in my seven years of e-commerce I have never seen a gold rush like right now with Tik Tock shop and in this video I'm going to explain exactly what you need to do to start on Tik Tok shop how to start selling what the logistics look like and break it down for you step by step and just to place a little weight on how seriously I'm taking Tik Tok shop I've done about 20 to $25 million in sales throughout my e-commerce career I think I'll do that much in the next 18 months primarily through Tik
Tok shop I'm launching multiple brands I've got $3.5 Million worth of inventory for one product sitting in a warehouse in Florida that we're moving just through Tik Tok shop like we're taking it very seriously so I have a lot of stuff I want to walk you through here there's a lot of misconceptions going on and I've been deep in the trenches here with Tik Tok shop so in terms of actually opening your shop there are still things and people that are confused around this okay so misconceptions first of all when you are opening your Tik
Tok shop you are going to want to use personal information you can use an LLC now what a lot lot of people don't understand is the LLC is still backed by personal information so if I submit my Ein my articles of organization and the tax dos Associated it still asks for a personal verification that verification needs to be a managing member or or sole owner of that LLC so somebody on it and that means it's going to ask for your name your personal address and the last four of your Social that is what the personal
verification looks like now the personal is the best for your first one like if you want highest approval odds if if you want to get started and be approved in the next day or two um you're going to want to go for the personal information route don't apply under an LLC if you want to make a second or third or eighth in my situation or whatever Tik Tok shop you're going to want to use llc's just note those llc's are getting disabled I have like a 90% disable rate so as soon as I open it
shut down and you have to go through that appeal process you're able to get it back I will show you exactly what that appeal looks like and what to say to them in a second uh just know a couple quick things you need to be based in the US so that person personal information has to be us-based so you have to be in the US or someone you're working with does to some degree however you want to set that up and you can only have one shop per LLC so yes I have many many shops
I have three right now that are sitting waiting two more that we're launching this week with inventory that just landed in the US all of those are different out se's now thankfully I've had like nine or 10 for quite a while mostly just for Real Estate holding so I can use those they've just been sitting ready to go but we'll be opening more just for Tik Tok shop so this is a what you need to do if you get uh disapproved for a second or for a third Tik Tok shop send this in I crafted
this uh very carefully with someone inside of Tik Tok and it's so far for me had a 100% uh like reenable rate for second and third shops that get shut down under llc's hey guys the reason I'm opening the second Tik Tok shop is for a different product I selling for a different e-commerce brand it can't be on the same shop I provided accurate information please let me know if there's anything else you need to verify this that's it I'm not going on a story about this or the the inventory or what's where no they
don't care about that you're going to want to use there's a couple key key words inside here brand is another one okay it can't be on the same shop I had one rep say oh we'll just add your product onto the same shop you already have and then saying I provided accurate information basically just reaying that I've already given you everything you've asked for like we've verified everything what else could you possibly need and that is what I'm saying I'm not shying away from anything if there's anything you need let me know like at this
point you've got my passport you've got my ID you've got tax documents Social Security you've got everything right right now one quick thing I will say I haven't needed it for some products but for your approval odds if you have a Shopify store or any other store where you sell this product that can help your approve a lot I've never needed it but if you want if let's say you're having an issue or you're going to go open a second shop if you plan on opening a Shopify store maybe do that first even if you're
not selling make the store live and then you could submit that as kind of proof with it it wouldn't hurt okay now once you have opened your shop here which again you can just go to Tik Tok shop and go hit get started that's really it go through the process with your personal info you're going to want to complete the tax info it's going to have you then set up the shipping then your product listing and link your Tik Tok page now there's been some confusion on a few of these things first of all the
product listing lot of information on there as you go through there be as detailed as possible if you want me to make a video like setting one up live setting up a product let me know in the comments down below I'd be happy to do that um there's just a lot of things in this video I'm trying to hit on like high level uh and then linking your Tik Tok page now starting on January 18th I want to say January 18th is when this issue first popped up is give or take when people started having
this problem where when they would go I'll I'll upload a screenshot I kept having this this error it would say your page is not verified your page so you can't link the Tik Tok page for the shop onto the seller account shop and I'm like what are you talking about verified like the info is on there and it's because they added this thing where you used to not have to do this where you actually need to go through and submit some information that you already have on the shop but on the uh store side of
things or excuse me on the page side of things so verifying the Tik Tok page is not and this confuses me for like 4 days I was really pissed off figuring this out is not through the verification in your settings no support person was able to help actually shout out to one guy who's been helping us out who uh old friend kazra who is is helping us out with some support ticket issues um this is like really his domain but I could not for the life of me figure out what they meant support was leading
me in the wrong direction on live chat it was I was spending three hours of time at on Live support like it was so annoying so it's not through the verification in your settings it's actually you need to find where it says Tik Tok shop in the settings uh not clicking through into account settings and verification um I can if anybody needs help with that I can like I'll submit like a little video layover right now of what you need to see so uh just look at this screen recording now a bank account is not
needed to start selling again you don't need an LLC you don't even need to link a bank to start producing sales so you can add that later now that's the setup info moving on from that leave a like And subscribe come on now all right uh rules and regulations this is the big stuff I wish that e-commerce was like this I would have had to change my entire business model years ago but I wish this level of scrutiny uh scru scrutiny what the hell is that word uh however it said just being under a microscope
was is so good this like I love it's just a breath of fresh air how they're structuring this platform this is my partner yo what's good B being fuing ran right now let me turn this around say hi what up I'll I'll call you in a sec give me 10 we're running a couple stores together using which you'll see in a second an automation type bot to help really scale this stuff so we are building a couple of big Brands we've been working on for way too long so rules and regulations number one I'm going
to give you three three-day scan in through USPS people are mistaking this K the ldr which is basically a dispatch rate that you get to see through Tik Tok shop you get rated on this on how quickly you get your product out the door it doesn't matter if it's a weekend a holiday not your birthday they don't care okay and that's what's crazy crazy because this people are mistaking this oh I'm going to drop it off on USPS on day three good luck I I I hope we compete together because this is what people don't
understand USPS does not always scan in their products on the same day sometimes they'll sit do you know how much that's going to screw you if that happens so here's what we do we fulfill most of our stuff out of my friend Ariel's Warehouse that he has very large Warehouse in Florida and they basically print out it's like a a master label if you will of all the lab of the products they don't have to obviously scan each one in this is what larger shipping carriers do it's Boop one scan as they pick up all
the products and that counts is them being scanned in that triggers that into Tik Tok shop very helpful uh but basically just so you know this kind of requires you to have same day or next day shipping at the latest so send your products out on day one or day two not day three uh number two is the feedback score uh this is just like a amplification of what Facebook did years ago uh where your customers can leave feedback and it will drastically affect the health of your shop to look at some stuff go into
Tik Tock shop and then go under account Health on the bottom left there you can see all the metrics that you must hit they're going to give you a lot all the data you have to follow and I want to point one of those out in particular number three a 24-hour response rate if you've ever drop shipped anything in your life forget everything you know reread rule number three hello my friend you need to have a 24-hour response rate I know that's new okay but you're going to need to do that I know drop shippers
get a little little iffy I feel you so customer service everything needs to be answered within 24 hours any message and this has been a big deal okay because people who don't do this get screwed I haven't seen a lot of people screw this up it's really not that hard this is basic standards but now that people are being held to the standard you have to do it no options it's easily being met so those are three big boys there's plenty of other rules and little things now let's talk about starting to sell I do
want to say one thing real quick there's a questionnaire somewhere down below if you want to work with me and my team at all we're helping people scale and start Brands through Tik Tok shop even in some cases providing funding for inventory and stuff when people start to scale and can't afford that because we'll talk about the cash flow issues in a second um but if you want to work with us in any capacity answer a couple questions down below or working with a few people Tik Tok Shop's been nuts so let's talk about starting
to sell these products as you get things set up your accounts set up your products linked you've sorted out your inventory which we'll talk about don't send samples to everyone okay this was something I did on the first shop and uh I don't know it just gets expensive really quickly I'm all for sending samples I'm I'm really big on that because it just creates that backflow of orders a week to two weeks later but here's what you should do at least in the beginning be a little bit more stingy looking into the stats of each
Creator you don't want anyone brand new who hasn't made any money on Tik Tok shop unless they're really big or with no audience okay so don't kind of like they need one or the other even if they're small but they've made 177,000 in gross revenue like that's something right go look at their page do some research we now have a bot we're using that automates this that's something some of our clients are using as well so again we help a lot of people um like just like 30X literally 50x the sales it's ridiculous I mean
we reach out to 4,000 influencers a day with what Corey and my partner there uh just called me about like a message for a new brand what do we want to say to creators on like cold Outreach and we swap through these see what gets the best conversion rate and we're bringing them in the door so we're doing cold Outreach as well uh but you should know the creator has an obligation to post within a certain time frame just like you as a seller have obligations so if the Creator gets a sample and they don't
post it within that certain timeline they can get kicked off Tik Tok shop I think they do it twice I don't know the exact rule but like I I don't think we've had very many people not post so I just like that all the standards I mean just got elevated not unnotched like through the roof I mean like without swearing I'll bleep this out geted like everybody else like I like this like for the first time in my life if anybody here is watching knows me at all like I haven't touched anything ever in my
life I mean I have friends who rip out all to stay focused all day who drink coffee I've never even touched coffee but for the first time in my life I'm considering very straight sources of nicotine just to help like really lock in and focus on this and I like the challenge of meeting certain standards because I'm telling you everybody who's doing this is going to blow up their sales and get absolutely smacked down it's going to happen over and over again and guess what happens it's just like Facebook ads we've seen it happen with
Tik Tok ads when that happens you are done your name is blacklisted basically your Social Security is attached to everything on here you're screwed you're done don't mess that up okay that's why I'm trying to make this video like at best this YouTube video makes me like $800 in ad Revenue I don't care okay I donate more than that every month this is like just critical for people who are trying to sell it's like please like appreciate that and and try to like take it to heart a little bit so now let me get back
to like the how to sell some more stuff that's just strategy here how many samples should you send out okay this is based on your inventory and how quickly you want to scale let me say that again how many samples do you send to creators I right now exactly below me I'm upstairs in my house in the room below me that is has always been empty for years now has 150 units of a product it's like seven big boxes I'll post a picture of it I'll walk downstairs after this inside of there's only 150 units
that's nothing cost me $2,200 2250 plus Customs tax that's like the smallest order that is the smallest order I've ever done for inventory ever I'm going to send out 30 samples okay and I say that to give you a range try try understanding this range here now I have 78,000 units of a product in Florida so far we've sent out 3 to 350 we're we I gave the the guys the green light on our team to send a th000 percentage wise very different right 30 It's A Small Piece because I just want to start getting
1015 sales a day and I'll immediately order 3,000 or so units okay right now we're battling Chinese New Year so we got to wait for that but 3,000 right so it's just I'm kind of jumping I want to see some life on the products now normally I'm going to order about 500 units it's kind of a good starting size for inventory but here this is really based on your inventory and how quickly you want to scale on the very aggressive side I'll send two to 300 per day do you realize let's do some very quick
math ladies and Gentlemen let's say I have a $15 cost okay $15 per sample times 300 samples a day that's 4500 $1 120 something, a month in samples now I'm not going to send that out for the full month right I'm not keeping up that pace I'm going to be a higher cost product that we sell for 15 most of our stuff costs a little less but we use automation systems to help scale that so what I'll do is I'll kind of hit it hard off the bat right get some traction there and pull it
back uh so on the low end you know right now like I mentioned 150 units I'll send 30 to start a good place is send 20 to 30 samples a day for a while um usually I start at 50 I got like to get up to 2 to 300 and be prepared to send 200 to 500 samples that's just a reasonable range do your thing test it out you got to figure it out for yourself Tik Tok shop but those are a couple things you should know okay continuing on unexpected issues expect this that's all
I could say fulfillment uh when the SC scales it scales this is not uh Facebook ads let me lower my budget cuz we're battling inventory like again this goes back to my sentence I will bleep this out out of respect get like you will be done so this can be very difficult to keep up with so please be on top of fulfillment there's a couple ways you can do this with Drop Shipping on Tik Tok shop rough rough I'll post a photo right now Joel good guy inside of our coaching group he was running a
couple drop shipping stores Tik Tok ads some stuff pop in you know kind of slow down like make a ton of money just kind of like up and down on the profit up a little bit in the day lose a little bit money the next day struggling gets on Tik Tok shop I think his first product on there cracks 26,000 in a month okay new issue he was Drop Shipping using us inventory from CJ Drop Shipping and now they don't have anymore his was size variant like large extra large you know and all the popular
ones got sold out so what is he to do okay he's now faced with two issues fulfillment issue not only like okay he has to pause the store he wasn't having like fulfillment fulfillment issues yet so he couldn't Contin continue selling but then to continue selling he now had issue number two which guess what was Cash Flow cuz CJ wasn't going to help he has to pay for inventory okay so if you get penalized on your store at all just one thing I want to point out with your cash flow your payouts can move out
further so you get your money two weeks after your customer gets the product that you shipped them I'm going to say that again two weeks after the delivery arrives that's a long time to put out some money okay I have provided cash to student and I'm in talk to I think two others right now who just need help and like if it makes sense we strike a deal I take a piece of the company I'm happy to provide like transactional funding for that again if it makes sense so that's something like just people are having
a problem I'm trying my best to assist but that's really the big issue okay you can do lines of credit do whatever you want if you if you know you can get creative plain and simple some people didn't have access to that like I mean when I was 17 starting e-commerce I had like 5,500 bucks like there was no me applying for a line of credit you know uh but the good news is with the cash flow issues that's only a problem with Tik Tok shop when it's working so good problem if I walk up
to I don't know I mean if I went to my parents when I was 17 who were like doing okay I'm like they weren't rolling in money I said look you know I got all these orders coming in like this is the pace we're on I need to order inventory to keep up with it supplier says we can do 50% down on it so you know hedge in the risk and pay the rest 30 days after delivery which is a very real thing um okay it might be like a reasonable way to talk because there's
traction it's not hey I need 50 Grand to start something it's you I need to front 20 for 50 Grand of inventory and we've already been making $1,000 a day it's look like you struck a gold mine like there's plenty of people who would put up money for that um so just keep up with that and so to to hit back on the Fulfillment uh the only way I've ever seen people ever do uh well with uh Drop Shipping on Tik Tok shop is through CJ the problem with CJ is that if you go up
here to the warehouse to us warehouses let me see if this uh warning is on the front page um I've actually seen a couple of Tik Tok shops get immediately disabled as soon as you link CJ I think they're kind of getting flagged a little bit but uh if we go here I don't even know how to see this let's click on these they'll give you a warning that if anything shipped from the US it's not a guaranteed 3 days and this is the problem okay right here estimated processing time 1 to three days for
80% of the orders they obviously don't want to hold themselves to a liability issue so some people are having a little bit of an issue um just when it comes to uh their ldr like that dispatch stuff so just something to keep in mind um but other than that with fulfillment ordering inventory tough to do if you don't have a relationship with a supplier uh in terms of cash flow because you're paying for the full inventory up front and gets really expensive like I did for the 150 units down there um but like my supplier
that I work with for most of my stuff as horing agent they'll front me money and basically what I do I have to put 30% down so if I order 100 Grand worth of stuff I'm going to wire them 30 they're going to send it to anywhere I want my house who knows the president's house the White House whatever uh to you know a 3pl where the warehouse is and that's it like I'm going to pay the other 70% 30 days after this is so big after the order gets delivered that really helps out my
cash position so yeah it's just it's it's much appreciated so that's really helped for me um I haven't had any issues with that so that is uh really what I got for you here and the appeal as well so I really hope you enjoyed this video just walking through everything if you have any questions at all please don't hesitate to leave them in the comments Below in fact I hope you stack them make multiple comments not only does that help my engagement that is going to be the exact questions I will screenshot and answer in
my next video so anything you want to know at all specifics live product examples whatever let me know
