The platform has previously backed down from efforts to push e-commerce. TikTok Shop, as launched Tuesday, has been in testing since November. TikTok facilitated $4.4 billion of transactions across Southeast Asia last year, up from $600 million in 2021, but it still trailed far behind Shopee’s $48 billion of regional merchandise sales in 2022, Momentum Works told Reuters in June.Ĭracking the United States has proven even harder. Southeast Asia, a region with a collective population of 630 million – half of them under 30 – is one of TikTok’s biggest markets in terms of user numbers, generating more than 325 million visitors to the app every month, according to Reuters.īut the platform has yet to translate its large user base into a major e-commerce revenue source in the region as it faces fierce competition from bigger rivals of Sea’s Shopee, Alibaba’s Lazada and GoTo’s Tokopedia.Į-commerce transactions across the region reached nearly $100 billion last year, with Indonesia alone accounting for $52 billion, according to data from consultancy Momentum Works. TikTok Shop is already available throughout parts of Asia and the United Kingdom. Amazon Storefront, launched in 2018, also allows creators to build pages that bring together content and product recommendations to sell to followers, for a commission. TikTokĪmazon has been offering Amazon Live since 2019, a streaming hub that sells items through live videos. TikTok Shop features unveiled by the company on Tuesday. Meanwhile,YouTube partnered with Shopify in 2022 to help creators sell products. Facebook also axed live shopping in October. Meta-owned Instagram killed livestream product tagging and shopping in March and got rid of the shopping tab on the app’s navigation bar. The app’s push into live e-commerce comes as other platforms have struggled with online shopping initiatives. TikTok is looking to quadruple its merchandise sales by the end of the year to hit $20 billion, according to Bloomberg. “With TikTok Shop, we’re giving people a place to experience the joy of discovering and purchasing new products without leaving the app.” “With community-driven trends like #TikTokMadeMeBuyIt inspiring people to discover and share the products they love, TikTok is creating a new shopping culture,” the company wrote. TikTok is also offering “Fulfilled by TikTok,” a program that handles all of the logistics for sellers, including storing, packing and shipping. TikTok Shop allows users to find and directly purchase products used in live videos, tagged in content shown on their algorithm-driven For You page, pinned on brand profiles or marketed in a new “Shop” tab.įor creators, the feature could bring new streams of income by connecting them with brands for commission-based marketing partnerships. The short-form video platform launched an in-app shopping experience in the United States on Tuesday, according to a company blog post, after months of testing. TikTok is officially kicking off its US e-commerce efforts with the launch of TikTok Shop.
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