL)

If the Fulfilled by TikTok isn’t available in your market yet, you can fulfill your TikTok Shop orders with the help of a third-party logistics partner. In this case, a third-party logistics provider (3PL) will manage storage, picking, packing, and shipping for orders made through your TikTok Shop.

However, it’s important to understand that this fulfillment option does not offer the same benefits as Fulfilled by TikTok.

Some 3PLs of TikTok fulfillment you can consider collaborating with are PiPak, ShipBob, ShipHype,etc.

Pros of 3PL method

• Expertise: 3PLs have the experience and expertise to handle complex fulfillment needs.
• Flexibility: You can choose a 3PL that offers the services you need, such as warehousing, pick and pack, and shipping.

Cons of the 3PL method

• Costs: 3PLs charge fees for their services, which can be higher than self-fulfilling.
• Less control: You have less control over the fulfillment process than you do with self-fulfillment.
• Finding the right partner: It’s important to find a reliable and reputable 3PL that is a good fit for your business.

What Fees Are Associated with TikTok Shop Fulfillment?

TikTok Shop imposes charges on merchants for warehousing, shipping, and additional services like labeling, pre-packing, and leaflet insertion.

4 FBT fees consist of:

• Receiving fee
• Warehousing fee (No charge for warehouse storage if stock aging is under 30 days)
• Fulfillment fee
• Packing materials fee

The packaging estimate is determined by the size and dimensions of the item, and provided does not include VAT. While the fees mentioned represent the majority of charges that sellers may face, a comprehensive list of fees and Value Added Services can be found in the complete rate card available here.

However, if you have further inquiries, please input your product details in the form which TikTok provides “Estimate FBT Costs For Your Product.”

Tips to Utilize TikTok Fulfillment for Sellers

If you’re looking to make the most of Fulfilled by TikTok, here are some strategies for leveraging it to gain an edge with TikTok Shop.

Offer fast shipping choices

FBT presents an excellent opportunity to impress your customers with swift order fulfillment. Sellers who utilize this service can provide accelerated fulfillment options like same-day processing and next-day premium delivery. You can outpace the competition by offering express shipping choices and ensure your customers receive their orders promptly.

Utilize customized badging

Utilizing customized badging for your products can enhance brand visibility and appeal to potential customers. Custom badges, such as “Free Shipping” or “Limited Edition,” can catch the eye and encourage more clicks on your products.

By integrating these badges into your TikTok Shop, you can effectively communicate value and differentiate your offerings, ultimately driving higher sales.

Create flash deals

Flash deals are an effective way to drive immediate sales and engage your audience on TikTok.

With FBT, you have the capability to manage high volumes of orders, even during unexpected demand surges. This allows you to conduct flash sales and generate a significant number of orders in a short period.

Wrap-up

In conclusion, TikTok fulfillment offers a powerful way for sellers to streamline their order management and enhance customer satisfaction. By leveraging services like Fulfilled by TikTok and optimizing your shipping strategies, you can significantly boost your sales potential. Through this blog, you now have the insights needed to effectively navigate TikTok fulfillment and elevate your business to new heights.