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What is TikTok Shop?
TikTok is officially kicking off its US e-commerce efforts with the launch of TikTok Shop after testing the feature since November 2022.
According to the platform, over 150 million people all over the United States tune in to the application for new content. They’ve even been behind the community-driven trend of #TikTokMadeMeBuyIt, which has “inspired people to discover and share the products they love” on the video-sharing application.
The new feature will now bring shoppable videos and live streams directly to users’ For You feeds. This gives brands and creators the tools they need to directly sell to customers through shoppable content on the application.
The Shop tab will help businesses display their products on a new product marketplace and customers can easily search and discover promotions. Users can now easily browse product tiles, read reviews, and purchase directly from a favorite brand’s profile directly from the company’s profile page on TikTok.
Additionally, a new logistics solution that lets merchants focus on their products while TikTok Shop stores, picks, packs, and then ships sellers’ products to customers.
According to the company, the shop “empowers brands and creators to connect with highly engaged customers based on their interests, and it combines the power of community, creativity, and commerce to deliver a seamless shopping experience.”
The shop process even incorporates a product showcase on brand profiles, known as shop ads, which enable users to purchase from their promotions and secure check-out via “trusted third-party payment platforms” to facilitate in-app purchases.
TikTok Shop is already available throughout parts of Asia and the United Kingdom. According to Reuters, Southeast Asia, a region with a young adult population of approximately 310 million generates more than 325 million users to the app every month. TikTok was able to facilitate $4.4 billion of transactions across Southeast Asia last year, up from $600 million in 2021.
Bloomberg predicts this new feature will help TikTok reach its goal of quadrupling its merchandise sales by the end of 2023 and hit $20 billion. Perhaps expanding to more regions will speed up TikTok’s goal, but only time will tell.
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