How Sebastian Esqueda Scaled to $5M on TikTok Shop

Background and First Steps

In 2017, while still in high school, Sebastian Esqueda began sharing his dropshipping journey on YouTube. He used Instagram and Shopify to test trending items, working with micro-influencers to kick off sales. At that point, he saw how simple it was to hit a reliable profit margin by sourcing products from cost-effective suppliers and running basic ad campaigns on Facebook.

Building a Testing Lab

Rather than chasing every new fad, Sebastian decided to go deep on process. He created multiple stores and turned them into live experiment zones, testing landing pages, ad angles, email flows, and price points. That steady improvement added up. By 2020, he was hitting seven figures in annual revenue, almost entirely driven by Facebook ads and automated funnels.

Spotting TikTok Shop Early

When TikTok introduced its in-app shopping feature in 2021, Sebastian jumped on it right away. He noticed how the "For You" algorithm gave brands organic exposure without heavy ad budgets. By listing his existing winning products on TikTok Shop, he was able to tap into fresh audiences with minimal setup time.

Influencer-Driven Sales

The secret was recruiting creators via TikTok’s native marketplace. Sebastian offered a 20% commission on each sale and shipped free product samples. This approach built trust, viewers saw genuine unboxings and demos instead of straight ads. A single post from a well-targeted influencer could drive thousands of dollars in sales almost immediately.

Scaling with Automation

He built a simple playbook: source, list, recruit, ship, and optimize. By automating creator outreach and tracking performance in a spreadsheet, he could launch new products weekly. Within a year, his TikTok Shop brands alone passed $5 million in revenue, with profit margins that outpaced his previous stores.

Key Learnings

• Master the fundamentals, product research, ads, email flows, before chasing new channels.
• Test in small batches; use stores as real-time labs for split tests.
• Leverage TikTok creator tools for organic reach without high ad spend.
• Offer clear instructions and commissions to get quality video content from influencers.
• Automate tracking to identify top-performing creators and double down fast.
• Focus on frictionless purchase paths to boost conversion rates.