Paul Jauregui, co-founder of BK Beauty, a cosmetics company, had much to celebrate when he first appeared on a podcast in 2020. At the time, the company had reached $1 million in sales in its first year. Now, two years later, Jauregui is back with more good news: BK Beauty has surpassed a whopping $10 million in annual revenue, bolstered by early success on TikTok Shop.

In an interview with Eric Bandholz, Jauregui discussed the growth challenges, positive TikTok vibes, and more. He explained that managing the growth from $5 to $10 million in annual sales has come with its own set of challenges.

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“We’ve learned a lot. Our business has three components at any given time — supply, demand, and delivery,” said Jauregui. “Along the way, we’ve had supply-related problems, forecasting glitches, and inventory shortages.”

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On the demand side, Jauregui noted that paid customer acquisition was a big part of their recent growth. “We’re doing fulfillment in-house, so our capacity to deliver goods and packages to our customers and get them out the door is reaching a level I never expected. Last month, we shipped over 20,000 packages. We have a daily baseline but still experience huge spikes with various events and launches,” he said.

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Jauregui also discussed the success they’ve had on TikTok Shop. “We’ve been on TikTok Shop for about a month and a half. These are the pioneering times. We’re seeing a lot of success. It makes up about 15% of our total revenue on any given day, and that’s growing,” he said.

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He noted that TikTok is spending a lot of money extending discounts to buyers on the platform — roughly 20-40%. “We don’t pay for that. It drops directly to the bottom line. TikTok also offers free shipping, which goes into my pocket too. Both of those — discounts and free shipping — are helping with conversions,” he said.

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Jauregui also discussed the company’s affiliate program via ShareASale. “However, it was not easy to have an affiliate link on TikTok. There’s no description box below the videos, and not everyone goes into the comments,” he said. “We would see a video on TikTok about us, and our YouTube organic traffic would surge because folks had to Google us to learn more and buy our products. All of that now takes place on TikTok.”

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Jauregui concluded by noting that the company is now focusing on educating creators on TikTok and getting them onto TikTok Shop. “Many creators have not tried it. To help, our team created a guide. We’re contacting creators already talking about us on TikTok. That’s where we see the most success,” he said.

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Paul Jauregui’s success story is an inspiring one. In just four years, BK Beauty has grown from $1 million in sales to $10 million. Much of this success can be attributed to the company’s early success on TikTok Shop. With the holiday shopping period just around the corner, it will be interesting to see how BK Beauty continues to leverage the platform to drive sales and revenue.


Sources: https://www.practicalecommerce.com/new-tiktok-shop-spurs-bk-beauty