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TikTok Shipping vs Seller Shipping vs FBT: Which Is Best?
by Rin Mosher on Jul. 12, 2024
![TikTok Shipping vs Seller Shipping vs FBT](https://www.shipfusion.com/hubfs/TikTokShippingVsSellerShippingVsFBT.jpg)
55.5 million – that’s the number of people who made a purchase on TikTok Shop in 2023, according to Statista. With its popularity only set to grow, ecommerce businesses have every reason to prioritize TikTok shipping going forward. Like with other sales channels, fulfillment and shipping play a massive role in everything from customer satisfaction to brand reputation to repeat sales.
This article weighs everything to consider in the big decision all sellers face today: choosing between TikTok Shipping vs Seller Shipping vs Fulfilled by TikTok (FBT). Keep reading as we compare these options in terms of cost, scope, flexibility, customer service, and more.
What Are the TikTok Shipping Options?
The TikTok fulfillment and shipping system you establish today has the potential to massively impact order preparation timelines, delivery, and customer satisfaction down the line. There are currently three options for TikTok order fulfillment: TikTok Shipping, Seller Shipping, and Fulfilled by TikTok (FBT).
However, there isn’t a one-size-fits-all answer when comparing TikTok Shipping vs. Seller Shipping vs. Fulfilled by TikTok. Picking the right one for your business starts with knowing what each option is. See high-level summaries for all three below.
Seller Shipping
With seller shipping, the merchant assumes all of the responsibilities involved in fulfilling and shipping orders to customers. These include picking and packing orders, procuring shipping labels, uploading tracking numbers, and handling requests for refunds and returns. TikTok is only actively involved in and responsible for facilitating sales transactions in TikTok Shop. TikTok Shop merchants using Seller Shipping can either fulfill their orders in-house or partner with a third-party logistics provider (3PL) to handle fulfillment for them.
TikTok Shipping
TikTok Shipping is a semi-supported arrangement that aims to simplify certain aspects of shipping for TikTok Shop sellers. Although businesses are still expected to prepare and hand parcels off themselves, some aspects of the process are made easier; the main difference is who’s responsible for acquiring labels. In this system, TikTok generates shipping labels for merchants and sends them once they’re ready to print. Like with Seller Shipping, merchants using TikTok Shipping can fulfill TikTok Shop orders in-house or partner with a 3PL.
Fulfilled By TikTok (FBT)
Fulfilled by TikTok (FBT) is an order fulfillment system offered to select merchants on TikTok Shop. It provides end-to-end solutions for ecommerce fulfillment, including warehouse storage, order picking and packing, shipping, and customer service. Sellers use FBT in hopes of benefitting from the convenience and scalability of managed services.
Fulfilled By TikTok vs Third-Party Logistics (3PL) Services
TikTok currently outsources its fulfillment infrastructure from partners across the United States. Inventory is kept, and orders are fulfilled in facilities owned by third parties rather than TikTok itself. This is essentially a form of third-party logistics (3PL), where external service providers handle business logistics operations for a fee.
FBT is slightly different than just working with a 3PL in that TikTok acts as a middleman between the merchant and the 3PL providers within its network. Sellers using FBT cannot choose their own logistics partner – their orders are fulfilled by the partner TikTok chooses.
Comparing TikTok Shipping vs Seller Shipping vs Fulfilled By TikTok (FBT)
There are quite a few differences to note when comparing TikTok Shipping vs Seller Shipping vs FBT. Learn where responsibilities fall across these options below.
At a Glance
Setup Process
TikTok Shipping is the default option for ecommerce merchants on the platform. Upon signing up for TikTok Shop, you’ll be able to designate one or multiple order pickup and return locations (such as your own in-house fulfillment operation or the warehouse of the 3PL you’re working with), as well as select preferred shipping carriers.
Seller Shipping can be set up in the TikTok Shop Seller Center under ‘Shipping Options.’ Turning the ‘Shipped from seller’ shipping option on means assuming responsibility for finding carriers and uploading tracking numbers to the system, both of which can be done from the Seller Center.
Fulfilled by TikTok is currently an invite-only program for sellers who ship at least 6,000 units per month. Those who are eligible to enroll start the onboarding process by sending inventory directly to TikTok's fulfillment centers. The same goes for 3PL solutions, although qualification thresholds vary by service provider. Some accept clients of all sizes, while others focus on helping businesses that ship a minimum number of orders per month.
Fulfillment and Shipping Fees
A confluence of programs and special incentives currently impact how shipping fees are applied to TikTok Shop ecommerce orders. In every case, shipping fees are set by outside service providers.
Businesses enrolled in both Seller Shipping and TikTok Shipping pay the market average rate for shipping services and can choose to either cover the cost themselves by factoring it into product prices or pass it on to customers through shipping charges at checkout. In cases where TikTok’s free shipping promotions apply, merchants cover the shipping costs upfront and receive reimbursement within 30 days.
The only exception to having to pay market rates for Seller Shipping and TikTok Shipping is for businesses working with a 3PL. Well-established 3PLs can lessen shipping expenses through their existing, high-volume relationships with carriers and consolidate those charges into one invoice.
Fulfilled by TikTok fulfillment costs are split in two, with a predetermined rate for the picking and packing of individual items within a seller’s catalog. Little information is currently publicly available on the cost of TikTok’s services in the United States. One UK-based seller reports paying £0.95 to pick and £0.24 to package a £7.5 product.
It’s important to realize that these charges are in addition to several other costs of doing business on TikTok Shop, such as Referral Fees and Affiliate Commission Fees.
Order Returns
Returns are an inevitable part of ecommerce. While their likelihood can be reduced with accurate fulfillment, a few customers will always want to send orders back for other reasons. Catering to this expectation requires a solid reverse logistics system.
With both Seller Shipping and TikTok Shipping, it’s the merchant’s responsibility to approve or reject returns. Requests for select product categories are subject to automatic approval by TikTok, while the rest must be reviewed by the seller within 48 hours. Upon approval, TikTok gives customers the option of arranging shipping themselves or dropping their parcel off to a partner in its returns network. Depending on what the business wants done with unwanted orders, packages may then go to a designated facility for inspection, or be donated or disposed of.
The difference between TikTok Shipping vs Seller Shipping vs FBT here is who processes the items that are kept. Businesses using Seller Shipping and TikTok Shipping can designate their own warehouse or that of their 3PL as a returns address. FBT returns are inspected at TikTok’s fulfillment centers.
In any of these three systems, shipping costs are determined by the product’s category and reason for being returned. A full breakdown is available on TikTok Shop Academy.
Customer Support
Just like returns, customer support is a must for every ecommerce business. That’s true whether you’re using Seller Shipping, TikTok Shipping, or using FBT. The quality of service buyers receive, however, isn’t consistent across all options.
Seller Shipping leaves customer support in the hands of the merchant. Either the business’ in-house team or 3PL will be responsible for responding to inquiries about order status and delivery times, addressing concerns about lost or damaged packages, coordinating the return process, and providing updates on any shipping delays or issues.
TikTok Shipping comes with the option of offloading core customer service issues from in-house and 3PL teams to TikTok, with the exception of return approval and rejection. Businesses are still responsible for addressing product-specific questions and concerns. This hybrid approach aims to balance efficiency with personalized service.
FBT customer support is even more comprehensive, effectively relegating everything to TikTok. There are only a few scenarios where merchants will need to directly accept or deny refund requests. A hands-off arrangement like this can be a good or bad thing – it ultimately depends on TikTok’s performance.
Order Processing and Delivery Timelines
How long does TikTok Shop take to deliver orders? The answer to that question depends on the arrangement at hand. Businesses using TikTok Shipping and Seller Shipping must hand orders off to a third-party carrier within three days. Those using Seller Shipping are also responsible for uploading the order’s Tracking ID, Shipping Provider, and Shipping Service information to the Seller Center before shipment.
Eligible Seller Shipping carriers currently include:
- USPS
- UPS
- FedEx
- DHL
- Amazon Logistics
- AxleHire
- Better Trucks
- Deliver-it
- GLS US
- Lasership
- Lone Star Overnight
- OnTrac
- Spee-Dee Delivery
- TForce
- Wizmo
Businesses using TikTok Shipping and FBT are automatically assigned USPS, UPS, or FedEx delivery based on their preset preferences.
Standard shipping from TikTok’s three main carriers generally takes between two and five business days. Sellers have the option of paying extra for express options like UPS Next Day Air Saver and FedEx Standard Overnight regardless of whether they’re enrolled in Seller Shipping, TikTok Shipping, or FBT.
Determining Which TikTok Shipping Solution Is Right for You
Shipping should play a role in your overall TikTok ecommerce strategy, and choosing which option to use for TikTok fulfillment shouldn't be a rushed decision. Each of the three options available to sellers has something to offer. Be sure to do the following when weighing Seller Shipping vs TikTok Shipping vs Fulfilled by TikTok.
Think About Your Individual Business and Products
The TikTok shipping arrangement you choose should consider both your business and the products it sells. Seller Shipping and TikTok Shipping make the most sense for ecommerce businesses with existing in-house resources and low order volumes; a 3PL can always step in to accommodate growing demand down the line.
It’s a question of capacity – whether you or an existing partner have the space, time, and resources to independently store inventory, pack orders, print shipping labels, and hand parcels off to third-party couriers.
If not, FBT is an alternative. The main difference between it and Seller Shipping with a 3PL is flexibility. Partnering with a 3PL gives you more control over specific warehouse projects like kitting and bundling. This is something that FBT’s large-scale, rigid operations don’t offer.
Some 3PLs have specialized solutions like cold chain logistics for temperature-sensitive items and FDA-compliant warehousing for supplements. Whether that help is worth paying for comes down to the catalog of products you plan to sell on TikTok, but it underscores how robust a 3PL’s resources can be to a growing business.
Consider Scalability and Order Volume
The consideration of scalability goes hand-in-hand with order volume. Small businesses often start out fulfilling orders on their own only to outgrow their in-house capacity as demand increases. If rapid growth is a possibility – which it usually is on social commerce platforms like TikTok – it makes sense to implement a robust system from the beginning.
Seller Shipping and TikTok Shipping with the help of a 3PL guarantees scalability while leaving much of the control in your hands. These companies have the infrastructure to handle sudden spikes in order volume and long-term business expansion. FBT offers a similar level of capacity, but it’s limited to TikTok’s in-network fulfillment centers and terms.
Decide On Your Desired Degree of Control, Flexibility, and Convenience
Control and convenience – which matters more to you as an ecommerce business owner? Ideally, the TikTok fulfillment and shipping method you choose delivers both. But as evidenced by the information we reviewed in the sections above, there are tradeoffs between TikTok Shipping vs Seller Shipping vs FBT.
Seller Shipping provides control and flexibility over how orders are prepared and packed, as well as how post-purchase issues are dealt with. The extra responsibility of handling it all in-house may be worthwhile for businesses that want to ensure every interaction customers have with their brand is a positive, well-curated one.
TikTok Shipping offers a little more convenience in order preparation and returns, but it comes with fewer carriers to choose from. Where the Seller Shipping system currently has over 10 options, this managed solution only has three. That may not be an issue for everyone, considering that USPS, UPS, and FedEx are well-known, reputable companies.
Third-party logistics providers can offer the same degree of outsourced support for both Seller Shipping and TikTok Shipping arrangements, handling TikTok fulfillment so you don’t have to. Working with them is more like a partnership, where services are tailored and managed based on specific business needs.
However, some business owners want a broader array of providers and services. Others prefer an even more hands-off arrangement. Fulfilled by TikTok caters to the convenience-minded by relegating all of the responsibilities of fulfillment, shipping, and returns to TikTok. Anyone who chooses to go this route should just be prepared to follow their terms.
Know How Much Risk and Liability You Can Tolerate
Because it leaves most responsibilities to the seller, most businesses will need a dedicated logistics manager or VP of Operations when taking on Seller Shipping by themselves. That’s the best way to stay ahead of potential issues and offer customers quick resolutions. 3PLs again offer an alternative here by assuming liability for their contributions, which depending on the circumstance, could be limited to shipping or encompass everything from inventory storage to picking and packing. It ultimately depends on the service provider you choose and the Service Level Agreements (SLAs) they commit to.
TikTok Shipping lessens the responsibilities of in-house teams and 3PLs with managed customer service, covered return costs, and potential cost recovery for logistics issues like Delivered not Received (DNR) packages. It’s worth noting, however, that TikTok’s compensation program isn’t comprehensive.
While all DNR claims for compensation can be filed directly with the company, those for lost or damaged parcels are case-specific and may need to go to the shipping carrier involved. That complicates the remediation process while potentially opening your business up to increased liability. Handling everything, including shipping and returns, under a single contract with a 3PL using Seller Shipping is the most hassle-free option.
Fulfilled by TikTok is a similarly simple solution, allowing you to offload customer service, returns, and the resolution of logistics issues to a third party. But just like any other outsourced arrangement, TikTok’s liability will be limited to the case scenarios outlined in its contract. You’ll also need to be prepared to rely on the company’s existing communication channels – currently support tickets and live chat – as these will be your only means of recourse in the event of an issue.
TikTok Shipping vs Seller Shipping vs FBT: Shipfusion Can Support You Regardless
With the differences between TikTok Shipping vs Seller Shipping vs FBT made clear, you now have the context you need to decide which arrangement works best for your business.
Shipfusion can supply the support you need to succeed in any case.
Years of top-tier performance at scale have taught us what it takes to run efficient fulfillment operations, regardless of the sales channel at hand.
Extend our best-in-industry SLA standards to TikTok and benefit from same-day and next-day fulfillment that can seamlessly scale up to meet spikes in order volume. We maintain excellent relationships with major shipping carriers, which means access to big savings on shipping rates.
This performance pairs perfectly with specialized technology-enabled solutions for a variety of use cases. Our TikTok Shop integration makes shipping orders from this social commerce platform easy. Receive inventory management, order status, and lot tracking in one place – plus in-depth insight from real-time data reporting and ongoing support from a dedicated Account Manager. Using FBT? We have wholesale and logistics experts who can handle Fulfilled by TikTok prep for you.
The best 3PL you’ll ever work with is just a couple of clicks away. Get started by contacting a team member today.
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