Introduction

TikTok Shop is an e-commerce feature that allows you to sell and purchase products on the vertical short-form video SNS "TikTok."

Delivery of "TikTok Shop" finally started in Japan on June 30, 2025.

TikTok is a short-form video platform that boasts explosive popularity worldwide, particularly among Generation Z, and its influence already extends beyond the framework of a mere SNS. Unique and highly entertaining video content posted daily skillfully captures user interest and has become an entity that influences lifestyle itself.

What TikTok is newly launching is "TikTok Shop," which allows you to complete everything from video viewing to purchase in a one-stop manner. Previously, transitions from SNS to e-commerce sites were factors for user dropout, but with TikTok Shop, product links are embedded in videos or live broadcasts being viewed, and a mechanism is in place for users to purchase and pay for products directly within the app.

This mechanism has already been deployed in the US, the UK, Southeast Asia, and elsewhere, and many creators and brands are utilizing it as a new sales channel and achieving great results. In Japan as well, needs for "live commerce" and "short-form video x purchasing experience" starting with influencers are rapidly increasing, and TikTok Shop has the potential to become a central figure in that.

In this article, starting with the basics of "What is TikTok Shop?", we will comprehensively explain functions, how to start, costs, tips for success, overseas cases, and potential in the Japanese market. We will deliver practical hint-like information for companies and individual creators who want to utilize TikTok as a sales channel.

Reference: https://ads.tiktok.com/business/ja/products/ecommerce

How TikTok Shop Works

TikTok Shop is an "integrated e-commerce function" where everything from product introduction and purchase to payment and shipping management is completed within the TikTok app. It provides an unprecedented "seamless purchasing experience" where users encounter products in a natural flow while enjoying content and can purchase them on the spot the moment their emotions are stirred.

Integration of Video and E-commerce

Previously in e-commerce, it was common for people to learn about a product on SNS and then go to the trouble of transitioning to another site (Amazon, Rakuten, brand official site, etc.) to make a purchase. However, with TikTok Shop, "product links" and "purchase buttons" can be directly embedded in short-form videos or live broadcasts, and users can purchase products directly within TikTok without interrupting the flow of viewing.

For example, the following purchasing experience is possible:

  1. A user encounters a product introduction video in the TikTok recommended feed
  2. Tap the product tag displayed within the video
  3. Move to the "product detail page" within TikTok and select size, color, etc.
  4. Complete payment and ordering directly within TikTok
  5. Even shipping is handled automatically using TikTok Shop's logistics partners

Since this flow is entirely completed within the TikTok app, the risk of user dropout can be minimized.

The Power of Recommend AI

Another strength of TikTok Shop is high-precision product suggestions by "Recommend AI." TikTok's algorithm analyzes all interaction data such as a user's viewing history, likes, comments, saves, and shares, and naturally displays videos containing products of high interest in the recommended feed.

Therefore, opportunities for impulse buys where users "happen to see a video and are attracted to purchase it" increase, and high-conversion purchasing behaviors tend to occur, particularly among Generation Z.

Synergy with Live Streaming

Also, in TikTok Shop, the "Live Shopping" function, which allows selling while introducing products in real-time through live broadcasts, can be used. By conveying the appeal of products while responding immediately to viewers' questions or presenting time-limited sales and benefits, a powerful interactive sales channel is realized.

Many cases have been reported where being able to purchase products as they are during a live show demonstrates higher sales effects than conventional live broadcasts.

As described, TikTok Shop is a form of e-commerce for a new era that completes "knowing," "wanting," and "buying" on the spot.

Functions and Features

The appeal of TikTok Shop is not limited only to "being able to buy in a video." Various functions that improve the quality of user experience and make it easier for sellers to expand their sales channels are provided. Here, we explain their features and utilization methods, focusing on the four main functions.

1. In-Feed Shopping (Product Links in Video Posts)

A function that allows embedding product links in regular TikTok short-form videos (15-60 seconds). A user watching a video that comes up in the recommended feed (For You) can transition to the product page with a single tap at the timing they become interested in a product within the video.

The strength of this function is "being able to introduce products naturally without making them feel like advertisements." For example, the moment one thinks "Where is this shirt from?" in a fashion coordination video, they can access product information within the same screen and proceed to the purchase as is, so the user's interest is not lost.

2. Live Shopping (Selling during Live Streams)

A function where viewers can purchase products on the spot while introducing them in real-time using TikTok Live. "Product link buttons" and "price information" are displayed in real-time on the screen, and viewers can proceed to immediate purchase while watching the live show.

Live Shopping has the following three features:

  • Interactivity: Can respond to viewers' questions and comments in real-time
  • Sense of limitation: Can stimulate purchase motivation with time/quantity-limited sales
  • Sense of reliability: Distributor's facial expression, voice, and movement lead to a sense of security about products

Live shows in demonstration format are particularly compatible with genres that stimulate the five senses such as beauty, apparel, and food, and also tend to have a high conversion rate.

3. Shop Tab

Accounts opening a store in TikTok Shop can display a "Shop Tab" on their profile page. Registered products and their detailed information are displayed together in this tab, allowing users to check in a list products they became interested in after watching a video.

This is, so to speak, a "shop's show window" and plays a role in strongly connecting the sequence of videos and products.

4. Showcase Feature

A shop button can be added on the profile, making it possible to display a product showcase. It is a function that also allows narrowing down by category, popular products, price, and so on.

Users can browse product details from the list, and can put them in the cart or make a purchase.

Reference: https://www.tiktok.com/@rohtotiktok


Improving quality to "want to see and want to share" as content, not just posting videos, directly leads to increased sales in TikTok Shop.

By combining these functions, TikTok Shop creates a new "entertainment x commerce" purchasing experience that differs from conventional e-commerce. The greatest appeal is the compatibility of "a fun shopping experience" for users and "a design that sells" for sellers.

How to Start: Steps to Setting Up Your Shop

Store opening is possible with relatively simple procedures for both individuals and corporations on TikTok Shop.

A great appeal is that you can start even without knowledge of e-commerce site construction or special skills. Here, we explain the procedures for starting TikTok Shop and necessary preparation items.

Step 1: Register on TikTok Seller Center

First, access the TikTok Shop seller management screen "TikTok Seller Center (https://seller-jp.tiktok.com/account/register/)" and open an account.

Either of the following sets of information is necessary for registration:

  • Identity verification documents (driver's license, passport, etc.) as an individual business owner
  • Company register, corporate number, etc. in the case of a corporation

Also, registration of a contact email address and phone number is performed. After completion of registration, product listing management, order processing, and so on become possible from the Seller Center.

Step 2: Register Bank Account and Return Address

Register bank account information as the transfer destination for sales proceeds. Major banks in Japan are basically compatible. Also, registration of a return destination address is mandatory for handling returns and defective products.

Since the information entered here can also be edited later, it is problematic to register with simple information for now and improve it properly later.

Step 3: Product Listing and Selection

After logging in to the Seller Center, input information for products you want to sell from the "Product Registration" menu. Essential items are as follows:

  • Product name (within 40 characters)
  • Product image (high-quality one is desirable)
  • Product description (material, application, usage method, etc.)
  • Category, price, inventory quantity
  • Origin region, shipping method, shipping fee

Additional examination documents are necessary for some product categories (e.g., cosmetics, quasi-drugs, food, etc.). Once all information is input and examination is complete, products will be published within TikTok and sales become possible.

Step 4: Sales, Shipping, and Customer Support

When a product is sold, a notification will arrive at the Seller Center. You can choose to handle shipping at your company or utilize "Fulfilled by TikTok (FBT)," a logistics service provided by TikTok (*scheduled for sequential support in Japan).

Also, customer support is important. Quick response is required for inquiries from purchasers, and it also affects the evaluation system. To gain trust, prevention of shipping delays and polite message response are important.

Fees and Commissions

TikTok Shop adopts a "performance-based" pricing system, and a major feature is that initial costs and monthly usage fees are not involved at all. Particularly for small and medium-sized enterprises and individual creators entering e-commerce sales from now on, an attractive environment where they can challenge with low costs is ready.

Initial and Monthly Fees: Free

The following costs do not occur for opening a store in TikTok Shop:

  • Initial introduction fee: 0 yen
  • System usage fee: 0 yen
  • Monthly subscription: 0 yen

Since it is a mechanism where costs do not occur at all unless products sell in this way, it can also respond to needs such as "want to try it out first" and "want to do test marketing."

Sales Commission Charged Only Upon Sale

Costs occur only when products actually sell. On TikTok Shop, when one product is purchased, **7% of sales per order** is charged as a commission.

Other Possible Costs

Depending on the case, optional costs like the following may also occur:

  • Ad expenditure (TikTok Ads): Separate billing if placing ads for promotion purposes
  • Logistics agency fee (Fulfilled by TikTok): Usage fee when using TikTok's warehouse and delivery network
  • Return shipping fee/refund commission: Possibility of burden if returns due to customer convenience occur

However, these are all optional, and additional costs do not necessarily occur. They can be utilized strictly as options that can be used according to need.

High Cost-Performance

TikTok Shop is an innovative mechanism that integrates "content-based marketing" using short-form videos and live broadcasts and "purchasing." Compared to conventional e-commerce malls (Rakuten, Amazon, etc.), it has cost benefits like the following:

  • Hurdles at store opening are low (Initial costs unnecessary)
  • Risk is low because you only pay commissions according to sales
  • Costs for construction and maintenance of your company's own e-commerce can be significantly reduced

For this reason, TikTok Shop can be said to be a very cost-effective sales channel for individuals and small-scale businesses wanting to achieve results with limited resources.

Benefits and Drawbacks

While TikTok Shop provides an innovative purchasing experience, it cannot be said to be an all-purpose solution for all sellers.

Here, we concretely organize the "main benefits and drawbacks" of introducing and utilizing TikTok Shop.

[Benefits]

1. Short Purchasing Funnel and High Conversion Rate

TikTok Shop has an extremely short funnel from videos or live broadcasts to immediate purchase and is structured in a way that easily leads to purchase at the moment a user's "want" emotion reaches its height.

It is particularly effective for Generation Z and Millennials, who perform many impulse buys and entertainment-like purchasing behaviors.

2. Overwhelming Reach to the Young Generation

More than approximately 20 million users utilize TikTok in Japan alone, and its center is 10s-30s.

Its influence on the young generation is very high even compared to other SNS, and it has great potential as a means of appealing to the generation that will carry future consumption.

3. Low-Cost Entry

As described in the previous section, risk is very low because there are no initial or monthly fees and it is a performance-based system where commissions are paid according to sales.

A great appeal is that it is also easy to start for test sales of new products or as a side job-like business.

4. Integration with the Creator Economy

Many influencers and video creators are already active on TikTok, and by collaborating with them, more effective sales promotion becomes possible.

By having products introduced via creators, natural purchasing behavior can be encouraged without people feeling "ad-like."

[Drawbacks]

1. Continuous Content Production Required

To increase sales with TikTok Shop, the appeal of products themselves is important, but "quality and frequency of video content" to convey it is equally important.

Since labor for continuous regular posting, trend catch-up, live broadcasts, etc. becomes necessary, it may become a burden for businesses with limited structures and resources.

2. Poor Compatibility with Some Product Genres

Due to the nature of TikTok, products for young people such as apparel, beauty, and gadgets have high affinity, whereas it tends not to have good compatibility with **high-unit-price, high-involvement products (real estate, BtoB products, etc.)**.

Whether a product can be thought of as something "one wants immediately upon seeing" is the key.

3. Consideration for Legal Regulations and Expression Required

In genres such as beauty, health, and food, there is a risk of contradicting laws and regulations such as the Premiums and Representations Act and the Pharmaceutical and Medical Device Act.

For example, excessive expressions such as "absolutely lose weight" or "miracle cosmetics" are NG. In TikTok Shop, where appeal via video is central, expression that does not invite misunderstanding and clear presentation of evidence are required.

4. Fierce Competition and Need for Differentiation

Since it is a platform rapidly gaining popularity, entering businesses are also increasing daily.

As similar products increase, how one can differentiate with "video quality," "worldview," "seller's character projection," and so on becomes a key point for achieving results.

Overall...

TikTok Shop is a sales channel that utilizes the strengths of "video x emotion x immediate purchase," which differ from conventional e-commerce.

Compatibility is very good particularly with products targeting the young generation and items that look good on SNS, and large returns can be expected if operated appropriately.

On the other hand, continuous content creation and discerning suitability for each genre also become keys to success.

Tips for Success and Strategic Use

Simply listing products is insufficient for achieving results with TikTok Shop.

Strategic operation of "how to make it look attractive," "who to deliver IT to," and "how to connect it to purchase" is indispensable. Here, we introduce five success points for effectively utilizing TikTok Shop.

1. Turn Short Videos into "Stories," Not Just "Product Introductions"

TikTok users are sensitive to ad-like content. Therefore, a video that just introduces a product has a high possibility of being skipped.

Many successful sellers are conscious of video creation where a product itself is incorporated as part of a story. For example:

  • Diet food => Post as a diet struggle record
  • Beauty cosmetics => Have it appear in morning routine videos
  • Apparel => Staged as one scene of a date coordination

Conveying not the "reason to buy the product" but the "worldview that makes one want to use the product" leads to conversion.

2. Collaboration with Creators

Many influencers and micro-creators are active on TikTok, and collaboration with them is very effective.

In cases where "one doesn't have the leeway to make videos oneself" or "wants to expand recognition," one strategy is to request product introduction from creators using TikTok Creator Marketplace or the like.

Such posts easily function as a "reliable third-party review" for viewers and can lower the psychological hurdle to purchase.

3. Utilize Live Streaming

Differing from video content, live broadcasts are precious opportunities where selling can be performed while being connected with viewers in real-time.

Particularly utilization like the following is effective:

  • Demonstrate how to use products
  • Guide through limited-time coupons or sales
  • Reply to question comments on the spot
  • Use as a "live version catalog" to introduce multiple products collectively

Live broadcasts have the power to encourage "immediate decision," and many cases are seen where high sales are achieved in a short period.

4. Maintain Frequency of Posting and Get on the Recommendation Feed More Easily

Whether it is displayed on the TikTok "For You" feed (approx. whether it goes viral) is strongly influenced by the number of posts and **video reaction rate (viewer completion rate, engagement, etc.)**.

Therefore, successful brands and sellers keep in mind operation that would be favored by the algorithm by continuously posting multiple videos per week. Staging that "draws viewers in within the first few seconds" is particularly important.

5. Amplify Traffic through Concurrent Use of TikTok Ads

Posts in TikTok Shop can basically be expanded for free, but if you aim for more certain customer attraction and sales, utilization of **TikTok Ads** is also recommended. If ads are used, you can certainly reach your target group, directly leading to expansion of shop and product recognition and sales promotion.

Major ad types include items like the following:

  • Spark Ads: A format where existing posts can be turned into ads
  • In-Feed Ads: Ads naturally inserted into the recommended feed
  • TopView Ads: The highest ad slot displayed at startup (high-priced)

It is possible to accelerate sales in TikTok Shop through the combination of ads and natural posts.

As described, the **three axes of "strategic outgoing x content power x targeting"** are indispensable for success in TikTok Shop. Not just simple listing but creating a "mechanism that makes people want to buy" within the unique culture of TikTok is required.

Success Patterns from International Case Studies

TikTok Shop has already been ahead in deployment in multiple countries such as the US, the UK, and Southeast Asia, and many successful cases have been reported.

In these cases, many hints and commonalities for utilizing TikTok Shop in Japan in the future exist properly.

Here, we introduce three particularly helpful cases and unravel their respective points.

Case 1: MySmile

Reference: https://ads.tiktok.com/business/en-US/inspiration/mysmile-scales-distribution-with-TikTok-Shop

MySmile (a teeth whitening product brand) entered TikTok Shop for the purpose of constructing a new distribution channel through TikTok Shop and accelerating sales, although it had been selling on Shopify and Amazon until now.

Measures Utilized

1. Deployment in TikTok Shop

Utilized the mechanism where purchase can be completed within TikTok and smoothed the customer's purchase flow.

2. Ad Strategy through Shop Ads

Introduced Shop Ads (ads for TikTok Shop) and significantly improved ad performance through closed-loop optimization utilizing user behavior data.

3. Creator Affiliate Program

Partnered with creators who actually use the products and produced reliable demonstration videos. Those videos were also utilized in Video Shopping Ads.

Results

  • Achieved GMV (Total Distribution Value) of over 1,000,000 dollars in TikTok Shop alone
  • Maintained ROAS (Return on Ad Spend) of 3x
  • Reduced CPA (Cost Per Acquisition) by 80% compared to conventional types (web induction type, etc.)
  • TikTok Shop demonstrated higher ad effects than other channels (company site, Amazon), and they came to concentrate ad budgets on TikTok.

Case 2: Cuza Candies

Reference: https://ads.tiktok.com/business/en-US/inspiration/cuzacandies-promote-case-study

Cuza Candies manufactures and sells freeze-dried candy themselves. In the process, they aimed for sales expansion while nurturing the brand centering on TikTok with the goal of supporting the mother's retirement.

Measures Utilized

1. TikTok Promote

Utilized Promote for the purpose of "More Product Purchases" and promoted improvement in video viewing, number of followers, and GMV (Total Distribution Value).

2. TikTok Shop

Used the shopping function where purchase can be completed within TikTok and provided a smooth purchasing experience while preventing viewer dropout.

3. TikTok Ads Manager

Utilized ad formats such as Video Shopping Ads and effectively increased sales through utilization of creatives and ad operation.

Results

・Total sales: Approx. 962 units

・GMV (Promote only): Approx. $23,000

・ROAS (Return on Ad Spend): 2x

Case 3: Love & Pebble

Reference: https://ads.tiktok.com/business/en-US/inspiration/smb-love-and-pebble-tiktok-shop-ads

While the clean beauty brand Love & Pebble, shortly after its founding, reached expansion of recognition from viral posts on TikTok, it had issues with profitability and ROI in ads.

Using the introduction of TikTok Shop as a catalyst, they aimed for improvement of return on ad spend (ROAS) and reduction of CPA (customer acquisition unit price).

Measures Utilized

1. TikTok Shop Introduction + Creator Affiliate Program Utilization

Participated in TikTok Shop and implemented performance management (with rewards) on a post basis through the Creator Affiliate system.

2. Conversion of Organic Posts to Ads (Shop Ads)

Distributed natural videos by creators of the brand as Video Shopping Ads and deployed integrated optimization of organic and ads.

3. Data-Driven Measures by Shop Ads

Promoted ad optimization in closed-loop form utilizing in-TikTok payment/purchase data.

Results

・Sales: +1,194% compared to before pro-motion measures (growth of over 12x)

・ROAS (Return on Ad Spend): Approx. 3.2x

・CPA (Cost Per Acquisition): Dropped by approx. 409% from before (approx. 1/5)

・Ad results: Approx. 240 purchase conversions, 250,000 ad impressions

・Follower increase: Gained over 3,000 fans on TikTok

What are the Common Keywords in Success Stories?

  • Sense of liveness and interactivity
  • A story-like video direction
  • Existence of reliable third parties (UGC, influencers)
  • Funnel design that draws out the "want to buy" feeling

These elements can be sufficiently reproduced in the Japanese market as well.

How one can create a "story that moves people," not just simple sales, is the key to TikTok Shop success.

Future Outlook and Potential in the Japanese Market

Full-scale deployment of TikTok Shop in Japan has only just begun in 2025, but its potential is extremely large and it is attracting attention from many industry insiders. Here, we investigate the future outlook and potential in the Japanese market.

SNS and E-commerce Integration Is an Irreversible Trend

While SNS evolves from mere communication tools to platforms for information gathering and purchasing behavior, TikTok Shop is a representative example that seamlessly connects "video viewing" and "purchasing."

In Japan, expansion of e-commerce channels utilizing SNS such as LINE Shopping and Instagram Shopping continues, but TikTok Shop can appeal more directly to user emotions in the form of "short-form video."

This flow can no longer be reversed, and it is thought that SNS x e-commerce will become the mainstream of purchasing in the future.

Capturing Changes in the Consumption Behavior of the Young Generation

The Japanese young generation increasingly tends to "obtain information from video content and purchase it as it is if they like it."

Particularly for Generation Z, discovery purchases on SNS and video platforms are increasing more than in conventional web search-based e-commerce. TikTok is located at its forefront, and its reach to this generation overwhelms other platforms.

For companies to capture this market, strategies utilizing TikTok Shop are indispensable.

Japan-Specific Issues and Measures

On the other hand, unique business customs and legal regulations also exist in the Japanese market, and ingenuity is also necessary for success. For example:

  • Complexity of shipping/return handling: Response to various shipping companies and return regulations is necessary
  • Thorough legal compliance: Attention to the Pharmaceutical and Medical Device Act and the Premiums and Representations Act is required
  • Acquiring user trust: High wariness against fake reviews and fraud-like acts

Such issues can be overcome through polite customer response and improvement of compliance awareness.

Future Market Expansion Forecast

According to a report from a survey company, the domestic live commerce market is forecast to grow to a scale of tens of billions of yen in the next few years. TikTok Shop will likely play a role as the core of this growth.

Also, ByteDance, TikTok's parent company, is promoting further functional enhancement and logistics partner expansion for the Japanese market, and improvement of convenience is expected.

Chances for SMEs and Individual Creators

TikTok Shop becomes a new business opportunity not only for large companies but also for small and medium-sized enterprises (SMEs) and individual creators.

Since you can start with low costs and gain fans through creative outgoing, high profitability can be realized albeit on a small scale.

It will also lead to development of new customer groups that could not be reached with previous e-commerce and rediscovery of product value.

Summary

TikTok Shop is an innovative e-commerce platform that utilizes the power of video content and completes everything from viewing to purchase within the app. Differing from conventional e-commerce sites and ads, it has a feature of directly appealing to user emotions and promoting impulse buys.

In this article, we explained the basic mechanism of TikTok Shop, main functions, flow to store opening, cost structure, benefits/drawbacks, tips for success, and even overseas successful cases and the outlook for the Japanese market in detail.

In the Japanese market, integration of SNS and e-commerce accelerates, and TikTok Shop is an entity running at its forefront. Further functional evolution and strengthening of logistics structures are expected in the future, and convenience will likely heighten for both users and store openers.

There is a possibility that companies and individuals can grasp new growth opportunities that do not stop at existing e-commerce by strategically utilizing this new sales channel. We recommend paying attention to future trends while trying to challenge early on.


TikTok Shop is an e-commerce channel indispensable for the coming generation, which seamlessly connects "seeing" and "buying" by fully utilizing video and live broadcasts. However, when actually operated, many people will face various issues such as **"video production doesn't continue," "I don't know what kind of planning will go viral," and "collaboration with creators is not possible."**

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