By Jonathan Baker and Angela Mertz, VP of Integrated Media at EGC The final ‘yay’ or ‘nay’ decision over TikTok’s fate to operate in the United States continues to drag on. Many may even consider TikTok old news—except where its e-commerce capabilities are concerned. Case in point: TikTok Shop. Upward Trend of In-Stream Shopping Findings reported in Social Media Today state that TikTok’s in-stream shopping services have experienced an increase of 120 percent for the year. (And keep in mind that as this is the midpoint of the year, that percentage will likely increase.) The service that’s drawing most attention—and, significantly, in the U.S.—is TikTok Shop. How much attention are American consumers paying to TikTok Shop? Many Sellers—and Even More Products—on TikTok Shop Stats mentioned in a statement from TikTok note that its community of sellers has expanded into over 750 categories. There are 171,000 local and small businesses that operate TikTok Shops. To top these figures off, shoppers currently have over 70 million products to choose from. Much of the reason behind these attention-grabbing figures is the observation of how TikTok has become what may be called ‘a platform of discovery’ for many online users (read: customers). Success of Discovery This sense of discovery comes from shoppable videos and livestreams, aimed to whet the interest of potential customers on TikTok Shop. Visitors have access to product demonstrations via videos and livestream, hosted by sellers and creators. If users have questions, the sellers and creators provide prompt answers. The results? Approximately 70 percent of visitors to TikTok Shop learned about a new brand, and 83 percent discovered new products. Finally, 76 percent of these visitors have purchased products from a livestream presentation. Impressive? Yes—but TikTok is not satisfied. It’s All Perspective The figures listed above would appear successful beyond anyone’s dreams. The majority of U.S.-based TikTok users, however, visit the app for entertainment. They clearly separate between the practices of engaging with a popular social platform and purchasing from standard e-commerce sites. The powers behind TikTok Shop are hoping to win more potential customers—either directly or through word-of-mouth—via sales events in July. Will these events persuade more users to visit TikTok Shop? Entertainment Meets E-Commerce As noted, most users check in to TikTok for entertainment. In time, this platform may reach its goal to attract more users browse and purchase at TikTok Shop. Angela Mertz, VP of Integrated Media at EGC, points out the appeal of how TikTok Shop has in fact made e-commerce entertaining: TikTok continues to push the boundaries of social commerce. With in-app shopping, affiliate programs, and commissionable creator partnerships, TikTok has become a full-funnel platform. Brands launching physical products—especially in lifestyle or pet categories—should consider this a key test-and-learn channel. The EGC Group has extensive expertise in helping brands stand out on social media. Looking for extra engagement that leads to more sales and customers? Socialize with us to learn more.
