As more smaller retailers turn to TikTok to grow their brands, many are finding overnight success from viral social campaigns are causing operational headaches, from inventory to fulfilment, new figures from business credit card provider, money.co.uk, reveal.

Its study of over 500 business owners showed that 96% are now using TikTok as their primary growth channel, with 40% using the social platform daily. This use was also translating to success, with six in ten reporting a TikTok had gone viral, helping boost sales and enquiries.

“TikTok is a low barrier to entry. It’s a simple and relatively cost-effective way for businesses to expand their marketing efforts and get their products in front of large audiences,” Matt Browning, credit expert at money.co.uk said.

Over two thirds (67%) of small retail business owners experienced a surge in orders after a video went viral, however, while positive for sales, this was driving friction for business operations.

Two fifths (42%) had run out of stock, 27% had experienced cash flow and staffing problems and as many as 91% struggled to fulfil orders as a result of social-driven demand surges.

“Many get overwhelmed with orders when videos go viral,” Browning added. “TikTok marketing can make for long-term success, as long as businesses properly address and plan for any struggles that may come up.”

Despite these operational challenges, smaller retailers still viewed TikTok as a valuable growth channel, with 81% saying TikTok investment was “worth it” for their businesses.