Why 90% of Sellers Will Fail on TikTok Shop (Unless They Have One of These 5 Moats)

You’ve seen the screenshots on X or LinkedIn:
“$100K in 30 days.”
“Scaled to 7 figures with one product.”
“500+ creators posting for free.”

It looks easy. But the reality is: most sellers won’t make it. That’s not meant to scare you. It’s meant to warn you.

TikTok Shop is growing fast. It’s easier than ever to spin up a listing, send products to creators, and throw money into ads.

But growing consistently? That’s hard. Because the average seller is undifferentiated. The product isn’t special. The offer isn’t strong. The margins are tight. And the competition is fierce.

To stand out — and stay ahead — you need a moat.

A moat is what protects your shop from being easily copied or outcompeted. It gives you an unfair advantage that’s hard to replicate.

And on TikTok Shop, I’ve found there are only five types of moat that really matter:

1. A Perfect Viral Product

This is the holy grail — a product that feels made for TikTok.

It:

• Solves a real pain point

• Has a satisfying or curiosity-driven demo

• Shows instant results or transformation

• Sparks emotion (humor, surprise, awe)

• Can be bought on impulse

Think about peel-off masks, car dent removers, walking pads, or even trending snacks. These products don’t need a brand. The product is the content.

The algorithm does the work if the product is viral-ready. And when you pair that with affiliates or a solid ads strategy, you can scale hard and fast.

But the downside? There’s no real defensibility. These products burn fast. Competitors rush in. Prices race to the bottom.

So unless you have something else to protect you (see #2–#5), you’ll have to ride waves — not build a brand.

2. A Highly Efficient Supply Chain

This is the unsexy but essential moat.

Margins matter. Especially when TikTok Shop is pushing aggressive promos, affiliate commissions, and free shipping.

If your COGS are 2x your competitor’s, you lose.

Sellers with tight operations — whether they’re manufacturing directly, working with efficient 3PLs, or sourcing smartly from overseas manufacturers — can afford to:

• Run deep discounts

• Outbid others for ad space

• Offer creators good commissions

• Test new products and launch faster

This is the moat that helps you win even if your product isn’t the most viral. You're simply more profitable and scalable.

It’s also the moat most overlooked by newer sellers chasing quick wins. To sustain at scale on TikTok Shop, I see this being the no.1 factor. This also explains why 70-80% of the top 100 sellers on TikTok Shop are Chinese manufacturers.

3. Access to Creators

TikTok is a creator-driven platform. That’s not changing.

If you don’t have a way to consistently get high-quality content from creators, you’re dead in the water.

Sellers who win here have:

• A CRM of high-performing affiliates

• Strong relationships with niche creators

• Systems to onboard, brief, train, and activate creators weekly

• Data to double down on top performers

This doesn’t just feed your TikTok Shop listings. It also powers your ad creatives, retargeting, and organic strategy.

You can have a decent product, but if you’ve built trust with 100+ solid creators — that is your moat.

Most sellers don’t want to do the relationship work. So if you do? You’ve got leverage. Note: training creators and building trust take time.

4. A Successful or Well-Known Brand

Let’s be honest: some sellers just start ahead.

If you already have a brand people love — or at least recognize — you can plug into TikTok Shop and scale faster than a no-name seller ever could.

These brands win because:

• They have built-in trust (no need for 1000s videos to convert)

• Customers search for them on TikTok and Google —- omnichannel presence is key

• Creators are more open to working with recognizable brands

Look at what brands like LANEIGE and Crocs are doing on TikTok Shop. Their brand power gives them a head start — and a safety net.

If you’re a newer brand, this may not be your moat yet — but you can build toward it overtime.

5. A Talented In-House Creator Team or Founder

Some of the best TikTok Shops are built by creators, not sellers.

They know how to speak to the algorithm. They understand storytelling. They can test 50 hooks in a day without overthinking.

Having a talented in-house team (or a founder who’s good on camera) is a massive unlock. You don’t need to wait for UGC. You’re not at the mercy of affiliate submissions.

You are your content engine.

The feedback loop gets tighter. The testing cycle gets shorter. And your cost per video goes way down.

This is why you’re seeing more sellers hire full-time content creators or build mini studios in-house to go live. It’s one of the most sustainable moats in the long run.

So... Which Moat Do You Have?

If you’re struggling to get traction on TikTok Shop, ask yourself this: What’s stopping someone from copying my product, undercutting me on price, and outselling me with better content?

If the answer is “nothing,” it’s really really hard to scale sustainably on TikTok Shop and that’s why most sellers will try it out and stop eventually.

And the best sellers aren’t relying on just one. They’re stacking moats.

They have a viral product, yes — but they also have better margins on products. They’ve built an in-house creator team. And they’ve locked in exclusive relationships with top loyal affiliates.

That’s the level of play that makes you unstoppable.

Final Thought

TikTok Shop is still early. There’s room to grow. But the bar is already rising.

Don’t just chase virality. Build leverage.

Moats aren’t sexy. But they’re what separates the flashes in the pan from the long-term winners.

Start building yours now.