February 08, 2021
TikTok to Grow E-Commerce Opportunities
The social media app is planning to add livestreamed shopping experiences, among other new selling tools.
Popular social media app TikTok is looking to grow its e-commerce options, with virtual catalogs, product links and livestreamed shopping shows.
Online shopping has seen tremendous growth during the pandemic, and so-called “social commerce” is the natural next step in the evolution of retail. In fact, eMarketer predicts that sales via social media in the U.S. will grow by 34.8% this year, reaching almost $36.1 billion. Naturally, TikTok and the content creators thriving on the app want in on the action.
Known for short-form videos and a younger-skewing audience, TikTok has three new e-commerce integrations planned, according to a recent report in the Financial Times. First is a tool that lets its most popular users share links to products and automatically earn a commission on sales. Second, brands will be able to showcase catalogs of their products on the platform. And third is “livestreamed” shopping via mobile. Similar to old-school television shopping networks, this will allow users to watch TikTok stars showcase various items, but instead of having to call an 800 number and make three easy payments of $19.95, they’ll be able to buy the items they want via a few taps on the platform.
Exclusive: The Chinese-owned app is planning an expansion into ecommerce in the US, including a tool that lets popular users share links to products and earn commission on sales https://t.co/ej0ZR9BjjS
— Financial Times (@FinancialTimes) February 8, 2021
All three of the proposed tools have been in testing or development for a while. Last year, for example, TikTok announced a partnership with Shopify that brought it one step closer to in-app selling. And back in December, TikTok teamed up with Walmart for an hour-long shoppable livestream called the Holiday Shop-Along Spectacular, where TikTok influencers showed off their favorite product picks from Walmart and viewers could instantly purchase them without leaving the TikTok app.
“Culturally, TikTok is well placed for livestreamed commerce to capture the dissolving distinction between content and commerce because it doesn’t feel as polished as other platforms,” Jack Smyth, creative technology officer at WPP’s Mindshare, told the Financial Times.
The new tools will bring TikTok into closer competition with rival Facebook, which made a concerted push into e-commerce last year.