So, I just got off a call with a $100 million fashion performance brand, huge player in their space. They were looking to figure out if TikTok Shop is worth diving into as a sales channel.
Spoiler: it’s not a simple “yes or no” situation. Like, sure, TikTok Shop has been making waves (helping brands like Hey Dude become the fastest shop to hit $1M GMV/month in U.S. history), but big numbers don’t always mean big wins for your business.
This conversation hit some seriously important points about evaluating platforms like TikTok Shop, and honestly, every brand out there should take notes.
Here’s what came out of it:
TikTok Shop Isn’t a Magic Money Printer
The hype is real — TikTok Shop is blowing up. But that growth comes at a cost. TikTok takes an 8% fee off the top, plus you’ve got to pay creators their cut. That’s before you even look at your ad spend or fulfillment costs. If you’re not locked in on your unit economics, you could be burning through cash to chase those viral sales.
The question isn’t “Can TikTok Shop sell my products?” It’s “Can I make money selling on TikTok Shop?”
Are You Really Getting New Customers?
TikTok Shop is great for exposure, but the tracking side? Kind of murky. How many of those sales are actually new customers versus your existing audience buying on a new channel?
Without clear data, you’re flying blind. You could end up throwing money at “growth” that’s really just shuffling sales from one pocket to another.
It’s not enough to get sales , you need to understand who is buying and what that means for your long-term strategy.
The Data Black Hole
And then there’s the data. This brand? They’re big on analytics. They want to know what works, what doesn’t, and how they can scale.
But here’s the thing: TikTok owns the customer data on their platform, not you. That makes it harder to build out email campaigns, retargeting efforts, or even just understand the lifetime value of these customers.
If you’re investing in a channel, you need to think beyond today’s sales and ask: “What’s the long game?”
So, What’s the Move?
For this brand, the next steps are clear: test strategically. They’ve got a private label product that’s high-margin and perfect for TikTok’s audience, leaning into that makes sense. But they’re not jumping in blind.
We’re talking small tests, measuring impact (including that halo effect where TikTok drives sales on other channels), and making data-driven decisions every step of the way.
For anyone else thinking about TikTok Shop, or any shiny new platform.
Here’s my advice: Slow down. Evaluate. Plan. Don’t just chase the buzz because everyone else is doing it. Ask yourself:
- Can I make this channel profitable?
- How will I measure success?
- What am I giving up (like data control) to play here?
Because the brands that win aren’t the ones who chase trends — they’re the ones who execute smart, calculated moves. TikTok Shop might be a goldmine, but only if you dig in the right spot.
