TikTok has gradually been expanding its foothold in the United States with the introduction of new features. Now, as part of these efforts, the company has announced its new e-commerce platform in the United States called TikTok Shop, which not only enables users to discover but also directly purchase products featured in live videos, tags within content on their personalized “For You” page, on brand profiles, or through a dedicated “Shop” tab.
Although TikTok first began testing the new feature in the US back in November with a select group of users, the new shopping experience represents significant development as it empowers creators to tag products in their videos and establish partnerships with brands that offer commission-based marketing opportunities, ultimately increasing revenue.
For creators interested in selling their own products, the company is introducing a new “Fulfilled by TikTok” program, which takes care of storage, packaging, and shipping. Additionally, to capitalize on the hype, the platform is actively promoting hashtags like #TikTokMadeMeBuyIt.
“With TikTok Shop, we’re giving people a place to experience the joy of discovering and purchasing new products without leaving the app,” says TikTok.
Challenges surrounding the shopping experience
Although TikTok says their new shopping experience has already garnered the support of over 200,000 sellers and over 100,000 creators, there are a few issues that could affect the experience. Firstly, many users have reported that the shop button primarily displays inexpensive or counterfeit products from China. Secondly, in light of concerns about TikTok’s alleged data privacy practices, there are worries about the company collecting more data from users, including financial information, shopping habits, and addresses.
“US users’ payment information is managed by USDS, and we work with third-party payment platforms to facilitate transactions on TikTok Shop,” says TikTok.
Furthermore, TikTok is not alone in the e-commerce market and will face stiff competition from giants like Amazon and Shein. Nevertheless, the platform’s unique proposition of allowing users to directly purchase products they come across in their feed could pose a significant threat to traditional retailers.
