Individuals starting a business or launching a dropship business on TikTok can benefit from TikTok Fulfillment to handle the logistics of order processing. It ensures a smooth transaction process for customers, enhancing the effectiveness of your TikTok shop. Thus, you can concentrate on creating engaging content and business growth. In this article, let’s explore how to use TikTok Shop Fulfillment to increase your sales.
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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.
Benefits of TikTok Fulfillment
Now that you know what TikTok fulfillment is, let’s dive into the benefits of Fulfilled by TikTok (FBT).
Increase sales
When you sell and fulfill through TikTok Shop, customers feel comfortable ordering right within the app. Plus, they get an extra layer of security with FBT’s built-in customer protection program. Let’s remember that happy customers mean more sales.
Fast shipping process
With seamless TikTok Shop fulfillment processing, orders can be delivered on the same day or the next day. Products with a ‘Next Day’ badge ensure delivery to the customer’s doorstep the following day, provided the order is placed before the cutoff time.
Viral success
FBT takes care of the logistics, and you concentrate on creating engaging content and growing your audience. This combination can contribute to the overall success and potential virality of a TikTok business presence. Furthermore, FBT seamlessly scales fulfillment to handle unexpected order surges, ensuring smooth operations even when your content goes viral.
>>> Read more: UGC TikTok: What brands can get with real-life content?
Efficient customer service
The customer feedback and rating system on TikTok provides transparency and valuable insights for both merchants and customers. Users can share their experience with review videos, comments or leave a satisfaction remark on the products, allowing others to make informed decisions. This transparency fosters a stronger customer community and encourages merchants to provide better customer care services.
3 Types of TikTok Fulfillment
Fulfilled by TikTok just got launched in the UK. However, you don’t need to fret! Because you still have other options to ensure smooth order fulfillment for your TikTok Shop:
Fulfilled by TikTok (FBT)
This is the official fulfillment option 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. 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
This is the traditional way of fulfilling orders, where you handle everything from storage to shipping.
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)
This is a hybrid option where you outsource your fulfillment to a third-party logistics company (3PL). Some 3PLs of TikTok Fulfillment you can consider collaborating with are PiPak, ShipBob, and ShipHype,…
Pros of 3PL method
- Scalability: A 3PL can handle your fulfillment needs as your business grows.
- 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.
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
- You send your inventory to designated FBT warehouses strategically located across regions.
- FBT 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.
- Fast delivery options, like next-day delivery in some regions, further elevate the customer experience.
Stage 5: Post-Delivery Support
- FBT handles returns and exchanges, minimizing your workload and ensuring customer satisfaction.
- You receive detailed reports on inventory levels, order fulfillment, and customer returns, providing valuable insights for business optimization.
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 master TikTok Fulfillment
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.
Run sales events
With FBT, you can fulfill large orders even during a sudden surge in demand. This means you can organize flash sales and generate numerous orders quickly. This is an effective method for attracting new customers and rapidly boosting your sales.
Furthermore, running TikTok ads in combination with flash sale can be a strategic and powerful approach to boost engagement, drive sales, and create a sense of urgency among your target audience. However, managing and optimizing an ad campaign takes much time and effort, so you can cooperate Mega Digital to help you scale your campaign effectively based on your budget and goals. Besides, we can also continuously monitor and optimize your campaign performance to ensure you’re getting the most out of your ad spend.
Overall
To conclude, TikTok Fulfillment has emerged as a game-changer for logistics. So, seize the opportunity to embrace TikTok Shop Fulfillment to unlock your brand’s success. Besides, you should explore the world of TikTok Advertising to enhance your visibility on the platform.
