Tuesday, 30 January 2024, Bengaluru, India
As initially reported by Bloomberg, TikTok is testing a feature that might allow all posts on the app to be purchased. The action is a component of the corporation’s strategy to grow TikTok Shop into a multibillion-dollar American e-commerce giant. TikTok would not offer further information, only confirming that the feature is still undergoing restricted testing.
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After automatically identifying objects in movies, the new test function tells users to “find similar items on TikTok Shop.” Products could only be tagged in the past by brands and influencers who were approved. Thanks to the new capability, more movies on the app would have e-commerce connections.
The announcement coincides with a Bloomberg story from earlier this month stating that TikTok hopes to grow its TikTok Shop U.S. business tenfold this year, up to $17.5 billion. With this objective, TikTok would want to challenge not just Amazon but also Temu and Shein, two other Chinese-owned businesses that have gained popularity in the United States. However, TikTok has something these other businesses need to improve: a successful social media network with millions of prospective users.
During the Black Friday sales and Cyber Monday sales in November, almost 5 million new American users made purchases through TikTok Shop. To put things in perspective, the social media app has about 150 million American users.
TikTok Shop allows producers to tag things so that users can purchase products from in-feed and live videos. The app officially launched in the United States in September 2023. Adding TikTok Shop links to the app’s average content may not be a welcome development for some users.
Recent data suggests a deceleration in TikTok’s growth, prompting questions about whether the slowdown can be attributed to the platform’s TikTok Shop e-commerce endeavors. While the average quarterly increase in monthly active users on TikTok was 12% throughout 2022, this figure diminished to 3% year over year per quarter in 2023. The declaration follows the American debut of TikTok Shop.
There have been online debates on whether TikTok Shop “ruined” the app, with some complaining that the platform was becoming an “ad-filled wasteland.”
Besides providing TikTok Shop links to additional videos on the site, TikTok is also investigating alternative approaches to enhance its e-commerce enterprise. According to a recent story by The Information, TikTok intends to establish studios in Los Angeles where content creators may host livestreams and sell merchandise. Currently, creators use their home assets to shoot promotional films, but soon, some can film and broadcast from studios run by TikTok.
In summary, TikTok’s introduction of a feature to include TikTok Shop links in the broader range of videos demonstrates a strategic move to deepen the integration of e-commerce into its user interface. Through the testing of this feature, TikTok seeks to improve the shopping experience within its app, facilitating a smooth transition for users from content discovery to potential purchases. This initiative aligns with the increasing trend of social commerce, acknowledging the importance of translating user engagement into tangible economic activities. If successful, this feature has the potential to benefit users seeking convenient shopping options and create new avenues for brands and businesses to directly engage with their target audience on TikTok, fostering a more interactive and commercially oriented platform. As the social media landscape transforms, content creation and e-commerce convergence emerge as crucial elements. TikTok’s exploration of this feature underscores its dedication to staying at the forefront of these evolving digital trends.
(Information Source: Techcrunch.com)
