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Fulfilled by TikTok: The Latest E-Commerce Activation

Published August 24, 2023
Published August 24, 2023
Bastian Riccardi via Unsplash

The battle to be the retailer/e-commerce destination beauty consumers choose to utilize will arguably never end. Amazon and Walmart, just to name a couple, are constantly trying to progress how they sell to consumers, aiming to be the most efficient, easy, and reliable service. Yuriy Boykiv, CEO, Front Row, highlighted to BeautyMatter that "Amazon currently plays a dominant role in e-commerce," yet at the same time, gave mention to an upcoming Fulfilled by TikTok service (FBT), which he feels "might become a potent rival to both Amazon and Walmart in the near future." Fast-forward a short space of time, and as promised, TikTok has announced Fulfilled by TikTok, an extension of TikTok Shop,  and it seems the program is set for high levels of success.

So far available only in the UK, FBT is a logistics program "that makes it easier than ever for merchants using TikTok Shop to sell on the platform." The initiative has been designed to help free merchants relieve themselves from time-consuming shipping and fulfillment tasks with fast and affordable service. FBT's process works by signed-up merchants handing over a volume of their stock, which is then stored at a warehouse. Once these items are in the warehouse, when an order is placed, workers pick, pack, and ship the product the same day. Currently, single-item pricing costs brands 30 pence per order and £1.19 for bundled items.

Several beauty brands have already adopted the service, including The Beauty Crop, a small independent business, which has seen search volumes increase by 30%, shipping times drop by 36%, and late dispatch rates drop by 45%.

The service works in favor of both large and small businesses, cutting down time spent on organizing orders and allowing them to focus on other aspects of business. "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," says TikTock Shop creator and merchant @Sumayah.

FBT comes at a time when TikTok Shop is seeing high levels of success. As of January 2023, consumer spending on TikTok had surpassed $2.5B globally, reaching 23.7 million shoppers in the US alone. TikTok's most prominent audience, Gen Z, now uses the app to source out new products and shop their favorites, with 69% of the generation turning to the app to learn more about beauty and 60% having purchased a beauty product on the app. As TikTok's audience continues to immerse themselves in beauty shopping on the app, TikTok Shop's market value is expected to reach $20 billion in gross merchandise value by the end of this year, quadrupling from its value a year prior. As TikTok Shop numbers continue to soar, many more merchants are expected to adopt FBT, which will only turn into an even larger usage should the program expand outside of the UK. TikTok's ability to build an e-commerce empire out of an entertainment app is not only commendable but also setting the scene for the future of beauty consumption.


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