Ecommerce fulfillment will influence the customer’s experience to a large degree. TikTok shop fulfillment was hence introduced by the social media-turned-e-commerce giant to elevate the fulfillment experience for TikTok sellers.
Fulfillment by TikTok shop is a service that combines the convenience of (reputable fulfillment partners) with effortless discoverability (via TikTok).
The ones who have taken over the ecommerce business (like Amazon) have always aimed for efficient fulfillment. Likewise, TikTok shop fulfillment delivered an all-inclusive solution to TikTok shop owners so that no seller has to look elsewhere for easy order fulfillment.
Since a huge portion of the 15 million+ TikTok sellers worldwide are solopreneurs, having a reliable brand to outsource their operational responsibility makes a massive difference in their business model.
Here’s where TikTok fulfillment comes in as a game changer. Keep reading to have a comprehensive understanding of TikTok FBT and how it works.
Quick Guide:
TikTok shop fulfillment or Fulfilled by TikTok (FBT) is the all-in-one warehousing, packing, labeling, and shipping logistics service that streamlines the entire process at a reasonable price. It simplifies business execution and lends a hand to solopreneurs so that they can channel their focus into growing their business.
FBT brings convenience to both buying and selling parties by adding certain added features. It includes,
All of this results in elevated customer experience which over time assures repeat purchases and eventually results in customer loyalty.
As an ambitious business owner, you might feel empowered to take charge of order fulfillment but FBT comes with certain benefits you simply cannot miss:
If you’re an existing TikTok shop fulfillment (FBT) user, you get a chance to cut down on 40% of your order fulfillment budget. Added perks like 90 days of free warehousing and no peak season surge. TikTok shop fulfillment also allows 3-day delivery at no additional cost for domestic shipping.
TikTok shop fulfillment provides sellers an option to protect their Shop Performance Score. It is an indicator of quality that incorporates product quality, fulfillment, and customer service response to give the TikTok shop a rating. (note: this dynamic rating system helps sellers get access to TikTok-funded promotions, gain affiliates, plan advertising campaigns, and opt for Tiktok shop ads on the platform).
We often see late dispatch, seller fault cancellation, and logistics-related issues affecting Shop Performance Score metrics. FBT will ensure your shop rating is unaffected by such logistics issues. Sellers are allowed to raise a request within 90 calendar days from the order delivery date.
In case the item in the parcel survives damage or goes missing, TikTok shop fulfillment supports sellers with complete reimbursement of loss (of up to $8).
Now, TikTok shop customers can place multiple orders from different FBT shops to meet a minimum order value of $30 and get free shipping. They also become eligible for Free 3-day Delivery. Needless to say, this makes your FBT shop more appealing to your audience as they’ll reach out for your products more frequently compared to your non-FBT competitors. In a way, it narrows down your competition as a seller.
The services are indeed quick in handling and delivery as well as customer support. In addition to that the customer support is handled by FBT members freeing sellers from added responsibilities.
The TikTok shop fulfillment (FBT) program is open to TikTok sellers in the UK and the US for the time being. This includes both aspiring sellers and established brands with certain criteria.
1. Registered TikTok Shop sellers
You must have a registered TikTok Shop account for the starter.
2. Businesses with compliant products Only
Your business must comply with TikTok’s product compliance standards. Your product must not belong to the list of restricted items.
3. Sellers with ample inventory
TikTok shop fulfillment is open for sellers retaining a steady inventory volume to keep up with consistent orders. Stock maintenance is crucial whenever TikTok gets involved in the fulfillment process. The platform aims to keep products ready to fastrack sending them over to the fulfillment centers.
For your ease of visualizing the process of fulfillment, we’ve demonstrated each of the cases for self-fulfillment of the TikTok shop:
The fulfillment process begins from the time an order is placed.
Once the order is received, sellers check their inventory to confirm if stock is available for dispatch. Sellers can monitor all of this information via the TikTok Seller Center portal.
Sellers must now pack the products according to the packaging rules. The size and type of packaging matter. It is also mandatory to follow the instructions of the logistics service provider. Avoid sending unauthorized promotional materials.
To avoid any setback, label your package with utmost security. It must contain the order number, the customer’s name and address with zip code, and the seller’s full name with address.
At this point, ensure the package is collected by the logistics provider within the stipulated time. Then, update the order status on the TikTok Seller Center. You choose “Shipped” once it is picked.
We suggest you keep an eye on the Seller Center portal to monitor the dispatched items till they are updated to “Delivered”.
Sellers send their product inventory to nearby TikTok fulfillment centers.
TikTok receives and stores the products in their designated warehouses.
Whenever an order is received, order details are sent to be fulfilled by TikTok.
FBT TikTok detects the nearest warehouse (that stores the product ordered) and here the fulfillment process starts.
Employees working at fulfillment centers of TikTok pick and pack the items. This is how you make sure all standards of fulfillment are met. In addition to that, the product package undergoes multiple checks to prevent any errors that may result in delayed transit.
TikTok fulfillment works with shipping partners like Shipbob to ensure timely delivery and customers get real-time updates about the movement of the package.
In the case of returns and exchanges, TikTok shop fulfillment handles it all. Pre and post-delivery customer service inquiries are also handled by them.
To start using Fulfillment by TikTok Shop (FBT), make sure you have your TikTok shop registered.
Step 1: Log in to TikTok Shop Seller Center.
Step 2: From Orders, click on Menu.
Step 3: Click on Fulfilled by TikTok.
It will now lead you to the Authorization Page.
Step 4: Go through the text, check the box, and click on Authorize.
It stands as proof to you agreeing to the conditions set by the TikTok shop.
Now you’ll be redirected to the Pipak Merchant Portal (a centralized control unit for sellers to track and manage their special shipping and logistics requirements.)
Step 5: Scroll down to tick the Terms & Conditions. Tap Proceed.
Step 6: Now, fill out your billing details and click on Submit.
Step 7: Now, on your Pipak Merchant portal, keep updating your Homepage.
After you link your inventory, set up shipping preferences, review and confirm your application, and wait for TikTok’s approval. You’ll be notified about the status of your application within 3-5 business days.
The main alternatives to be fulfilled by the TikTok shop are seller shipping and TikTok shipping.
As for independent shipment, you get to be the captain of your own ship.
Right after an order arrives you start steering towards the destination of shipment completion— including, packaging, labeling tracking till the item reaches the customer while a third-party logistics company you’ve chosen does the heavy lifting. The responsibility is entirely upon you.
Consider TikTok Shipping as a semi-assisted method designed to free the solopreneurs from the responsibility of label making. While you as a seller get your package ready, TikTok steps in all prepared with the shipping labels, and hands it over straight to you. However, the rest of the fulfillment depends on your choice of carriers. Although you get to choose from the options TikTok shop fulfillment avails.
The key difference between independent shipment and Tiktok shipment is the greater amount of dependency upon Tiktok’s rules and policies when you choose Tiktok shipment. Moreover, when you choose your 3PL for Tiktok shipping, the delivery time is purely dependent upon them and their pace of delivery.
If you are even on the verge of considering TikTok shop fulfillment, chances are you’d like to know the options you have and compare them. Here’s a detailed breakdown:
Feature | Fulfilled by TikTok (FBT) | Seller Fulfillment | TikTok Shipping |
Inventory | TikTok warehouses for item storage | Independently stored | N/A |
Order Processing | Completed by FBT TikTok team | Handled by seller | N/A |
Picking & Packing | Completed by TikTok fbt | Completed by seller | N/A |
Labeling | Printed and pasted by TikTok | Developed, printed, and pasted by the seller | TikTok develops shipping labels |
Shipping | Managed by TikTok | Managed by seller or 3PL delivery agency selected by seller | By 3PL option offered by TikTok and chosen by seller |
Delivery Speed | 0-3 days | Varies | Varies, monitored by TikTok |
Availability | UK and US | Wherever TikTok Shop operates | Varies |
Seller control | Limited | Full | Partial |
Customer Service | By TikTok | By seller | Partially by TikTok |
Returns | By TikTok | Managed by seller | Varies |
Marketing Boost | Eligible for TikTok promotions | N/A | Edge in TikTok shop’s algorithm |
Protection | Provided by TikTok | N/A | Partial protection |
Fulfilled by TikTok fees are upfront— decided upon its weight and size per item. Due to their per-item policy, keeping track of charges is pretty easy and transparent, especially in cases where buyers order multiple FBT items from separate sellers.
Seller fees are levied only after a delivery is complete. The seller fees are automatically deducted by FBT from the seller’s revenue in the TikTok Seller Center portal. The total charge for each TikTok fbt package includes fulfillment fees, warehousing fees, and packing materials.
Here are a few points that sellers need to consider before they opt for ‘fulfillment by TikTok’:
Refer to the rate card to understand what the fulfillment fee can look like for your product.
TikTok shop fulfillment is relatively new to the US and yet it is gaining popularity among established brands. So what better way than to learn from an experienced player?
Take, for example, the Nature Spell. A flourishing herbal hair and body care brand with growing demand due to its TikTok visibility. They joined TikTok in 2017 just to spread awareness about the brand while having a couple of sales a day. The visibility among TikTok’s massively engaged audience led to a shocking spike of 2,000 orders a day.
But what happens when you’re bombarded with orders? How did Nature Spell handle its sudden rise in demand? They did not let themselves fall short due to the overwhelming response; instead, they focused on the production and outsourced the warehousing and logistics to TikTok Shop fulfillment.
This helped Nature Spell adjust to when it grew to 9,000 orders daily.
With TikTok lending a hand and saving their time on logistics, they had enough bandwidth to focus on new product development, increasing manufacturing requirements, or chalking out marketing strategies to expand their reach.
According to Nature Spell’s co-owner Sach Gulati, implementing TikTok shop fulfillment helped them save on handling and delivery costs; this made them channel a part of their responsibility to a reliable entity. They also leveraged the Virtual Combined Listing feature of TikTok shop to creatively boost sales.
This virtual stock bundling enables sellers to add multiple products from their catalog under a single product listing.
Here are some of the major drawbacks of the fulfillment by TikTok shop service that you must know while considering it for your shop.
TikTok brings a unique blend of social media exposure and the best e-commerce practices to the game. Integrated logistics was the masterstroke that nailed the opportunity, giving TikTok shop a fresh new direction. Hence it ended up attracting sellers like Nature Spell who are willing to leverage robust warehousing and secure delivery systems as they focus on other aspects of growth.
Moreover, you won’t have to think twice before putting your products up on flash sales— FBT will have you covered. Fulfillment by TikTok helps you keep up with sudden spikes in demand, be it seasonal or for flash sales. Good for you, TikTok shop fulfillment lets you handle a part of your inventory on your own.
So, you can send a part of your inventory (containing the best sellers) to test out how it is working out for you. Or you can optimize your inventory in a way where you send out the bestselling products on the TikTok shop to be managed by TikTok fulfillment and manage the rest for self-fulfillment.
Like every platform, TikTok FBT comes with its own limitations. But what ultimately matters is if it works out for you.
Additional Readings:
TikTok strategies to boost your Amazon business
Launch a Wildly Profitable Ecommerce Business
15 E-commerce Marketing Strategy: Driving Growth in a Digital Marketplace