I Tried Selling on Tiktok Shop for 1 Week - My Honest Results

Summary

In this video, Trev Peterson, an experienced online seller, shares his one-week experience with TikTok Shop. He discusses the learning curve, the setup process, and his initial sales results. After failing to generate sales through organic content, he experimented with paid ads, which eventually led to $800 in revenue but at a loss due to high ad spend. Peterson pivoted to an affiliate strategy, which yielded better results with a single video generating $364 in revenue. He concludes with a pros and cons analysis of TikTok Shop, highlighting its potential, the importance of content, and the unpredictability of relying solely on viral videos for sales.

Takeaways

• 😀 Trev Peterson, with eight years of online selling experience, recently ventured into TikTok Shop and shared his one-week experience.
• 🔍 The learning curve for TikTok Shop was not as steep as other platforms, but it still required time and effort to set up and understand the system.
• 📈 Trev manually created product listings rather than using paid tools, taking a few hours to import all products and learn the platform.
• 🎯 TikTok Shop's ad account setup was seamless and appreciated for having everything in one place, unlike other platforms.
• 🚀 Organic content strategy did not yield sales for Trev, highlighting the need for a paid strategy to gain traction.
• 💰 After one week, Trev made $798 in revenue, which was considered a modest start compared to his initial weeks on other platforms.
• 📉 Trev spent $500 on ads with only six conversions, resulting in a high cost per acquisition and a loss-making scenario.
• 🤝 The introduction of an affiliate program turned the tide, with one affiliate video generating $364 in revenue, a more profitable strategy than ads.
• 📦 Shipping and logistics were identified as a significant challenge, with fulfillment not as seamless as on platforms like Amazon.
• 📉 Despite the revenue, Trev ended up with a net loss of $120.4 after accounting for ad spend, product costs, and affiliate fees.
• 🔑 Key takeaways include the potential of TikTok Shop for brand diversification, the power of the affiliate program, and the unpredictable nature of viral content.
• 🚧 The cons highlighted were the need for time investment, the complexity of shipping logistics, and the unpredictability of profits, especially in the early stages.

Q & A

Who is Trev Peterson and what is his background in e-commerce?

Trev Peterson is an experienced e-commerce seller who has been selling online for the last eight years. He started with Shopify and Drop Shipping, moved to Amazon, and in the last 12 months, he achieved over 1.3 million in sales on Amazon and six figures on his Shopify website.

What is the main goal of Trev's video?

The main goal of Trev's video is to share his one-week experience with TikTok Shop, analyze what worked and what didn't, and provide a pros and cons analysis to help viewers understand whether TikTok Shop is worth trying.

What was Trev's initial strategy for TikTok Shop?

Trev's initial strategy was to start with organic content by uploading videos to TikTok, tagging his products, and hoping the videos would go viral to generate sales without having to pay for traffic.

How much revenue did Trev generate in his first week on TikTok Shop?

In his first week, Trev generated $798 in revenue from TikTok Shop.

What was the outcome of Trev's organic content strategy on TikTok Shop?

Trev's organic content strategy did not work as he did not generate any sales from it.

How much did Trev spend on ads in his first week on TikTok Shop?

Trev spent $500 on ads in his first week on TikTok Shop.

What was the result of Trev's ad spend in terms of conversions and cost per acquisition?

Trev's ad spend resulted in six conversions with a very high cost per acquisition, leading to a loss as he was spending more than he was making.

What was the turning point for Trev in terms of sales on TikTok Shop?

The turning point for Trev was when he started an affiliate program, offering 15% commissions to affiliates who promoted his products. One affiliate's video started to gain traction and generated $364 in revenue.

What was Trev's net profit after considering all costs and revenue in his first week on TikTok Shop?

After considering all costs, including ad spend, product samples for affiliates, and affiliate fees, Trev had a net loss of $120.4 in his first week.

What are some of the pros Trev identified with TikTok Shop?

Some pros Trev identified with TikTok Shop include its newness and potential, the ability to diversify revenue streams, the powerful affiliate program, the viral effect of content, adding brand value, and the importance of content creation.

What are some of the cons Trev identified with TikTok Shop?

Some cons Trev identified with TikTok Shop include the learning curve, the need for time and effort to set up, complications with shipping and logistics, unpredictability of viral content, the necessity of profitability, and the fact that not every product will work well on the platform.

Outlines

00:00

🚀 Launching TikTok Shop: Trev Peterson's First Week Experience

Trev Peterson, an experienced online seller, shares his initial foray into TikTok Shop after a week. He outlines his background in e-commerce, including successes with Shopify and Amazon. Trev provides an overview of his sales, ad spend, and affiliate strategies on TikTok, emphasizing the learning curve and setup process. He highlights the ease of use of TikTok Shop's integrated platform and discusses his organic content strategy, which initially failed to generate sales. The video promises a pros and cons analysis to help viewers decide if TikTok Shop is a viable option for them.

05:02

📉 TikTok Shop's Learning Curve and Advertising Challenges

In this paragraph, Trev delves into the learning process required to set up and operate a TikTok Shop, comparing it to other platforms. Despite his extensive experience, he acknowledges the time and effort needed to understand the platform. He describes the straightforward account creation process, the manual product listing, and the seamless ad account setup. Trev's strategy involved organic content, which did not yield sales, leading him to explore paid advertising. After spending $500 on ads with disappointing results, he pivots to an affiliate program, which surprisingly generates $364 in revenue from a single video. This experience prompts Trev to reconsider his advertising strategy, focusing more on affiliates.

10:02

🔄 Adjusting Strategies: From Ads to Affiliates in TikTok Shop

Trev provides a financial breakdown of his first week, revealing a net loss of $120.4 after considering ad spend, cost of goods, shipping, and affiliate commissions. Despite the loss, he views it as a valuable learning experience and a strategic pivot towards affiliate marketing. He emphasizes the importance of content creation and the potential of viral videos for organic growth. Trev also discusses the unpredictability of relying solely on viral content and the need to understand how to create predictable income streams. He concludes by expressing optimism about his new strategy and the potential profitability of focusing on affiliates.

15:03

🛍️ Pros and Cons of TikTok Shop: Trev's Comprehensive Analysis

Trev concludes his video with a detailed pros and cons analysis of TikTok Shop. He highlights the platform's newness and potential, the benefits of diversifying revenue streams, and the powerful affiliate program. However, he also addresses the cons, such as the learning curve, time investment, shipping and logistics challenges, and the unpredictability of viral content. Trev discusses the importance of brand value and content creation, while cautioning that not all products may succeed on TikTok Shop. He encourages viewers to understand these factors and to continue experimenting with the platform, reflecting on his own commitment to refining his strategies for future success.

Keywords

💡Tik Tok Shop

Tik Tok Shop refers to the e-commerce platform integrated within the Tik Tok app, allowing users to sell products directly through the app. In the video, the creator discusses their experience launching a Tik Tok Shop, highlighting the learning curve and the process involved in setting up the store, which is central to the video's theme of exploring the viability of this new sales channel.

💡Organic Content

Organic content in the context of social media and e-commerce refers to posts or videos that gain traction and visibility naturally, without the use of paid promotions. The video creator mentions using organic content by uploading videos to Tik Tok and tagging products in the hope that the content would go viral and generate sales, which is a strategy to leverage the platform's potential for organic growth.

💡Paid Traffic

Paid traffic involves using advertising to drive visitors to a website or product listing. In the script, the creator discusses the shift from organic content to running paid ads on Tik Tok to boost product visibility and sales. This keyword is crucial as it marks a turning point in the creator's strategy and is indicative of common e-commerce practices to increase reach and conversions.

💡Affiliates

Affiliates are individuals or entities that promote products and earn a commission on sales made through their unique referral links or codes. The video describes the creator's experience with Tik Tok Affiliates, who started to notice and reach out to promote their products after setting up an affiliate program offering 15% commissions, which became a successful strategy for driving sales.

💡Cost of Goods and Shipping

Cost of goods and shipping refers to the expenses incurred to produce the product and deliver it to the customer. In the video, the creator provides a financial breakdown, mentioning the cost of goods and shipping as a significant factor in determining profitability. It is an essential consideration in e-commerce as it directly impacts the bottom line.

💡Ad Spend

Ad spend is the amount of money allocated to advertising campaigns. The script details the creator's ad spend of $500, which is a critical metric in evaluating the effectiveness of marketing strategies. The high cost per acquisition resulting from this ad spend led the creator to reassess their approach, emphasizing the importance of ad spend in e-commerce profitability analysis.

💡Profitability

Profitability is the ability to generate more income than expenses, resulting in a profit. The video's theme revolves around assessing the profitability of Tik Tok Shop as a sales channel. The creator concludes the video with a profit breakdown, revealing a net loss, which underscores the challenges and considerations of achieving profitability in new e-commerce ventures.

💡Learning Curve

A learning curve refers to the process of gaining proficiency or understanding in a new skill or activity. The video script discusses the learning curve associated with setting up and operating a Tik Tok Shop, indicating that even with experience in e-commerce, there is still a period of adjustment and learning required for new platforms.

💡Viral Videos

Viral videos are those that quickly become popular and are widely shared on social media. The creator discusses the potential of viral videos on Tik Tok to generate significant sales without the need for paid advertising. The concept of virality is a key aspect of the video's exploration of the power of social media for e-commerce.

💡E-commerce

E-commerce encompasses the buying and selling of goods or services using the internet, as well as the transfer of money and data to execute these transactions. The entire video is centered on the creator's e-commerce journey, particularly their experience with Tik Tok Shop as a new platform for online sales, highlighting the broader context of digital marketplaces.

💡Revenue

Revenue is the total income generated from the sale of goods or services. In the script, the creator reports $800 in revenue as a result of their Tik Tok Shop efforts, which is a key performance indicator for measuring the success of their e-commerce activities on the platform.

Highlights

Trev Peterson shares his one-week experience with TikTok Shop, providing insights on what worked and what didn't in his sales strategy.

Trev has a background in online sales with 8 years of experience, including success on Shopify, Amazon, and his own website.

He generated over 1.3 million on Amazon and six figures on his Shopify site within the last 12 months.

TikTok Shop was launched one week prior to the video, and Trev dives into his sales, ad spend, and affiliate strategy.

The learning curve for TikTok Shop is discussed, highlighting the ease of setup despite the time required to master the platform.

Trev outlines the straightforward process of signing up for a TikTok seller account and linking it to an existing TikTok brand account.

Product listings on TikTok Shop are created manually or through paid tools that sync with other e-commerce platforms.

TikTok Shop's all-in-one platform is praised for its ease of use, in contrast to the complexity of managing multiple ad accounts on other platforms.

Trev's initial strategy involved organic content, hoping for viral videos to drive sales without paid advertising.

After organic content failed to generate sales, Trev turned to paid advertising, which slowly started to yield results.

In seven days, Trev made $800 in revenue, a modest but not insignificant figure for a new platform with no prior experience.

The cost of advertising on TikTok Shop is discussed, revealing a high cost per acquisition and initial unprofitability.

Trev's shift in strategy to focus on affiliate marketing after ads did not yield a profitable return.

Affiliate marketing proved more successful, with one affiliate video generating $364 in revenue, highlighting the potential of this approach.

A complete profit breakdown is provided, showing a net loss of $120.40 after considering ad spend, product costs, and affiliate fees.

Despite the loss, Trev views the experience as a valuable learning opportunity and plans to refine his strategy moving forward.

The video concludes with a pros and cons analysis of TikTok Shop, weighing the platform's potential against its current challenges.

Transcripts

it's officially been one week of trying

Tik Tok shop today we're going to open

up the curtains and share with you guys

my results what worked what didn't work

and at the end I'm going to give you

guys a pros and cons analysis of what I

think about Tik Tok so for those that

don't know me my name is Trev Peterson

I've been selling things online for the

last eight years started with Shopify

Drop Shipping then I went to Amazon just

in the last 12 months I've done over 1.3

million on Amazon and then with that

same brand I've done over six figures on

my Shopify website and I've started Tik

Tok shop one week ago so we'll dive into

my sales how much I spent on ads how

much I spent on Affiliates my entire

strategy was I profitable and at the end

we'll break down the pros and cons so if

you guys are new make sure to subscribe

like the video drop a comment and let's

get into it now the goal of this video

is to help you understand whether or not

Tik Tok shop is worth it for you or not

and after this 7-Day test the results

are shocking and the first thing that I

want to talk about is the learning curve

required in order to get this thing up

off the ground and running so like any

platform it's going to take some time to

get used to I've been selling online for

8 years and I've done it all I've done

Shopify Walmart eBay Etsy Amazon now Tik

Tock shop and when I compare Tik Tock

shop to the other platforms I'll be

honest it's actually pretty easy but

that doesn't mean that it doesn't take

time to set up and it doesn't mean that

just all of a sudden I have it set up in

30 minutes and boom I'm printing money

there's still a lot of work and a lot of

learning required to start and I want to

set those expectations very very clear I

have a lot of experience with e-commerce

and for me like it wasn't the most

complicated thing but it wasn't like the

easiest thing either so what you can do

is go to Google type in Tik Tok seller

account and you'll sign up it's a pretty

straightforward process it will take you

about 5 minutes once you create your

account you'll need to enter in your tax

ID numbers and basically get things set

up and you'll link a Tik Tok account so

if you already have a Tik Tok account

for your brand that's super easy you

just link that but if you don't you have

to create one and then you want to link

that then from there you need to create

product listings this is a pretty

straightforward process basic

information you got a title you got your

images you got your description U you'll

put the price the UPC code and boom you

create it there are apps and tools that

you can literally sync to your Shopify

account or your Amazon account and

import all the products it is a paid

tool I didn't do that I just did it

manually and it took me a few hours to

import all of my products but I learned

the process and I wanted to really

understand how things worked from there

I created my ads account and this is

pretty seamless you literally just go in

and you hit marketing and you create

your ad account and it just links and

that's what I really love about Tik Tok

shop is everything is in one place and

it's super easy it's not like Shopify

where you're trying to connect 5 million

pixels between Facebook Instagram Google

Snapchat Pinterest like it's just all

under one umbrella and so it's pretty

simple and so once you have all that set

up you're basically ready to go to start

getting Sals and my strategy is at the

very beginning is I started to do

organic content I started to take some

of my videos and I started to upload

them to Tik Tok and you can tag your

product and if that video goes viral

well people will start seeing it and

they can start purchasing it just from

organic content so that is a huge Pro to

Tik Tok is hey you can create these

viral videos if it goes viral you can

generate sales without having to pay for

traffic but in my case it didn't work I

didn't generate any sales and so my next

option was to start running paid traffic

and this is where things get got really

interesting and I'm just going to kind

of share with you guys the results after

7 days so here it is we did $800 in

Revenue in 7 days so the organic traffic

didn't work but the the pay traffic

slowly but surely started to work and

I'm going to share with you guys a lot

of learning lessons that I basically had

throughout this entire process you're

probably looking at that number $800

$798 in Revenue you're like Ah that's

nothing that's pocket change but for me

for a brand new platform not having any

experience no previous knowledge $800

that's not terrible like I was able to

generate $800 and if we compare that to

my first week on Shopify well I know I

did a thousand times better because I

think I got maybe one sell on Shopify my

Amazon business I don't think I did $800

in a week actually I know I didn't I

probably did like $200 $300 so this is

better than Amazon but the golden

question is how are profits and we'll

kind of break that down but $800 that's

my honest results in one week and we're

going to unpack a lot of great things

that you're going to want to stick

around for so if you guys are enjoying

please like the video leave a comment uh

subscribe and let's dive into the cost

of advertising and this is a screenshot

of my Tik Tok ads manager so as I

mentioned organic content wasn't working

so I decided to create some ads and what

you can do with these ads is you can

take your organic content and just

basically boost them and you can Target

specific audiences it's pretty similar

to creating like a Facebook or Instagram

ad campaign it's probably a little bit

more simple and so you can create these

campaigns I created Five I ran them for

7 days and you can see that I spent

$500 in ads you can see my conversions

was a whopping six you can see my cost

per acquisition was extremely high and

with these numbers I was spending way

more than what I was making like I was

losing a lot of money and I'm like is

this working or am I doing something

wrong obviously I'm doing something

wrong like is this legit does it work

and so that's when I had to go back to

the drawing board so my organic content

didn't work but my paid content it was

kind of working like I was generating

some sales but obviously I wasn't very

profitable but I was like okay I'm just

going to trust the process and I'm going

to continue on and what happened next is

pretty interesting and this is one of my

favorite parts to Tik Tok shop as I was

promoting my products Tik Tok Affiliates

started noticing and they started to

reach out to me so inside your seller

account inside Tik Tok you can basically

assign affiliate percentage commissions

so that if somebody sees your product

and they want to promote it they know

okay you'll get 5% or 10% or 20% if they

make a video talking about the product

they generate a sell they'll get a

little Kickback and that's what I ended

up doing is I decided to create an

affiliate program and I said hey anyone

that promotes my product will get 15%

commissions and that's when people

started to reach out to me I had two

people reach out one person I was like

done let's do it I sent him the product

and within 2 days he got my product and

he made a video just yesterday and this

is where results started to pick up

because obviously organic didn't work

spending money on ads I'm losing money

and just yesterday I did

$364 in affiliate Revenue so this

individual one person made one video

talking about my product and it's

starting to gain some traction I'm

hoping it will continue to go up but

again this is just the 7-Day results and

one video

$400 where I spent $500 and got $400 in

sales so when we look at the comparison

I spent a lot less money on the

affiliate side and so that's when kind

of the light bulb went off and I'm like

look I don't need to be spending

hundreds of dollars on ads I need to be

focusing on getting Affiliates so that's

my strategy moving forward and so I got

a second one and I have a third one on

the way and I'm hoping that I can send

these Affiliates free product they'll

make the video they'll tag my product

and if that video goes viral then my

affiliate revenue is going to continue

to grow and grow and grow and it's a

little bit more SU sustainable and it's

going to be a lot more profitable

because I know my cost I know that hey

I'm sending them the sample and I don't

lose any money unless they generate a

sale if they generate a sale I know that

I'm profitable giving them only 15% and

so that is the strategy that I'm working

on now but I want to give you guys a

complete profit breakdown when we take

in and Factor all of those different

things so we did

$798 with those 12 orders my cost of

goods and shipping was $314 $1 so this

is one thing that we'll talk about at

the end just to con the shipping and

Logistics it's been a disaster but

anyways $314 the ad spend $500 obviously

that's kind of terrible the sample so

this is me sending the product to uh the

Tik Tok Affiliates so I sent two of them

one has made a video the other hasn't um

hopefully they they will soon so I

included the the $50 there the affiliate

fee so what they generated the 15%

they're going to get $54 in kickback

back so when you add that that up I

profited a netive

$120.4 now that number yeah that's sad I

lost money but for me I'm going to take

that as a win all day long because I

learned a ton along the way and I

figured out how to navigate the entire

platform and now I have a strategy

moving forward that I think is going to

be a lot more profitable and that's

focusing on the affiliate side of thing

the ads I'm going to dial those in I'm

going to get better content I think the

content just wasn't very good so I'm

going to optimize that a little bit but

for me brand new no prior experience

this is my first time trying it to only

lose

$120 that's not terrible and now I've

got 12 individuals that have my products

in their hand that could potentially

reorder tell their friends go buy it on

my website go buy it on Amazon the more

people that can have my product the

better and so $120 I would say is a

pretty good Learning lesson it's not too

much money loss but you know it still

stings a little bit and it motivates me

to get back to the drawing board and

continue on so that's kind of the profit

breakdown and as you just saw there's a

lot to unpack and there's a lot of

learning lessons and so what I want to

do is give you guys my last final

thoughts and give you guys a complete

pros and cons analysis breaking down Tik

Tok shop Let's dive into the first pro

and that is it's new and has a lot of

potential I think we're early on which

presents opportunity and I think it's

something that we need to capitalize is

on quick but looking at it from the flip

side the first con that I want to talk

about is it's new and there's still a

lot to learn and I think that there's

still changes that are going to be made

I think the competition might get a

little bit stronger ad costs might go up

finding Affiliates might become a little

bit more difficult and so that is again

something to consider but right now I

think the opportunity is great and I

think we're early on and the quicker you

can basically adapt this new Marketplace

I think the more you can take advantage

of it jumping into the second Pro is

it's another Marketplace so adding

another Marketplace is fantastic it

diversifies your portfolio and it adds

additional revenue streams and revenue

potential now that doesn't mean you're

going to be profitable as you saw with

my test but obviously as I continue to

optimize I hope that I become profitable

um but looking at that from the flip

side again adding a new Marketplace it

requires time and it requires effort so

this last seven days I was neglecting my

businesses because I was spending so

much time focusing on Tik Tok shop while

my other businesses are running and

working and I'm making money on it well

I just neglected that and I spent a lot

of time to lose $120 now I developed

some skill sets that I'm hoping to turn

to profits here in the future but that

is something to consider is it takes a

significant amount of time to get things

set up so understand that going into it

the third Pro to Tik Tok shop which I

think is the biggest Pro and that is the

affiliate program I think the incentives

for the Affiliates to promote your

product and the potential to just crush

it with just Affiliates I think is

astronomical I think there's so much

potential and obviously with my ads I

think there's potential I just didn't

optimize right but as you saw with the

test I was way more profitable with the

Affiliates and so building out that

affiliate base and having 50 100 of them

well you're going to start to crush it

but that leads into the con of shipping

and Logistics and that's where things

get really complicated so Tik Tok

doesn't have this figured out like

Amazon does and so either you have to

fulfill the orders yourself so you have

to be sitting in your house or your

garage or warehouse and fulfilling

orders or you can partner with a 3pl or

you can integrate your Amazon account to

Tik Tok and there was some problems with

that and so that is one con and if you

guys want to see a video on how I kind

of solve that I'm happy to do that but

that is a con fulfillment in logistics

is just not as seamless compared to for

example selling on Amazon jumping into

the fourth Pro and that is the viral

effect if you can have a video go viral

whether it's an organic post or an

affiliate post like you can generate

significant revenue and it doesn't cost

you a fortune to get exposed to millions

of people where if you were to pay like

Facebook ads or Google ads or even Tik

Tok ads to get that exposure like it's

it's just impossible so if you can have

a viral video that's what you want to do

but on the flip side it's a little

unpredictable if you're relying solely

on viral videos well you might have one

month where you crush it and another

month that you don't because you didn't

have a video that goes viral so you need

to master and understand how those viral

videos work and how you can get

predictable income where right now for

me Tik Tok shop is very unpredictable

like I I don't know if I'm going to be

profitable I don't know if I'm going to

sell I don't know if I'm going to wake

up to a bunch of sales or not so that is

uh the fourth con of Tik Tok shop is

it's just not as predictable yet jumping

into the fifth Pro is having and adding

Tik Tok shop to my brand I think it adds

a lot of brand value if I can add

another Marketplace and I can generate

revenue and I can get my product into

more people's hands from an Investor's

side if I go to sell my brand if I go to

sell my business it becomes more

valuable because I have additional

revenue streams I have additional

marketplaces and I think that's

something to note and jumping into um

that fifth con of Tik Tok shop is the

profits it does no good to sell on these

marketplaces if you're not profitable so

if you can't turn a profit then it makes

zero sense and obviously my first seven

days I was not profitable again I'm

hoping to turn that around and I think

with my strategy moving forward I will

but I did need to throw that in there

jumping into the last Pro of Tik Tok

shop is the content side of things

having content is King it's so valuable

and getting content created can be

expensive but as you're building up

Affiliates as you're getting people to

promote and talk about your product

you're just getting organic content that

you can can then use and repurpose for

other platforms which is super valuable

and again it adds more value to your

brand and jumping into the last con to

Tik Tok shop is not every single product

will work out of all the products that I

pulled from my seller account to Tik

Tock shop some just didn't work and I

haven't sold anything and there's been

two main sellers that have worked and so

what I'm thinking is there's certain

products that are going to work better

on Tik Tok than others so you can expect

every single product that if you sell on

Amazon if doing well you can't expect it

to do well on Tik Tok shop so you might

be in a situation where you can't even

sell on Tik Tok because your product

just doesn't fit and people just don't

want it but that doesn't mean that you

can't try so you need to understand that

going into it is some products will work

some products won't it's the same thing

with every platform some products just

work and some don't so it's going to

take some effort and there's that

learning curve but that's kind of the

the breakdown the pros and cons I think

there's a lot of Pros I think there's

obviously some cons as well but I'm

going to continue growing my Tik Tok

shop and I'm going to be continuing to

implement these different strategies and

I hope you guys got some value I hope

you guys learned something and if you

did let me know in the comments down

below or let me know what you want to

hear or see in the future again

subscribe share this Channel with a

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