Social commerce market size to $1.3 trillion in 2023, up 30.8% from last year. Thus many platforms are implementing new advertising strategies to grow, such as TikTok…
Tiktok Shop, an affiliate marketplace
Last November, TikTok quietly entered the e-commerce market in the United States. While Pinterest and Amazon recently signed a multi-year strategic advertising partnership, the social platform is pursuing a completely opposite strategy. He competed with Amazon and other retail giants by unveiling
Its latest feature? tiktok shop,
This includes an affiliate marketplace, which connects brands with influencers who can help them sell to their target customers.
Initially available in the UK and seven Southeast Asian countries including Indonesia, Vietnam and Singapore for about a year, TikTok Shop is gradually expanding into the US market. It is now available in beta in the United States.
Several clothing brands are part of this initial testing phase, such as PacSun, Revolve and Willow Boutique, as well as beauty brand KimChi Chic.
TikTok Shop allows merchants to sell products directly to the public on TikTok through video content, live streams, and a product showcase profile tab. So brands can work with influencers to drive TikTok store sales through a specialized affiliate marketplace.
Simply put, every time a creator facilitates a sale through the TikTok shop, they earn a commission. A new strategy to monetize TikTok content while promoting your favorite products.
To use it and buy products from these brands, simply press the shopping cart icon on the brand profile to view their catalogue. Then you have to complete the payment process without leaving the TikTok application.
More native and seamless shopping experience on TikTok
For some time now, users have been buying products through advertisements on Tiktok. But they were still redirected to the in-app browser to complete their purchase.
With the TikTok Shop, payment processing takes place directly in the application, just like the Instagram Shop.
Those who want to venture out as beta sellers have surely already received this e-mail:
They will have exclusive access to the TikTok shop and can provide valuable feedback to improve the product. Plus, for a limited time, they can take advantage of a special promotion offering 0% referral fees for the next 90 days.
How do I register for the beta version of TikTok Shop?
To participate in the TikTok shop, sellers simply click on the link in your invitation email. But if you haven’t received the invite, you can access the beta registration here.
As it has been since November, the TikTok Shop is still in the testing phase in the United States. As of now, the company has not revealed any information regarding the timing of the wider launch.
Indeed, in-app purchases are very popular in China and have become the main source of revenue for Douyin, the local version of TikTok. Similar enthusiasm in Southeast Asia.
According to Tiktok:
″TikTok Shop is reported to generate $4.4 billion in gross merchandise value across Southeast Asia in 2022, driven by a network of presenters and agencies that “manage” livestream storefronts.
For some reason, Western audiences haven’t shown the same interest in in-app purchases on social platforms. Western consumers seem to have largely stuck to their habits and still, for the most part, prefer to browse sites and view the items they are buying.
Why are Americans and Europeans still reluctant?
Scams? Mistrusting Platforms Than Our Data? security threats? All of these, mainly related to data protection and GDPR, remain factors that have slowed down the widespread adoption of live shopping.
However, according to Meltwater, the platform has more than a billion users worldwide, including 130 million in the US and 15 million monthly active users in France in the first quarter of 2022, compared to 4.4 million per month in June 2019.
70% of its advertising audience is between the ages of 18 and 34, representing approximately 750 million TikTok users. According to TikTok, access to sales data will allow TikTok to send qualified traffic to your content.
Then to continue…