How to set up a TikTok shop in 2026
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TikTok isn’t just an app for dancing trends anymore — it’s where people shop.
From viral products selling out overnight to small businesses building entire brands through short-form videos, TikTok Shop has quickly become one of the most powerful ways to turn content into revenue. And the best part is that you don’t need a huge following or a full eCommerce setup to get started.
If you’ve been wondering how to start a TikTok shop or whether it’s actually worth it in 2026, this guide breaks it all down. From getting set up to understanding costs and creating content that converts, you’ll find everything you need to start selling on TikTok Shop with confidence. Let’s get into it.
In this article:
- How TikTok Shop works
- What you need to start a TikTok Shop
- How much it costs to start a TikTok Shop
- How to start a TikTok Shop step by step
- Tips to optimise and grow your TikTok Shop
- Whether TikTok Shop is right for your business
- How to manage your TikTok Shop income
How does a TikTok shop work?
A TikTok Shop is exactly what it sounds like — a way to sell products directly through content. Instead of clicking through to an external website, they can simply tap the product within the video and check out, all without leaving the app.
Here’s what that looks like behind the scenes:
- You upload products to your TikTok Shop
- You create content that features those products
- TikTok pushes your content to relevant audiences
- Users tap on the product and buy instantly
- TikTok processes the payment and takes a commission
- You fulfil the order and receive your payout
Every extra step in a buying journey is a chance for someone to drop off. TikTok removes those steps, which is why products can go from unknown to sold out very quickly.
What do I need to start a TikTok shop?
If you’re thinking, “this sounds great, but what do I actually need to get started?” — the barrier to start is lower than what you’d expect. To start a TikTok Shop, you’ll need:
- A registered business (sole trader or limited company)
- Sole trader setup is free
- Limited companies cost £100 to register with Companies House directly. Alternatively, you could save some money and register with a provider like Countingup, which offers company registration for free when you sign up for a business account
- A TikTok business or seller account
- Basic business and tax details
- ID for verification
- A business bank account to receive payments
- Products to sell
How much does it cost to start a TikTok shop?
The short answer: it’s free to set up, but it’s not free to run. Like any eCommerce business, there are a few costs to factor in. Let’s take a look at what things you’ll need to pay for to run a successful TikTok shop:
TikTok commission fees
TikTok takes a percentage of each sale, typically between 5% and 20%, depending on your product category.
For example:
- Sell a product for £20
- 10% commission = £2 to TikTok
- You keep £18 (before other costs)
Other costs to consider
- Product sourcing or manufacturing
- Packaging and fulfilment
- Shipping and returns
- Marketing (ads, influencers, content creation – are you going to pay creators to make content for you?)
We know it may seem like a lot to consider. I’s easy to put too much focus on revenue, especially when a product starts gaining traction. But profitability comes down to understanding your margins early, not just after you’ve scaled.
