How to Choose the Operating Mode for TikTok Shop

How to Choose the TikTokShop Operating Model

With its rapid development worldwide, TikTok's e-commerce function, TikTokShop, has gradually become a focal point for merchants and creators. As a social platform integrating short videos and live-streaming sales, TikTokShop offers users diverse operating model options. However, given different market environments and personal resource conditions, choosing an appropriate operating model becomes a critical issue.

Firstly, understanding the basic operating models of TikTokShop is the prerequisite for making decisions. Currently, TikTokShop primarily provides two operating models self-operated mode and third-party cooperation mode. In the self-operated mode, merchants need to handle procurement, inventory management, and logistics delivery independently, while in the third-party cooperation mode, merchants can complete these processes through collaboration with third-party service providers on the platform. Both modes have their advantages and disadvantages; the self-operated mode allows better control over product quality and service experience but demands higher capital flow and technical support. In contrast, the third-party cooperation mode lowers the entry threshold but may face certain restrictions in profit distribution.

From news reports, many early adopters of TikTokShop chose the third-party cooperation mode and achieved good results. For example, a well-known domestic clothing brand achieved sales exceeding one million within just a few months by collaborating with a professional supply chain management company. This case indicates that, for newcomers lacking relevant experience or resources, leveraging external forces is a wise choice. Third-party service providers often offer additional services such as data analysis and advertising placement, helping merchants more efficiently reach target customer groups.

On the other hand, as TikTokShop expands its business, more medium and large enterprises are beginning to try the self-operated mode. According to the latest statistics, companies using the self-operated mode have an average order conversion rate about 20% higher than those using third-party services, which is undoubtedly encouraging news. However, to successfully implement the self-operated mode, enterprises must have a robust supply chain system and efficient warehousing logistics network. For instance, an electronics manufacturer not only established a nationwide distribution system but also introduced advanced automation equipment to enhance shipping efficiency, ensuring products could be delivered to consumers in the shortest time possible. Such efforts not only improved user experience but also earned the company more loyal customers in a fiercely competitive market.

Apart from the two mainstream models mentioned above, TikTokShop also encourages innovative hybrid operating methods. A hybrid operating method refers to maintaining core business autonomy while flexibly utilizing third-party resources to make up for shortcomings. For example, some small and medium-sized enterprises choose to outsource non-core businesses, such as customer service consultation and return processing, to third-party institutions, thus focusing their energy on product development and market promotion. This approach avoids excessive reliance on external forces while balancing cost control needs.

It is worth noting that when selecting a specific operating model, it is essential to fully consider local laws, regulations, and cultural customs. Different countries and regions may have varying regulations regarding e-commerce, so merchants must conduct thorough research before formulating strategies. Additionally, considering TikTok’s diverse user base, adjusting marketing plans based on regional differences is crucial. For instance, in the Southeast Asian market, where young people make up a larger proportion, entertainment and interactive content tend to resonate more easily; whereas in Europe, there is greater emphasis on brand value and social responsibility.

In conclusion, TikTokShop offers merchants a wide range of operating model options, each with unique applicable scenarios and development potential. Whether it is a startup team pursuing quick results or a mature enterprise aiming for long-term market presence, everyone can find their own path. Of course, regardless of the chosen model, continuously optimizing user experience remains the key to winning market competition. As a senior e-commerce expert once said successful e-commerce operations cannot do without attention to detail and keen insight into trends. In the future, TikTokShop will continue to serve as a bridge connecting global consumers, and every participant should seize opportunities to jointly promote the prosperity of this emerging field.