TikTok Shop Operations Explained: Three Key Models to Help You Choose the Right Path
As TikTok Shop rapidly gains traction globally, more sellers are jumping on board. This article provides an in-depth analysis of the three primary TikTok Shop operation models to help you identify the most suitable path for your business.
I. Overview of Operation Models
Model Type | Advantages | Disadvantages | Suitable For | |||||
Self-Operation | - High control | - Customizable branding | - Long-term growth | - High costs | - High content demands | - Slow initial ROI | Mid to large teams | Long-term planners |
Winning Product / No-Inventory Model | - Low cost | - Fast to launch | - No inventory pressure | - Unstable supply chain | - High product similarity | - Risk of policy violations | Small teams or individuals with product selection ability | |
Creator / Agency Partnership | - Quick results | - High order volume | - No need to appear on camera | - Unstable creators | - High costs | - No content asset ownership | New sellers | Resource-integrated teams |
II. Detailed Model Breakdown
Self-Operation Model
This model refers to brands or sellers managing all aspects themselves—from product sourcing to fulfillment and customer service—without relying on creators or agencies.
Channels: Livestreaming and short video content
Core Needs:
- Video team: animation, filming, copywriting
- Livestream team: hosts, moderators, customer service
Operation Flow: Gain organic traffic via consistent short videos → Convert through regular livestreams → Build a content + conversion + retention loop.
Pros:
- Scalable once the model works
- Independent from creators
- Builds long-term brand assets
Cons:
- High operational costs
- Requires strong content production capability
- Results take time
Best For: Sellers with solid teams, stable supply chains, and long-term goals.
Winning Product / No-Inventory Model (“Wuhu Model”)
This popular approach involves sourcing trending products from platforms like Amazon, AliExpress, or 1688, and listing them via ERP tools directly onto TikTok Shop.
Operation Logic: Low-cost traffic strategy to push viral items → Use third-party logistics or agents for fulfillment.
Pros:
- Low startup cost
- Fast to test and launch
- No inventory risks
Cons:
- Unstable overseas supply chain
- High risk of product duplication and price wars
- Prone to policy violations
- Tax and compliance issues in target markets
Best For: Individuals or small teams with strong product selection and high risk tolerance.
Creator / Agency Partnership Model
Currently, the most mainstream model on TikTok Shop. Brands collaborate with creators to gain exposure and drive sales.
Key Resources:
- Overseas creators (for product seeding)
- MCNs or TAP agencies (resource hubs)
How It Works: Brands send products to creators → Creators promote via video or livestream → Creators earn commissions based on GMV (some charge additional fixed fees).
Pros:
- Fast traction and order volume
- No need for personal appearances or large teams
- Scales quickly with the right resources
Cons:
- Creator partnerships can be unstable
- High commission and potential fixed fees
- No ownership of content assets
- Creators may switch to competitors
Best For: New sellers or teams good at resource integration.
III. Conclusion
When selecting your TikTok Shop operation model, consider the following:
- Self-Operation: Best for mid-to-large teams with long-term plans
- Creator Partnership: Ideal for new sellers and resource-integrated teams
- External Traffic: Requires a team experienced in performance marketing and TikTok operations
Each model has its strengths and weaknesses—the key is to choose the one that aligns with your resources and goals, and commit to executing it thoroughly. Whether you're already running a TikTok Shop or planning to launch, use this guide to map out a tailored path to success.
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