Why TikTok Is a Game-Changer for Small Businesses
ERAA Consulting are your go to experts for TikTok Shop Bookkeeping and accounting. TikTok is no longer just for viral dances and memes. With over 1.5 million UK businesses using TikTok, the platform has proven to be a powerful sales channel. Short-form video content engages audiences in a unique way, helping businesses drive sales and brand awareness.
The Numbers Speak for Themselves
- Over 3 billion downloads worldwide
- More than 50 million daily active users
- 89 minutes of average daily watch time per user
- 35% of users have purchased a product after seeing it on TikTok
With these figures, it’s clear that TikTok offers huge potential for small businesses looking to expand their online presence.
TikTok Shop: What You Need to Know
TikTok Shop allows UK businesses to sell directly through the app, making it easier than ever to turn viewers into customers. Here’s what you get:
Shoppable Video Ads – Tag products directly in videos for seamless shopping.
Live Shopping Events – Showcase products and interact with buyers in real time.
In-App Shopfront – A customizable online storefront within TikTok.
No Upfront Costs – Only pay commission on sales (starting at 1.8% for 90 days, then 5%).
Massive Audience – Reach millions of potential buyers instantly.
TikTok Shop Bookkeeping and accounting will be sorted for you by ERAA Consulting Limited.
Success Stories: UK Small Businesses Thriving on TikTok
Let’s TikTok Shop Bookkeeping and accounting done for you.
Many small UK businesses have seen incredible growth thanks to TikTok:
Hair Syrup – A haircare brand that gained massive popularity on TikTok, leading to a £6.5 million revenue and retail deals with Boots.
Made by Mitchell – This cosmetics brand that became the first UK business to make $1 million in TikTok Shop sales in a single day.
Ethereal Jewellery – Small jewellery brand that saw impressive sales within just three days of launching on TikTok Shop.
These success stories prove that TikTok can be a game-changer for brands that understand their audience and leverage engaging content.
The Pros and Cons of Selling on TikTok: TikTok Shop Bookkeeping and accounting
✅ Advantages
High Engagement Rates That Drive Sales
First and foremost, TikTok dominates the social media landscape with its exceptional user engagement metrics. TikTok users consistently spend significantly more time actively consuming content. This creates unprecedented opportunities for brand visibility. This extended viewing time translates directly into increased sales potential for businesses leveraging the platform.
Superior Brand Recall in the Digital Space
TikTok’s unique content format delivers remarkable brand impact that surpasses all other social platforms. Research demonstrates that consumers are 40% more likely to remember brands they discover on TikTok compared to other social media channels. Consequently, this powerful combination of extended viewing time and enhanced brand memorability creates an unparalleled opportunity for businesses to make lasting impressions on their target audience.
Cost-Effective Marketing Strategy
Notably, TikTok’s unique algorithm democratizes content visibility, allowing organic posts to achieve viral status without substantial advertising investment. As a result, businesses can achieve remarkable reach and engagement through creative content alone, significantly reducing traditional marketing costs while maximizing ROI.
Streamlined UK Fulfillment Solutions
Furthermore, TikTok Shop has revolutionized eCommerce operations by introducing a comprehensive logistics solution specifically for UK sellers. This integrated fulfillment service seamlessly handles delivery management, enabling businesses to focus on growth while TikTok manages the complex logistics infrastructure.
Cross-Platform Content Optimization
Additionally, TikTok’s short-form video format offers exceptional versatility in content strategy. Smart businesses can efficiently maximize their content investment by repurposing TikTok videos across multiple platforms, including Instagram Reels and YouTube Shorts. This strategic approach triples content reach while maintaining a consistent brand message across all major social media channels.
❌ Disadvantages
Content creation is a must – Businesses need engaging video content to attract buyers.
Commission fees – TikTok takes a cut of each sale, starting at 1.8% for the first 90 days, then 5%.
Not for every brand – If your audience isn’t on TikTok, it may not be the best platform for you.
Getting Started TikTok Shop Bookkeeping and accounting
Setting up a TikTok Shop is simple:
- Visit TikTok Shop – Go to the TikTok Shop landing page and click “Open Store Now.”
- Register Your Business – Use your business email and provide legal details.
- Verify Your Identity – TikTok may request ID verification (passport, driving license, etc.).
- Start Listing Products – Add your products, set prices, and create engaging content to promote them.
Choosing the Right Products to Sell on TikTok
Not all products succeed on TikTok. To increase your chances:
- Research trending hashtags and popular product categories.
- Focus on items that appeal to Gen Z and Millennial shoppers.
- Partner with TikTok influencers to boost product visibility.
- User-generated content (e.g., customer video reviews in exchange for discounts).
Creating Engaging Content for TikTok
Successful TikTok content follows these golden rules:
- Hook viewers in the first 3 seconds – Grab attention fast.
- Use captions – Many users watch without sound.
- Leverage trends and hashtags – Stay relevant.
- Film in vertical format – TikTok favours vertical videos.
- Ask questions or encourage interaction – Boost engagement.
- Work with influencers – Authenticity sells.
Advertising on TikTok: Paid Promotion Options
If you want to amplify your reach, TikTok offers paid advertising options:
| Ad Type | Description |
|---|---|
| In-Feed Ads | Appear within users’ feeds, blending with organic content. |
| Brand Takeover | Displays full-screen ads when users open the app. Expensive but effective. |
| TopView Ads | Similar to Brand Takeover but transitions into In-Feed Ads. |
| Branded Hashtags | Encourages user-generated content with a paid brand hashtag. |
| Branded Effects | Custom filters or stickers for users to engage with. |
| Collection Ads | Showcases a product catalog within an interactive ad format. |
TikTok Compliance: TikTok Shop Bookkeeping and accounting What UK Sellers Need to Know
Before launching your TikTok Shop, ensure compliance with UK regulations:
- Restricted & Prohibited Items – Certain products are not allowed on TikTok Shop.
- Business Registration – Sole traders and limited companies must provide official business details to register.
- Consumer Rights & Refunds – UK businesses must follow Consumer Protection Regulations.
Is TikTok the Right Platform for Your Business? TikTok Shop Bookkeeping and accounting
Selling on TikTok requires dedication, creativity, and an understanding of your audience. If your target customers are young, engaged social media users, then TikTok is a great platform to explore. TikTok Shop Bookkeeping and accounting.
Want expert guidance? ERAA Consulting can help you stay tax-compliant and maximize profits across all online sales channels. Contact us today!
