When talking about social media, we cannot deny that TikTok is one of the fastest-growing apps. Its power cannot be underestimated. According to the BBC, in 2020, TikTok was the most downloaded app globally, counting more than 240 million users in South-East Asia. It has changed the way people consume media online and influenced the way businesses and marketers approach digital marketing. Now, TikTok is taking a step further with TikTok Shop, a revolutionary platform that merges the engaging world of short-form video content with the convenience of online shopping. Let’s explore how TikTok Shop is changing the e-commerce landscape.
Firstly, TikTok Shop leverages the power of short-form video content, which has proven to be highly engaging. Users are already accustomed to spending hours scrolling through TikTok, and now, they can also shop without leaving the app. This integration reduces friction in the shopping process, making it easier and faster for consumers to make purchases.
Secondly, TikTok Shop offers a personalized shopping experience. The app’s sophisticated algorithm suggests products based on users’ interests and browsing history. This means that users are more likely to see products they are genuinely interested in, leading to higher conversion rates for businesses.
With one billion active users worldwide, TikTok provides both SMBs and global brands like Adidas, Volkswagen, and PUMA the opportunity to connect with their target audiences and drive business across the globe. The platform prioritizes videos from creators that users have never seen before, giving every video a chance for virality, which significantly benefits marketing efforts.
The pandemic period brought influencers and brands into the spotlight on TikTok, creating new ways for small and medium-sized businesses (SMBs) to adapt and innovate their marketing strategies. Particularly in Southeast Asia, including Thailand, Malaysia, and the Philippines, TikTok ranks among the top 10 downloaded apps. Most businesses in SEA are small to medium-sized enterprises (SMEs), and TikTok serves as an effective marketing channel for them to present their brand and increase engagement.
One of the standout features of TikTok Shop is its interactive nature. Users can watch product demonstrations, read reviews, and even participate in live shopping events. These features create a dynamic shopping environment where consumers can interact with brands and products in real-time.
Additionally, TikTok Shop integrates seamlessly with other e-commerce platforms, making it easy for businesses to manage their inventory and orders. This integration ensures a smooth and efficient shopping experience for both consumers and sellers.
TikTok Shop is not entirely new. Its precursor, Douyin (the original Chinese TikTok), jumped into e-commerce in 2018. The goal was to complete the loop from awareness to conversion, as social media platforms in China typically provide online shopping functions. TikTok released a feature called the “shopping cart” for brands to drive sales, partnering with Taobao and Tmall by Alibaba Group.
In other countries, this sales-driving feature is known as “TikTok Shop.” It is a suite of solutions, features, and advertising tools that empowers brands and merchants to increase engagement with their consumers. On March 3, 2021, TikTok announced the expanded roll-out of their global Shopify partnership to Southeast Asia, including Singapore, Malaysia, Thailand, Indonesia, and Vietnam. The pilot testing of TikTok Shopping is among a select group of Shopify merchants in the US, UK, and Canada.
It works in two different ways:
Creators and merchants can run an e-commerce business directly on the platform. Consumers can discover products from creators’ accounts through video content or Livestream. Every step from product detail pages to point-of-purchase is powered and performed on TikTok. To get started with TikTok Shopping Direct Integration, set up an account on the TikTok Seller Center.
This solution allows creators and merchants to create product catalogs through their own TikTok For Business account. Consumers can purchase products within the TikTok app, but checkout and post-payment processes such as returns or refunds happen on the partner app or merchant site.
As TikTok continues to grow in popularity, the potential for TikTok Shop is immense. The platform is constantly evolving, introducing new features and tools to enhance the shopping experience. With its innovative approach and vast user base, TikTok Shop is poised to become a major player in the e-commerce industry.
TikTok represents a new and interactive way to shop online. By combining engaging video content with seamless shopping features, it offers a unique experience that benefits both consumers and businesses. The influence of TikTok on digital content and its fast growth is reason enough for creators, marketers, and businesses of all sizes to jump into TikTok and seize the opportunity to market creatively and drive sales. Embrace the future of e-commerce with TikTok and discover a new world of interactive shopping. So, why wait? Start exploring TikTok Shop today and experience the future of shopping firsthand.
Looking to put your business on TikTok Shop?
A post written by Vongsiri Thitivesa, Digital Marketing Manager Intern at MOST 2414 and student at Srinakharinwirot University.
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