TikTok Shop Launches e-Commerce Fulfilment Services in the UK to Challenge Amazon

TikTok is expanding its commerce-related services in the UK through its new shopping feature called ‘Fulfilled by TikTok’. It helps users manage the entire fulfilment process, from storing to shipping goods and ensures reliable delivery at competitive rates.

In the rapidly changing e-commerce landscape, TikTok Shop has made a bold move with the launch of ‘Fulfilled by TikTok’ for UK-based merchants.

In a statement, TikTok announced, “We are proud to announce the launch of ‘Fulfilled by TikTok’ (FBT), a new logistics program which makes it easier than ever for merchants using TikTok Shop in the UK to sell on the platform.”

The UK, along with other Asian markets, were among the first to receive TikTok Shop commerce features. FBT, like its Amazon equivalent, Fulfilled by Amazon or FBA, will provide UK merchants with picking, packing, and shipping services for TikTok products.

Elaborating on the launch, TikTok said, “FBT is a logistics offering available in the UK where TikTok Shop stores, picks, packs and then ships merchants’ products to the TikTok community. It is designed to help free merchants from time-consuming logistics via a simple, fast and affordable solution, so they can focus on important aspects of their business such as marketing, content and product development.”

How Can You Be Eligible For ‘Fulfilled by TikTok’?

Fulfilled by TikTok (FBT) stores, picks, packs, and ships your goods to TikTok Shop customers. But, merchants must match the following eligibility criteria. 

  • Geographic restrictions: Only merchants based in the UK and delivering within the UK can use FBT.
  • Package limitations: Packages must weigh less than 30 kg and have a volume of less than 31.5 cubic litres.
  • Fees: TikTok Shop charges fees for warehousing, shipping, and other added value services such as labelling, pre-packing, and inserting leaflets. You can find a full rate card and list of value added services in the TikTok Seller Center. On its website, TikTok Shop states, “Every new inbound shipment comes with 30 days of free storage. Plus, FBT is currently covering the cost of the first item pick fee.”

Key Features of ‘Fulfilled by TikTok’

  • Fast and efficient fulfilment: All orders placed before 7pm Monday to Saturday are fulfilled and shipped on the same day.
  • Next-day delivery: Customers can choose a premium next-day delivery service for an additional fee.
  • Improved customer satisfaction: Instant messaging and dedicated customer service employees help to resolve customer issues quickly and efficiently, leading to better customer feedback and ratings.
  • Reduced delivery times: The overall fulfilment and delivery process is streamlined and optimised, resulting in shorter delivery times for customers.

Step-by-Step procedure for TikTok Shop merchants to use FBT:

  1. Step 1: Sign up for FBT. Merchants can sign up for FBT through the TikTok Seller Center.
  1. Step 2: Select the products you want to store and ship through FBT. Merchants don’t have to store all of their products at the FBT warehouse, or use FBT for all of their products. They can select particular items which they would like to store and ship through FBT.
  1. Step 3: Send your products to the FBT warehouse. Once you have selected the products you want to store and ship through FBT, you will need to send them to the FBT warehouse. You can find the address of the FBT warehouse in the TikTok Seller Center.
  1. Step 4: Fulfil orders. Once your products are stored at the FBT warehouse, the warehouse will pick, pack, and label the merchandise before it is shipped. All you need to do is manage your orders and provide customer support.

TikTok’s Challenge To Amazon

TikTok’s entrance into fulfilment comes as Amazon reportedly made an unexpected tweak to the costs it charges non-FBA sellers. Third-party sellers who ship their own products rather than using Amazon’s fulfilment services but still wish to be included in Prime through the Seller Fulfilled Prime (SFP) program will pay a 2% tax on each product sold beginning October 1, 2023. Participating sellers have always paid a referral fee of 8% to 15% on each sale, but the additional 2% per-item fee is new to the program.

While TikTok’s fulfilment services are still in their early stages, the firm is aggressively increasing the global reach of its Shop features. TikTok Shop started in North America in late 2022, and if FBT follows a similar path, logistical services may follow soon.

TikTok has also partnered with live-selling solution CommentSold to offer a new live-selling integration with TikTok Shop in the United States. CommentSold merchants may now hold live shopping events on TikTok using the CommentSold platform. TikTok’s roots in video content have long positioned the network as an ideal platform for livestream commerce.

“We’re absolutely delighted to partner with TikTok and bring a brand-new channel to our community of Live sellers, retailers and brands,” said Gautam Goswami, CEO of CommentSold in a statement. “This is already helping our customers acquire new shoppers, increase engagement and customer loyalty, and drive repeat purchases and revenue growth. TikTok is a key player in the U.S. live-selling landscape, and we look forward to partnering with them as adoption grows.”

Hear What FBT Users Have To Say

Many FBT users have shared their experience and here’s what they report about the fantastic results they’ve achieved.

Ning Cheah, Founder of Skincare and MakeUp brand The Beauty Crop said, “As a small independent company, it’s always great to find ways to help make things more efficient. Since using FBT, we’ve seen volumes increase by 30%, shipping lead times drop by 36% and late dispatch rates drop by over 45%. It's made a huge difference.”

Sach, Managing Director of personal care brand Nature Spell said, “Partnering with FBT has been a monumental shift for us. Before FBT, we were drowning in order volumes and couldn't focus on what we do best: manufacturing.”

TikTok Shop UK Creator and Merchant Sumayah said: “FBT has been a game changer for us, streamlining processes and improving our business. It significantly reduces lead time, enabling lightning fast order processing and delivery. It boosts order volume and attracts more customers with its robust features and user-friendly interface. Other merchants can benefit greatly from this program.”

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