The benefits of TikTok for business, including its vast reach, engaging content format, and robust algorithm, are widely recognized. Mitchell Halliday, CEO of the British beauty brand Made By Mitchell, knows precisely how to utilize the app to benefit his business goals. Last month, the content creator became the UK's first beauty brand to hit £1M ($774.4K) sales in one day on TikTok Shop. This success came off the back of a 12-hour livestream, which saw one product sell every second. To help new merchants take a similar path and strive towards the goal of hitting £1M on the platform, TikTok for Business has introduced the £1Million Club.

The £1Million Club will feature a series of special incentives and support at no extra cost to those who choose to register. The initiative provides five core benefits to new merchants, including 90 days of 0% commission-free sales, fulfillment through Fulfilled by TikTok, and free storage. TikTok will also provide dedicated promotional support for merchants, ensuring that brands and products receive the highest exposure and attention possible.

The "£1Million Club" policy includes the following aspects:

• Up to 90 days 0% Commission-Free Sales: All new sellers on board will be eligible to claim the offer within 14 days of onboarding until September 30, 2024. 
• Free Fulfillment By TikTok Shop: TikTok Shop will provide free storage and free fulfillment to help merchants optimize inventory management and logistics distribution, reduce logistics costs, and improve distribution efficiency. 
• Seller Experience and Support: TikTok Shop will support sellers through onboarding and product listing processes to ensure a fast and smooth process to start selling on the platform, along with a complete after-sales service system.
• Seller Training: New sellers will be invited to attend merchant training via TikTok Shop's Seller Academy to access the latest market trends, operational skills, and successful cases to help merchants improve their operational capabilities.
• Marketing: TikTok Shop will work with top new merchants to plan and execute marketing activities, using the platform's insights to accurately reach target consumer groups.

"We are committed to helping both big brands and small businesses supercharge sales outside of traditional channels. Through launching our new '£1Million Club' plan, we hope this package of e-commerce solutions and resource support will help UK businesses to grow rapidly by putting their products in front of new audiences," says Jan Wilk, Head of Operations, TikTok Shop UK.

The £1Million Club is sure to amplify the business appeal of several brands, but particularly SMEs, benefitting not only each individual brand participating but the wider economy too. According to Capterra, 71% of small businesses plan to increase their TikTok marketing spend this year after seeing the positive impact the app has had on their brand. This figure has risen by 52% from 2023, as 96% of SMEs state that TikTok is the social platform where they receive the most engagement. A recent report from Oxford Economics, The TikTok Effect, revealed that €4.8 billion ($5.1 billion) was contributed to the GDP of Germany, France, Italy, Netherlands, and Belgium in 2023 by activities of SMEs on the platform.

TikTok's support for small businesses not only empowers these enterprises to reach broader audiences and drive sales, but it also benefits the platform itself. By fostering a thriving ecosystem of diverse, creative businesses, TikTok enhances user engagement and attracts a wider range of content creators. This, in turn, boosts the app's appeal, increases user activity, and solidifies TikTok's position as a dynamic marketplace, continuing to push respected e-commerce retailers such as Amazon to amplify their offerings, keeping the competition fresh and exciting.