Is TikTok planning to become the next Amazon? How is the TikTok Shopping project developing?
September 21, 2023November 6th, 2023
Over the past 3 years, the company TikTok has transformed into a full-fledged player in the ecommerce market. The establishment of order processing centers, ambitious expansion plans... It seems the company is aiming for a future that can even compete with giants of ecommerce like Amazon.
As vigilant experts in the field of order fulfillment centers, we closely monitor this new market participant. In this article, we will provide an overview of the current situation and potential development prospects of TikTok in the ecommerce sphere.
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1. What is TikTok Shopping?
Originally, TikTok was created for sharing short creative videos. However, in 2022, the company expanded its original goals and ventured into the world of e-commerce. It introduced an entirely new feature to the app - TikTok Shopping or TikTok Commerce.
This feature allows users to make purchases without leaving the app. With the introduction of this feature, businesses have the ability to create an online store and manage it directly on the platform.
An enticing feature of TikTok Shopping is that it not only connects consumers and brands, but also creates a space where content and commerce intertwine, allowing users to immerse themselves in the world of shopping in the most natural way for them - through content.
2. Which countries is Tik Tok Shopping available to?
So far, Tik Tok Shopping is only available in a number of countries:
However, TikTok has no intention of limiting itself to this list. The company is rapidly adding new markets to its coverage. This indicates that the platform is strategically expanding its TikTok shopping feature and considers it a key element of its development.
3. How does TikTok Shopping work?
Until September 12, 2023, TikTok provided the opportunity to use two tools for business development on the platform: TikTok Shop and TikTok Storefront. However, on September 12, 2023, the company closed access to the TikTok Storefront program. This move was justified by the company's desire to adapt to the rapidly changing requirements of retail and create more efficient and flexible tools for brand and product promotion.
TikTok Storefront provided an alternative way to launch a store on the platform. With its help, companies could create their own storefronts through a partnership platform. Currently, TikTok offers a single solution for entrepreneurs and brands - direct integration of their business with the social network through the TikTok Shop program.
3.1 Key Features of TikTok Shop
With TikTok Shop, you can create and manage an online store and interact with your audience directly in the app through the TikTok Seller Center portal. This makes the app a powerful tool for businesses to actively grow in the ecommerce space with a focus on social media.
After creating a store on the platform, you gain a range of possibilities:
Erstellen interaktiver Beiträge: Mit TikTok Shop können Sie interaktive Beiträge erstellen, die nahtlos in Ihre Videos integriert sind. Das bedeutet, dass Sie Ihre Produkte direkt in Ihren Inhalten präsentieren können, was das Einkaufserlebnis für die Nutzer ansprechend und natürlich macht.
Detailed product catalogs: Thanks to TikTok Shop, companies can create detailed catalogs of their products. This allows users to easily browse and explore a wide range of items, making it easier for them to make an informed purchasing decision.
Payment and order options: TikTok Shop offers convenient payment and ordering options, ensuring a smooth transaction process. Users can easily add items to their cart and complete purchases without leaving the app.
Interaction with the audience: One of the key aspects of TikTok Shop is the ability for businesses to interact directly with their audience through the platform. Responding to questions, providing additional information, and even organizing interactive campaigns becomes more accessible.
Analytics and reporting: TikTok Shop provides businesses with data and analytics, enabling them to assess the effectiveness of their campaigns, optimize sales strategies, and gain a better understanding of their audience.
TikTok Shop helps businesses create a more relaxed, interactive, and engaging interaction with customers, which contributes to sales growth and brand development.
4. Successes of the TikTok Shopping project. Kylie Cosmetics Case
The entry of TikTok into the ecommerce sphere has proven to be quite successful. The ability to make purchases directly through the app has resonated with users, effectively transforming passive viewers into active buyers. Convenient promotion features combined with the platform's extensive user base have allowed many companies to achieve impressive sales figures.
One of the successful examples is the American cosmetics company "Kylie Cosmetics," founded by the renowned model Kylie Jenner. Their case vividly illustrates how TikTok Shopping not only boosts sales but also fosters genuine connections between a company and its audience. Through skillful utilization of this feature, Kylie Cosmetics managed to amass over 3.5 million followers on the platform.
Fundamental tactics included collaborating with influential figures and creating visually appealing content. The company showcased its expertise by visualizing makeup looks and engaging the audience through promo codes and captivating advertising campaigns.
Hashtags created for different products of the brand played an important role. They not only served as a means to simplify product identification, but also inspired users to create their own unique looks with Kylie Cosmetics products. This interactive approach allowed the audience to become part of the brand and increase its visibility.
By encouraging users to buy products directly through the TikTok store, "Kylie Cosmetics" managed to recoup the investment made in brand advertising. As a result, Kylie Cosmetics is consolidating its position and dynamically expanding its audience, thanks to a strong combination of creative strategies and a close connection with its customers.
You can discovermore examples here. They all show that TikTok Shopping is not only a new sales platform, but also a source of potential profits and extensive opportunities for businesses. They underline that innovation in the world of ecommerce can lead to significant benefits and accelerated revenue growth, and TikTok Shopping is a promising player in this game.
5. Logistics solution from Tik Tok
Another step that confirms TikTok's commitment to ecommerce is the pilot program "Fulfilled by TikTok". This program involves the establishment of order fulfillment centers to simplify the order fulfillment process for businesses.
The launch of the order fulfillment center in the UK demonstrates TikTok's commitment to improving customer service. The center provides seamless logistics solutions, including warehousing, packaging and delivery, while preserving the core of the brand.
The initial results of the pilot launch were promising, prompting TikTok to announce its plans to expand the order processing center's operations to the United States. This expansion will enable businesses from different regions to take advantage of TikTok's logistics offering and enhance their delivery services.
Overall, "Fulfilled by TikTok" represents a significant achievement for TikTok in the ecommerce market, combining the convenience of ordering through TikTok Shopping with high-quality logistics. The program allows businesses to focus on growing their sales, while TikTok becomes an even more attractive platform for successful retail operations.
6. TikTok's potential and its possible integration with Fulfillment-Box
Since 2018, the audience of the TikTok platform has grown by almost 19 times. By 2023, it will have over 1 billion active monthly users. These figures confirm the rapid rise in popularity of the social network and provide immense opportunities for companies to promote their products and services.
TikTok's transformation from a pure entertainment platform to a full-fledged ecommerce platform reflects the company's commitment to meeting the needs of businesses and consumers alike. With the launch of TikTok Shopping, the company has given brands the opportunity to actively promote their products and services directly in the content stream.
The growing potential of TikTok promises even more innovation and diversity in the field of communication and ecommerce. Its ability to convert calls into sales opens up new horizons and makes TikTok an indispensable tool in the strategies of many companies.
In our order processing center we are actively exploring the possibility of direct integration with TikTok Shop for efficient order fulfillment. And it's important for us to know, do you plan to open a store on TikTok? Would you like the TikTok Shopping feature to expand to other countries as well?
If you are interested in providing order fulfillment services for a TikTok store in the UK, we are ready to accelerate the realization of this potential. Together, we can ride the wave of social commerce and offer businesses the opportunity to thrive in the dynamic ecommerce landscape.
Get in contact with Fulfillment-Box
Our managers will answer any questions you may have