Fulfilled by TikTok (FBT)
Last month, TikTok launched Fulfilled by TikTok (FBT) in the UK, which streamlines the process of selling on the platform. Merchants can use the TikTok Shop in a similar way to Amazon’s Fulfillment by Amazon (FBA). According to TikTok, FBT houses, packs, and ships goods to consumers on behalf of merchants.
Merchants who sign up for FBT can get the following:
- Same day fulfillment for orders placed by 7pm Monday through Saturday.
- Next business day premium delivery.
- Customer feedback and ratings via an instant messaging service and customer service.
- Reduced time of delivery.
In order to use FBT, merchants sign up and provide TikTok Shop with products that will be kept in a warehouse. They have the option to use FBT for a selection of their goods or all of them. The service provided is available to merchants who are based in the UK and delivering to customers in the same region. There are additional eligibility requirements. The packages cannot be heavier than 30 kg or a cubic volume of 31.5 cubic liters per shipment. TikTok does indeed charge fees for the service, which are listed on this page.
TikTok’s New Fulfillment Service
Andrew Hutchinson wrote an article on the subject of Fulfilled by TikTok (FBT), which was published in SocialMediaToday. “In-stream shopping has become the key revenue driver for the Chinese version of TikTok,” he writes, “and the company is determined to make it a thing in Western regions too.” Hutchinson also states that TikTok’s intention is to become part of the supply chain. They intend to do so by facilitating the sale of Chinese-manufactured goods made popular by the app’s own trends. By doing this, the social media platform can potentially persuade users to buy products thru TikTok that they will also distribute. Furthermore, TikTok has offered “free listings, free shipping, and zero commission on sales for an initial period” to various Chinese manufacturers if they give them products.
Hutchinson goes on to say that TikTok is keen to influence Western users to engage in in-stream shopping. “Live-stream commerce has become the platform’s key earner in its homeland, but Western consumers haven’t been as responsive,” he writes. The “earnings potential” is so major, especially in terms of income for creators, that TikTok maintains its focus on this initiative in markets like the UK.
FBT is still in its experimental stages in Western markets. Yet product sales by TikTok in China saw a 320% increase in 2022, per Hutchinson. And, he writes, “if TikTok’s product fulfillment drive takes off, that could become a much bigger consideration, as more users discover more products in-stream.”
Merchants Can Sell Products on TikTok
Nicole Silberstein also published an article on Fulfilled by TikTok (FBT) on Retail TouchPoints. It is titled “TikTok Continues Amazon-like Push into Commerce with Fulfillment Services in the UK.” She says that the expansion of FBT and TikTok fulfillment coincides with an upcoming change to Amazon’s fulfillment service fees. Reportedly, if you are a third-party seller and want to ship your goods independent of Amazon’s FBA, while still being included in the Seller Fulfilled Prime (SFP) program, you will have to pay a 2% fee “on each product sold beginning Oct. 1, 2023.” Apparently, sellers using SFP pay a referral fee of 8%-15% on each sale, but not an additional 2% per product.
Silberstein points out that TikTok partnered with CommentSold. They are a live-selling solution company that facilitates sales on the platform in the United States. This allows merchants in the US to “host live shopping events on TikTok from the CommentSold platform.”
The success or failure of TikTok’s FBT program in the UK and possibly other Western markets in the future has yet to be determined. However, the ever-growing popularity of the app, in-stream shopping experiences, and the affordability factor could make FBT a very attractive option for e-commerce sellers who want to sell and ship products quickly and painlessly. Amazon has been a top player in the online selling world for a long time. They will very likely remain the goto shopping platform for many years to come. At the same time, merchants are interested in what is new, exciting, or even alternative to the mainstream when it comes to sales. Is FBT in the UK or CommentSold live shopping the right choice for you as an e-commerce seller? We may not yet have enough data to form an opinion on the financial benefits. Stay tuned!
