Why TikTok Shop's Multifaceted Approach Can Make Social Commerce Work in the US
TikTok
TikTok has officially launched TikTok Shop in the US, introducing a native e-commerce solution to the platform. This initiative prominently displays shoppable content from creators, brands, and merchants, offering users an immersive shopping experience within the app. Key features of TikTok Shop include:
In-Feed Video and LIVE Shopping: Creators, brands, and merchants can tag products, making their videos and live streams shoppable and visible in the For You feed.
Product Showcase: Brands can prominently display their products on their profile pages, curating collections for viewers to explore. Users can access product details, read reviews, and make purchases within the app.
Shop Tab: A dedicated marketplace provides brands with a platform to showcase their products. This section offers users a searchable interface with product listings and shoppable content.
Affiliate Program: Creators can earn commissions by driving sales for participating brands through TikTok's Affiliate Program.
A Significant Milestone
The launch of TikTok Shop in the US represents a significant milestone in the platform's evolution. The hashtag #TikTokMadeMeBuyIt is already well-known, highlighting TikTok's influence in social commerce. With its own e-commerce solution, TikTok aims to streamline the selling process for creators, brands, and merchants while enhancing the product discovery and purchasing experience for consumers. This move effectively integrates e-commerce directly into the TikTok ecosystem.
TikTok's Multifaceted Approach to Social Commerce
In recent years, various platforms have explored social commerce in the US, primarily through live shopping, which has progressed slowly.
TikTok's multifaceted approach, encompassing live shopping, in-feed shoppable videos, product showcases on profiles, and a dedicated marketplace, provides a range of options for sellers and buyers, as opposed to leaning only on live shopping.
Unlike Western markets, where live shopping serves as a primary driver for commerce, the majority of US consumers are not inclined to shop at specific times, as live shopping necessitates.
TikTok, in response, provides consumers with various shopping touchpoints, catering to both real-time (live shopping) and on-demand (in-feed videos) preferences, as well as offering a marketplace through the 'Shop' tab. Rather than directing consumers toward a single shopping behavior, TikTok allows them the flexibility to shop in a way that suits their individual preferences, which is a very important piece.
Challenges Ahead
TikTok won't be without its challenges, however. One of the biggest concerns is whether users will become overwhelmed by an influx of videos featuring creators and brands selling, especially in the For You Feed. While people do come to TikTok to discover products, entertainment remains a core factor. If videos become too sales-oriented and less entertaining for users, it could negatively impact TikTok's dynamics.
Other challenges include concerns about the quality of certain products and potential violations of intellectual property rights—challenges that Amazon has encountered in the past and still does today.
The Future
In the coming months, we'll gain a better understanding of TikTok Shop's impact in the US.
One expectation I have is that TikTok may eventually host its own shopping event, similar to Amazon Prime Day, with creators playing a significant role. Over the summer, Amazon, Walmart, and Target also went head-to-head with their shopping events. TikTok joining in would add even more competition and provide shoppers with additional ways to discover products, save money, and connect with their favorite creators.
