TikTok Shop, as a highly watched e-commerce platform, provides sellers with two main entry modes: full hosting mode and self-operated mode. These two modes have their own advantages, but also face different challenges and tests. This article will explore these two entry modes in depth to help sellers better choose the business method that suits them.
1. Full hosting mode
In the full hosting mode, sellers hand over operations, logistics, after-sales and other links to the platform, and focus on product supply. The platform has become the only global controller, holding core powers such as product selection, pricing, and listing for sale. Although sellers have their own stores, their role has actually become a product supplier.
Applicable sites: United States, United Kingdom, Saudi Arabia
Suitable merchant types:
With supply chain resources (industry and trade integration, factory-type merchants or traders), with the ability to stably launch new products and deliver goods
Domestic merchants who intend to supply cross-border
Merchants with cross-border operations or experience in cross-border channel supply are preferred
Open categories: Clothing, bags, shoes, digital hardware, beauty, fast-moving consumer goods, home and outdoor
2. Self-operated model
The self-operated model allows merchants to be responsible for operations independently and have more say. Compared with the fully managed model, self-operated sellers can optimize product pages and adjust pricing in a targeted manner when traffic declines to ensure that products are better exposed. At the same time, the self-operated model enables sellers to independently control after-sales service to ensure that customers enjoy a better shopping experience.
Applicable sites: Southeast Asian sites (Thailand, Philippines, Malaysia, Vietnam, Singapore), US sites
Suitable merchant types:
Merchants with domestic and foreign e-commerce experience and intend to expand to Southeast Asian or US markets
With local warehousing and logistics capabilities in the United States, and local delivery is required
With e-commerce operation experience, the ability to establish connections with experts, and certain content operation capabilities, such as the ability to shoot and live broadcast short videos.
Open categories: Beauty and personal care, clothing and luggage, accessories and home life, 3C, digital appliances, fashion accessories, collectibles, food and beverages, jewelry and crystals, etc.
How to choose?
When choosing to enter TikTok Shop, merchants need to comprehensively consider their own resources, experience, target market, and ability to control the market. The fully managed model is suitable for merchants who want to focus their operations on product supply, while the self-operated model is more suitable for merchants who have certain operating experience and are willing to invest energy to improve product exposure and user experience.
As an emerging sales platform, TikTok Shop provides sellers with a wealth of entry options. Whether choosing a fully managed model or a self-operated model, the key is to make the right choice based on your own situation and continuously optimize and adjust strategies to achieve commercial success on the TikTok platform.