How two brands are using TikTok Shop as a revenue-driving platform

It’s no surprise that shopping platform TikTok Shop has become the most talked-about social media entity since, well, TikTok. Launched in September 2023, TikTok Shop now makes up over 18% of total US social commerce sales and grew to $15.8 billion in sales last year, according to market research firm eMarketer.

Brands across virtually all categories (from Crocs to Samsung) have jumped on the TikTok Shop bandwagon, though it seems partnering with influencers (commonly referred to as affiliates) could be the most lucrative avenue for businesses. Companies have leveraged QVC-style live videos to create original content on their own TikTok profiles (some creator videos will be labeled with the tag “creator earns commission”).

"TikTok Shop is one of the fastest-growing commerce channels today,” Alex Nisenzon, CEO of e-commerce analytics platform Charm.io, said in an email statement to Revenue Brew. “In just 24 months since launch, it achieved a scale that took Amazon 15 years to reach. The revenue opportunity is significant as top brands are generating upwards of $10 million on the platform every month.”

Revenue Brew spoke with two brands on how they’re using TikTok Shop as a key revenue driver.

Getting Rael

Feminine care brand Rael joined TikTok Shop in October and has already seen growth in sales and its customer base. According to the brand, TikTok Shop has grown Rael’s online business by 52%, and the brand now is the most-followed and highest-growing feminine care brand on the platform.

Kenna Johnson, the brand’s VP of brand marketing, said Rael joined TikTok Shop to meet customers where they are and to tap into its community.

“[The] strategy has been shifting from more of the upper-funnel, awareness-driving media, which we were previously running, and shifting to more of a discovery commerce,” said. “We see TikTok really as a real-time focus group with our core demo: Gen Z and millennial women.”

In addition to reaching its core demographic, Rael’s TikTok Shop has also brought in Gen Alpha customers (those born between 2010 and 2024), thanks to the brand’s educational videos.

Rael is working with over 10,000 affiliates to create user-generated content (UGC) for both their personal TikTok accounts and Rael’s official channel. Johnson said these “creator assets” are outperforming Rael’s own content.

“Trying to scale it as much as possible has really been our key strategy,” Johnson said. “Activating our affiliate community has been our No. 1 priority on growing with TikTok Shop and just expanding our reach and network with these amazing creators.”

Secondhand revenue

For secondhand luxury retailer Fashionphile, TikTok Shop offers a lucrative opportunity as it consolidates the discovery and purchase steps for the customer.

“It collapses the marketing funnel, so the moment of discovery and the moment of purchase now happen simultaneously,” said Lauren Leger, Fashionphile’s senior director of brand marketing. “The timing really matters in luxury resale when people are looking for specific items.”

Fashionphile joined TikTok Shop last fall and has also seen an immediate impact. The brand hasn’t started working with affiliates yet, but has seen success with its own native content, which includes live shopping.

Leger explained that TikTok’s algorithm has helped Fashionphile expand its reach to new customers who are interested in secondhand luxury but aren’t yet familiar with the brand. She said the customers on TikTok Shop are the same but “the way they’re shopping is much different.”

“There is this halo effect for our TikTok channel and really social media at large. While we’re going live, our content is surfaced more often to people within the algorithm,” she said.

She explained that while TikTok is vast, the platform offers a more personal connection to customers than others.

“It’s taking a platform that otherwise was one to many, and still more personal than email marketing because people [can] comment and engage, making it even more personal, true social commerce,” Leger said.