Making money on TikTok hinges on how thoroughly you understand this sector. Drawing on hands-on experience, this article will comprehensively break down profitable strategies, investment costs, end-of-year trends, and key pitfalls to avoid across all current TikTok markets, helping you navigate the TikTok e-commerce landscape more steadily.
01
TikTok Market Analysis & Selection
With TikTok Shop now available in so many countries, which one should new entrants target for greater success? Let's map them out chronologically:
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Late 2021: The UK market (first to open).
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2022: Six Southeast Asian countries-Thailand, Malaysia, Indonesia, the Philippines, Vietnam, and Singapore.
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Mid-2023: The U.S. (widely recognized).
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Late 2024: Spain.
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2025: Sequentially, Mexico, the EU Five (likely France, Germany, Italy, Spain, and Poland), and Japan.
For newcomers, this long list may feel overwhelming-but it's simpler than it seems. Just categorize markets into two groups:
1.
New markets (TikTok Shop available for <1 year): Examples include Mexico, Japan, and the EU Five. These markets have abundant untapped product categories, making it easier for beginners to capture the first wave of opportunities.
2.
Established markets (TikTok Shop available for >1 year): The U.S., UK, and six Southeast Asian countries. Competition here is fierce; opportunities lie in hyper-specific niches.
02
Strategies for New TikTok Markets
The core of succeeding in new markets boils down to product screening-not just "product selection."
In newly opened TikTok Shop markets, the biggest opportunity for beginners is this: If you sell a product no one else is selling, you'll easily capture the first wave of profits. Most categories in new markets are wide open-a strategy we used successfully during the early days of TikTok Shop in the UK and U.S.
Selection criteria:
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Products in categories with broad local demand.
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Prioritize the "mama & baby" demographic.
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High price difference, with gross margins exceeding 50%.
Testing methods:
After filtering products using these criteria, list them in your store and test performance via product cards(search traffic from the mall-new markets often allocate generous mall traffic initially). Once you identify promising products, amplify reach through short videos and other channels.
03
Strategies for Established TikTok Markets
Established markets are rife with hidden pitfalls-far trickier than they're often made out to be. There are two primary models here: TikTok Shops(selling directly) and the TikTok Affiliate Program(earning commissions by driving sales for merchants).
(1) TikTok Shop Model
TikTok Shops are riddled with risks. Success depends on three critical factors:
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Supply chain depth: In the U.S. market, for example, after two years of development, prime categories are already dominated by Amazon power sellers. Without supply chain advantages, how can new entrants outcompete them?
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Capital strength: Preparing inventory requires more than just "a few hundred units." While initial stock may cost only a few thousand yuan, scaling to 10,000 orders could require nearly 400,000 yuan in capital.
3.
Traffic channels: The biggest drain on profits. TikTok Shops rely on five traffic sources: product cards, short videos, paid ads, live streams, and influencer collaborations.
Breakdown of traffic channels:
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Product card traffic: In mature markets, this is mostly reserved for large sellers-one product link needs thousands or tens of thousands of sales to qualify. Plus, product card traffic accounts for only 10%-20% of total platform traffic.
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Organic short-video traffic: The most critical channel today. Despite TikTok's 1 billion+ daily active users, its e-commerce user base is smaller than Douyin's. Converting casual entertainment traffic into shopping traffic requires high-quality short videos-a key focus of TikTok's strategy over the past year. (Interested in how to create such videos? Feel free to consult.)
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Paid ads: TikTok has fully transitioned to GMV Max, automating ad targeting and forcing creators to compete on content quality and quantity. Ultimately, this circles back to mastering short-video production.
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Live-streaming traffic: Currently, live streams contribute less than 20% of TikTok Shop traffic. Success heavily depends on the host's English proficiency, sales skills, and cultural understanding of Western audiences. Without these, live-streaming setups are costly, hard to scale, and unlikely to outperform short videos in ROI.
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Influencer collaborations: A common pitfall. Many new sellers, unable to create effective short videos themselves, partner with influencers-but here's the reality: Most TikTok influencers are amateurs who don't understand e-commerce. They often rely on "volume over quality" (e.g., whitelisting 100 products to create 100 videos in a month, gambling on luck). Top-tier influencers are scarce, fiercely courted by established sellers, and prefer promoting products with proven sales records-not untested new links. Why would they bother with your unproven product?
The correct approach: First, master selling via short videos-refine your entire process from product selection to content creation. Once you have a base of sales, thencollaborate with influencers. Provide them with detailed creative briefs (highlighting your product's unique selling points) to guide their promotions. Otherwise, spending hundreds of thousands to partner with influencers will yield little return.
In short, for TikTok Shops in mature markets: Prioritize traffic channels beforelaunching. Combine direct sales expertise with influencer partnerships and paid ads-that's the winning formula.
(2) TikTok Affiliate Program (Influencer Collaboration)
A highly recommended model for new entrants in mature markets: Earn commissions by creating short videos that drive sales for merchants. This lets you practice content creation while deepening your understanding of TikTok.
Key recommendations:
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Preferred market: The UK. Recently, its Affiliate Program has seen significant growth, and it offers more stable account management and payment processes compared to other markets.
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Two keys to success:
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The right product: Choose categories with high commissions, broad appeal, and strong demand.
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60/100 content quality: Clear value propositions + authentic local aesthetics (lighting, set design, editing that resonates with local tastes). One of our students sold $150,000 worth of products with a single video-all thanks to meticulous attention to authentic details.
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Startup costs: Primarily for account creation and verification. Approximately ¥30,000 for the U.S. market, ¥10,000 for the UK.
04
TikTok E-Commerce Trends for the Second Half of 2024
New markets will continue to enjoy category dividends in the near term, but they'll gradually mature into established markets next year.
In the second half of 2024:
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Mature market TikTok Shops will compete for traffic via GMV Max, with winners being those who master content creation and diversify traffic channels.
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In the Affiliate Program, "remix teams" (those reusing others' content) will be phased out. Success will favor small, refined teams focused on original content creation-these teams stand to profit handsomely.
In summary, in TikTok e-commerce, short-video capability is the linchpin of sustained profitability. Only by continuously improving content quality and addressing this weakness can businesses thrive in the long run.
Translation Notes
1.
Terminology Consistency:
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"小黄车" (TikTok's shopping cart) is translated as "TikTok Shop cart" but simplified to "TikTok Shop" in context, as "Shop" is the official term for TikTok's e-commerce feature.
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"精选联盟" is rendered as "TikTok Affiliate Program," aligning with global e-commerce terminology (e.g., Amazon Associates).
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Cultural Adaptation:
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"宝妈人群" (mama & baby demographic) is localized to "mama & baby demographic" to resonate with Western parenting culture, where "mama" is a common shorthand for mothers.
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"原生感强" (authentic local aesthetics) is translated as "authentic local aesthetics," emphasizing the need for content that feels natural to the target audience (e.g., lighting, set design familiar to U.S./UK users).
3.
Tone & Readability:
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The original text's conversational and motivational tone ("速看," "少踩坑") is preserved using phrases like "Check Out... Now" and "avoid pitfalls."
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Technical jargon (e.g., "GMV Max") is retained but contextualized to ensure clarity for non-experts.
4.
Structural Clarity:
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Section headers (e.g., "01 市场分析与选择") are formatted with bolding and numbering to mirror the original's hierarchy, enhancing readability.
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Lists and bullet points are used to organize complex information (e.g., market timelines, selection criteria), mirroring the original's scannable structure.
