Why Is TikTok Shop So Cheap? A User vs Seller Perspective
by Olivia Pasfield
We've all been sucked into the amazing prices and special deals that TikTok shop offers, but let's face it, many of us are left asking: Why is TikTok Shop so cheap? And, more importantly, is TikTok Shop safe to use?
Let’s break it down from both the buyer and seller perspective—because the truth is, this isn’t just about cheap deals, it’s about how TikTok shop has changed the way we shop and what we consider as, 'low prices'.
The User’s Perspective: Deals That Seem Too Good To Miss
For buyers, TikTok shop has become the go to for very cheap goods and constant flash deals on products that undercut regular online retailers such as Amazon. In fact, in 2024, 44% of UK adults purchased on the platform out of all of its users.
We've all been there - you see a viral video of a product and within minutes it's on its way to you! But here's the reality of why TikTok shops' prices are so low:
TikTok subsidies: TikTok is still in growth mode with its shop feature. Unlike other platforms, the social media app funds promotions, covering part of the delivery cost or allowing seller's to provide amazing bargains by footing part of the bill. From TikTok's part, this is an incredibly smart tactic: by covering part of your bill (without you knowing), it makes the low prices irresistible.
Direct-from-manufacturer sales: A big part of TikTok shop's business model is cutting out the middleman. Products are often shipped directly from factories and warehouses, often in China, which keeps costs low. For many shoppers, that means getting access to near-wholesale pricing.
"Dupe" products: Let's be honest, TikTok shop sells plenty of product "dupes". Whilst you may be getting a product for a fraction of the price, it also leaves room for complaints over poor quality items or fake goods.
Lower seller fees: Platforms like Amazon charge high commission rates, sometimes hitting 15%. Whereas TikTok shop only charges about 5%. Since sellers pass on those savings to customers, affordable products pop up everywhere on TikTok Shop.
Tiktok shop is an irresistble, convenient way to shop for many users, offering special deals, cheap goods and year round promotions! Not to mention, you can get just about everything on TikTok shop. But as we're going to discuss, cheap doesn't always mean safe...
The Seller’s Perspective: A New Way To Earn Profit
TikTok Shop can be extremely profitable for many small businesses and entrepreneurs. As seen with UK-based businesses like Hair Syrup, TikTok shop offers sellers sales that other platforms don't - it also offers fewer barriers and fees.
Here’s why sellers love it:
Low entry barriers: Sellers don't need a huge budget to set up their own shop. TikTok offers sellers an affordable way to showcase their products on TikTok Shop with lower fees compared to regular online retailers. TikTok subsidising the cost also works for sellers as they can cut their prices to attract customers whilst still returning a profit.
Free marketing power: Instead of paying for ads, sellers can post videos or work with influencers who already have a huge audience - helping their product go viral! One trending TikTok can skyrocket new sellers’ sales overnight, bringing in potential customers they’d never reach on Amazon or eBay.
Younger audience: TikTok shop often resonates with a younger audience (usually Gen Z and millennials). This demographic is more likely to trust online reviews and impulse buy! A survey also showed that many UK adults purchased products from TikTok specifically because of viral videos.
Volume > margin: TikTok's algorithm favours order volume and engagement. Sellers are often happy to reduce their prices to increase visibility and attract more customers. Even if margins are razor-thin, the high number of sellers’ sales often compensates.
Of course, sellers also face risks: counterfeiters undercutting them, customer service complaints if shipping takes too long, and thin profit margins. Some sellers even report that their seller’s TikTok account disappeared after issues with compliance or customer complaints—effectively wiping out their online store and all progress overnight. Obviously, this doesn't stop people from selling on TikTok shop and reporting great success.
Is TikTok Shop Safe?
We've covered why it's so cheap, but it still begs the question: Is TikTok shop safe? Well, that entirely depends on who you buy from. Let's go over some of the positives and negatives of shopping on TikTok and a few tips on how to purchase safely.
⭐ Positive Experiences
Many of buyers love TikTok shop for delivering affordable products quickly and often reliably. You can also shop your favourite brands like Garnier and L'Oreal, which in turn increases the legitimacy and buyer-trust for TikTok shop. There's no doubt that Tiktok shop is one of the most popular social media platforms offering an easy, user-friendly online marketplace.
❌ Negative Experiences
On the other hand, TikTok shop only has a 1.4 start rating on Trustpilot, with many users only giving it one star. Common complaints include:
Orders never arriving.
Products arriving that were fake goods or unsafe.
Terrible customer service when issues arise, such as refunds taking weeks, and disputes dragging on.
Sellers disappearing overnight—leaving buyers with no recourse when the seller’s TikTok account disappeared.
Unlike regular online retailers, TikTok is not legally responsible for the safety or quality of products sold by third party sellers. This means that if something goes wrong, you would need to go directly to the seller, which isn't always easy!
A few tips for shopping safely on TikTok Shop
Check seller reviews and always check customer ratings, not just TikTok videos.
Stick to verified sellers or big-name brands.
Avoid buying big ticket items such as electricals from unknown sellers.
Pay with a credit card for large purchases to get extra protection.
Take advantage of the TikTok buyer protection program if something goes wrong.
How Sellers Can Stay Safer
Apply for TikTok Shop verification to show customers you’re genuine.
Be clear about shipping times to manage expectations.
Focus on transparency and quality to build a loyal following.
Final Thoughts
TikTok Shop is cheap for multiple reasons: subsidies, direct sourcing, low seller fees, and the viral nature of TikTok itself. For new customers, it's a chance to take advantage of the great deals and cheap goods on offer. However, it does come with risks; TikTok scams, poor quality items, fake goods and unsafe products.
For sellers, TikTok shop offers a chance to rapidly increase sales, attract potential customers and make a good profit. Being a seller also has its risks; counterfits undercutting you, customer complaints or losing your own shop overnight.
Bottom line? TikTok shop can be a great ecommerce platform to suit buyers and sellers. Whatever side you're on, the safest approach is to be cautious, do your research and make the most of what the social media's shopping service offers.
FAQs About TikTok Shop
Why is TikTok Shop so cheap?
Because TikTok subsidises deals, sellers often ship directly from manufacturers, and overheads are low. Viral marketing can also keep costs down compared to traditional advertising.
Is TikTok Shop legit?
Yes, TikTok Shop itself is a real platform. The issue is that third-party sellers vary — some are excellent, some are scams. Sticking to verified sellers and brands helps reduce risk.
Do items take a long time to ship?
Sometimes. Products from UK-based sellers can arrive quickly, but items from China can take longer, be sure to check the delivery times before purchasing your item to avoid disappointment.
What happens if my item doesn’t arrive?
You can usually request a refund through TikTok Shop. Success rates vary, which is why paying with a credit card gives extra protection.
Can small businesses succeed on TikTok Shop?
Yes! Hair Syrup is proof that small brands can thrive. With the right content and customer engagement, TikTok Shop can be a powerful e-commerce platform for many businesses.
