Do you want to sell products on the fastest-growing social media platform on the planet?

We talked to Stone Ross, the founder of TikTokDropshipping.com, to learn how he and his students have made $3M with the dropshipping business model. What’s most impressive is stores run by Stone and his students have made up to $75K in less than three months.

TikTok dropshipping offers online businesses a huge opportunity to make substantial money. The business owner can then focus on aspects like finding a reputable supplier, creating organic content, and satisfying customers.

What is a TikTok shop?

A TikTok shop is an eCommerce store on TikTok where businesses can sell their products. It works similarly to any other eCommerce store and is accessible to sellers in the TikTok Seller Center.

What is TikTok dropshipping?

Dropshipping on TikTok is simple: You use the world’s fastest-growing social media platform to sell products without storing inventory. You just focus on creating your TikTok Shop and videos to promote it; the dropshipping company handles shipping to the customer.

With dropshipping, you pay for the product after the customer orders it, which means you already know what you’ll make before you pay for the cost of goods sold.

Dropshipping Business Case Study: Done for You LLC

Stone Ross has been dropshipping for a long time. He was already a top Shopify and Facebook dropshipper when he recognized the opportunity for a dropshipping TikTok Shop and started testing what works best.

He started experimenting with different ways to find top-selling products, get a shop in front of interested buyers, and maximize profit using the dropshipping model. In just a couple of years, he’s helped generate over $3M in sales with gross profit margins of up to 80%—nearly three times the dropshipping industry average.

He explains how to set up your TikTok Shop and what to do with a small budget.

Check out our interview with him below:

Is TikTok dropshipping profitable?

According to Stone, TikTok sellers are willing to accept between 50% to 80% gross profit margins. That means you could double or triple the profit margins of most online retailers, according to data from NYU Stern’s profit margin database.

How much can you make dropshipping on TikTok?

TikTok Shops can make substantial money. Stone has stores that have made over $30K in the first month. He warns that it might take a week to a month to get your first sale, but once you find the right products, it takes off.

Using the scaling strategies and profit margins he uses means that 30K will provide $15K to $24K after paying for the products.

How to Open a TikTok Shop

Stone explained some steps you need to take before you set up a TikTok shop. You’ll need to:

1. Get a limited liability company.
2. Get an employer identification number.
3. Get a business bank account.
4. Create a TikTok business account.
5. Secure funds.

Get a Limited Liability Company

To start a TikTok business account, you’ll need a limited liability company (LLC). Depending on your preferred business conditions, you can open one in your own state or another; Stone prefers registering in Wyoming.

You can file for an LLC at the relevant secretary of state’s website or use an external provider to help you through the process.

Get an Employer Identification Number

An employer identification number (EIN) is issued by the Internal Revenue Service and is used to file business taxes and payroll. Stone recommends using this instead of your social security number.

LegalZoom

Stone says it’s much easier to get your LLC and EIN using LegalZoom. It costs a little extra, but it saves you time and, eventually, money. Stone warns that they try to upsell you but that you should reject any upselling they offer.

Get a Business Bank Account

When setting up a TikTok shop, you’ll need a business bank account in addition to your EIN and LLC. Stone suggests Chase or the bank you have been banking with the longest.

Create a TikTok Business Account

Before you can start TikTok dropshipping, you’ll need to create a TikTok business account, which you can do here. Make sure to read the TikTok Business Center rules.

Here’s the basic process:

1. Choose a creative TikTok Shop name and create a Gmail account for it.
2. Apply for a TikTok shop (normally accepted within 48 hours).
3. Set up your TikTok seller account.
4. Create shipping templates.
5. Create and upload your shop’s logo.
6. Create a TikTok account for your shop.
7. Link your TikTok account to your shop.
8. Wait for shop approval, then add your bank account.
9. Set up your affiliate shop plan.

Stone explained:

You might want to file a Doing Business As (DBA) to help legally tie your shop to your LLC.

The whole process should take a few hours of work and up to a week, assuming it takes 48 hours each time you wait for approval.

You’ll Need Funds to Sell on TikTok

TikTok dropshipping businesses do not get funds immediately. After you sell a product, you have to ship it, provide the tracking code, and deliver it. You still have to wait 11 days to get paid, but good performance can reduce that wait to four days.

Stone explained he had to pause his sales when his dropshipping business grew too fast so he could catch up with the payments. He suggests having a dedicated credit card and a slush fund of at least $500 when starting your TikTok dropshipping store.

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How to Find Dropshipping Products on TikTok

According to Dropship.io, the best way to find TikTok dropshipping products is to go to the TikTok Ads Library to view which TikTok ads have the most likes, shares, and views. This helps you identify the products that interest the most TikTok users.

Stone uses multiple ways, though:

1. Check influencers on both mobile and desktop.
2. Check the TikTok marketplace.
3. Check supplier websites to find other ideas that might do well.

You’ll also need to identify which products will have the best profit margins. To do this, you’ll need to get creative and use a process that looks like this:

1. Identify the lowest price for the product in a TikTok shop.
2. Find a drop shipper that offers the product.
3. Identify your purchase price per product and the shipping fees.
4. Use the following formula: Customer Price (step 1) – Cost (Purchase Price Plus Shipping)
5. Divide Step 4 by Step 1 to calculate the gross margin for the TikTok Shop.

Stone uses a product research template to track potential products and establish their performance. To start dropshipping successfully, he recommends posting 10 new products per day.

He also recommends reviewing the prohibited and restricted product lists to ensure that your TikTok Shop follows the platform’s rules.

Some sites you might want to use for inspiration include:

• ​Amazon
• Webstaurantstore
• eBay
• Zoro

That’s how you find the best products to sell in a TikTok dropshipping store, but you might also find it beneficial to use software like FoxLister or FastMoss to analyze winning products.

How to Connect CJdropshipping to Your TikTok Shop

One of the largest affiliate and dropshipping business platforms on the planet is Commission Junction (CJ). You can connect a TikTok dropshipping business to CJ using the following process:

1. Sign up for a CJdropshipping account. The link in the next step will allow you to sign up if you haven’t already.
2. Choose “Add Store” on the CJ authorization page.
3. Select the account type and click “Add Store.”
4. Click “Next” and select “United States,” then log in to your TikTok Shop account.
5. Complete authorization and check the store’s status.
6. Adjust the inventory sync settings.
7. Add products to your TikTok Shop.
8. Check the status of listed products on CJ.
9. Check the TikTok Shop U.S. products to see that they match.
10. Sync your store orders.
11. Pay for the orders.
12. Sync tracking numbers.

You can learn more about how to use Commission Junction dropshipping with TikTok in CJdropshipping.

How to Advertise Dropshipping on TikTok

TikTok dropshippers benefit from numerous marketing tools that make it easier to create a successful dropshipping shop. There are plenty of TikTok marketing strategies you can use, including the following:

• Create videos
• Use affiliate sales
• Send samples to creators
• Network with creators on WhatsApp
• Create TikTok ads

Create Videos

To conquer TikTok dropshipping, you’ll need to make product videos. You can be creative with them than with other strategies. Make product reviews or make them like infomercials. The more fun they are to watch, the better they might do. If you discuss price, it’s good to provide a short sale period.

Use Affiliate Sales

The affiliate sales portion of TikTok marketing is one of the most unique features of the TikTok Business Accounts. It allows you to set your standard affiliate revenue share, which is normally 15%. When you first start, Stone suggests:

Network With Creators on WhatsApp

The TikTok app lets you connect to social media platforms like WhatsApp to interact with other creators. This can be a great way to find people to create user-generated content to advertise your dropshipping products.

Send Samples to Creators

Your marketing efforts might also include shipping samples to TikTok creators in the hopes that they will share your online store with their target market. Stone doesn’t really like this approach because the costs of creating the TikTok content normally approach the amount he makes.

You might consider using this strategy in combination with WhatsApp if you have already interacted with someone you think will provide good organic marketing.

Create TikTok Ads

TikTok Ads Manager has numerous types of paid ads you can use to get users’ attention. The ads platform lets you advertise products with the following types of ad campaigns:

• TopView Ads: Formerly called Brand Takeover ads, TopView ads are the first thing people see when they open the TikTok app.
• In-Feed Ads: This TikTok ad format appears when people are scrolling through their TikTok feeds. These in-feed ads blend in more than TopView ads and require far less ad budget.
• Image Ads: You can use a single image while running ads, but many people find these annoying on a video app.
• Carousel Ads: Use multiple images in a single advertisement.

To start advertising on TikTok, sign up for an ad account on TikTok Ads Manager. The ads manager lets you create campaigns, set your bids, and create ads.

How to Make TikTok Ads for Dropshipping

You have a business account and are ready to start TikTok marketing. To create TikTok ads for your dropshipping store, you’ll need to:

1. Create your TikTok ad account.
2. Install the TikTok Pixel: TikTok Pixel is a tracking cookie you put on your online store to track viewers, clicks, and buys. You can use the information to better define your remarketing and target audience.
3. Create a new campaign: A campaign is the highest level of paid marketing and consists of multiple ad groups. You can set the goal and budget for the entire campaign.
4. Create an ad group: An ad group is a section of multiple related ads. For instance, you might want different target markets or different ad formats in each ad group under a campaign.
5. Choose the promotional type or goal.
6. Select the ad placement.
7. Select your creative type.
8. Define your target audience.
9. Choose standard or accelerated delivery: Accelerated delivery spends the budget as quickly as possible, while standard aims to make the budget last the whole campaign period.
10. Create the ad.
11. Boost the ad.

Focus on Customer Service

TikTok dropshipping requires stellar customer service to maximize the platform’s benefits. A TikTok shop is paid based on how successfully it fulfills orders.

The fewer delayed and canceled orders you have, the quicker you’ll get paid. Everyone starts with payments being approved eight days after delivery, then can move up to a three-day or one-day wait from the time of delivery.

Who pays for shipping on TikTok Shop?

According to the TikTok shipping overview, the buyer pays for shipping unless TikTok dropshippers offer free shipping. In addition, when a package is undeliverable, TikTok pays for the shipping.

Even though the buyer or TikTok eventually pays for dropshipping products, the seller must pay the dropshipping supplier before they are paid for the product and shipping.

What is TikTok organic dropshipping?

TikTok organic dropshipping uses solely free tactics to promote its products. Instead of paid ads, you create engaging videos and link to the TikTok Shop.

Some of the ways to do this include:

• Review multiple products that are cool for a specific type of event or person.
• Review a single product and how it works, then offer a sale.
• Create standard infomercials.
• Use product images with sound explaining features.

You’ll want to include a limited-time offer and a call to action with a link to your shop so people don’t have to go looking for it.

Why don’t I have TikTok Shop on my TikTok?

There are numerous reasons you might not have a TikTok Shop login. Some of the most common include:

• You don’t have a business account.
• You might be in a country outside the U.S.: Wait for them to roll out in your country.
• Your app is outdated: Ensure you have the most recent software.
• The store hasn’t been pushed to your app: Sometimes, there is a lag between creating a shop and seeing it in your app. Wait for a while, then refresh your phone.
• A VPN is blocking the usage. Either get off the VPN or change the location.

Conclusion: Start Your Own TikTok Dropshipping Business

Now you understand how TikTok dropshipping works, how to open a TikTok shop, reach TikTok audiences, create TikTok videos, and analyze your business with a dropshipping tool.

You must use the social media platform’s tools to find your target buyers and turn them into loyal customers.

What part of TikTok would you like more information about?