What is the Difference Between TikTok’s Yellow Shopping Cart and TikTok Shop
Jojo Lai 15 Apr 2024 11:05
Many users who are browsing TikTok or watching TikTok live streams may notice a yellow shopping cart icon at the bottom of the page. Clicking on it will display some product links, and you can directly jump to specified third-party shops or TikTok stores to sell products. This prompts some users to ask:
“What conditions are required to set up a yellow shopping cart? ”
“How can I enable the yellow shopping cart? ”
“Can I sell products through it? ”
In fact, this is the product sharing function in TikTok e-commerce, and the yellow shopping cart is the official shopping cart. Here's a detailed explanation of what conditions are required to enable the yellow shopping cart on TikTok.
TikTok's yellow shopping cart is a primitive business that has existed since TikTok went live. Currently, TikTok's yellow shopping cart is mainly divided into two types: one is the short video yellow shopping cart, and the other is the live yellow shopping cart. For the former, users can add the yellow shopping cart button to their video, and viewers can see the corresponding promotional products when they view the short video. For the latter, brands can put multiple product links in the yellow shopping cart in the lower left corner of the video during the live broadcast to introduce them to the audience.
TikTok Shop is more like an independent e-commerce store, allowing brands and merchants to showcase and sell their products on the TikTok platform. Sellers can apply to set up a store, list products, and complete the product information writing on the store.
Shop model:
Firstly, if you choose to run a small shop, you need to have appropriate sources of goods, or supply chain advantages. Small shops are generally self-operated or back-end. Self-operated shops generally have source advantages or are a brand, and can choose to do live broadcasts and short videos themselves. If you are doing back-end, you need good support from the supply chain, and it is best to have a local warehouse cooperation, because the explosive orders in Southeast Asia are the same as in China. You need to be able to deliver steadily and control the delivery time well. If you cannot deliver goods, your store ranking will be affected, leading to limited orders and loss of influence, and even closure of the store. Currently, prices in Southeast Asia are very low, even comparable to those of Pinduoduo in China. One reason for this is that the consumption level in Southeast Asia is relatively low, and essential products such as food, clothing, housing and transportation generally sell well. The rent of local warehouses there is also very low, so most supply chain businesses bring products to local warehouses. In addition, the prices on e-commerce platforms such as Shopee and Lazada are very low. Many products can be sold for 9.9 cents, and even cash on delivery (COD), making it impossible to compete without sufficient capital and supply chain strength.
Influencer:
The yellow bike model is more suitable for individuals or small teams to quickly understand the overall market and e-commerce model in Southeast Asia. This model enables you to earn commissions directly when the order is placed, without having to package and ship the goods yourself or worry about the back-end sources of goods and supply chains, including logistics, warehousing, and returns. This model has the lowest risk since you don't have to worry about whether the merchant will make a profit or not.
A. Open through the TikTok Shop
What are the features of TikTok Shop?
a. After opening a shop, you can easily cover the three major entrance points of the shopping cart feature (display window, homepage display, and live streaming entrance).
b. Product listing, decoration, and marketing settings are straightforward, suitable for beginners without e-commerce experience. You can focus on content marketing.
c. The shop includes an affiliate marketing entrance, where you can set commission methods for influencers to sell for you. You can also use targeted plans, open plans, and store plans to let TikTok influencers sell for you and receive commissions, solving the problem of shooting videos and live streaming.
d. You can track transaction amounts, order numbers, estimated commissions, and ROI, making it easy to manage the shop.
This method involves applying for a TikTok Shop and then binding your account in the background to enable the shopping cart feature. Currently, one shop can be linked to five accounts. The advantage is that you can open the shopping cart feature even with zero followers, without needing to be affiliated with a guild or organization. The disadvantage is that you can only link up to five accounts, including one official account and four channel accounts.
B. Account with over 1,000 followers can apply for Yellow Shopping Cart
After a Tiktok account reaches over 1,000 followers, we can directly apply for Yellow Shopping Cart in the background. The advantage is that the threshold is not high; as long as you have an account and have published some content to gain 1,000 followers, you can apply. For those who are not in a hurry and have someone to operate the account, this method can be considered.
The disadvantage is that it is troublesome to withdraw funds. Firstly, you need to prepare a local bank card; that is, you need the bank card information of a local person. If you are running a Malaysian account, you need a local Malaysian bank card to withdraw funds. If you don't have one, you need to find a local MCN agency to withdraw on your behalf. However, MCN generally charges a commission of around 30% to 50%, which means that if you withdraw 100 yuan, MCN will charge you 30 to 50 yuan. If you have multiple accounts or a large amount of money, it is recommended to open your own MCN agency to operate. In this way, you do not need to pay commissions. However, according to the official information, if your MCN does not have sufficient data support, it may face closure later.
Therefore, in the early stages, you can first find an affiliated MCN agency and then steadily open your own MCN agency later to be more secure.
C. Open account with an MCN agency
Find an MCN agency and provide your account UID and Handle to the MCN, and they can help you directly open the e-commerce live streaming permission with 0 followers.
TikTok, as a video-driven social media platform, allows you to showcase and promote products in your videos so you can generate more revenue from TikTok. Remember to find fitting products or services to promote and sell.
