TikTok is continuing its efforts to turn its app into a shopping destination by introducing more brands to its Stores initiative, allowing companies to sell their merchandise directly on the app. with a full payment experience. TikTok starts test store in the US in November, and we now know of a few more brands participating in this initial testing phase.
According to a report from Advertising age, companies including clothing brands such as Pacsun, Revolve and Willow Boutique as well as beauty brand KimChi Chic are now part of this shopping experiment. Users looking to purchase products from these brands can tap the shopping bag icon on the brand’s profile to view their catalog and complete the checkout process without leaving TikTok’s app.
Image credits: Advertising age
The company confirmed to TechCrunch that the TikTok Shop in the US is “still in beta,” as of November, but didn’t provide any information on a broader launch date.
Although users have been able to purchase products through ads on TikTok for quite some time, before that they had to visit an in-app browser to make a purchase. With TikTok Shop, the checkout process happens directly in the app, making the experience more natural and seamless. This is also how Instagram Shop works.
Outside of the US, TikTok Shop has been available in select markets including Indonesia, Vietnam, and Singapore for nearly a year. Before The report indicates that TikTok has abandoned plans to bring Shop to the US and other parts of Europe after the venture reportedly struggled to gain traction in the UK. However, TikTok seems to believe there is a market for Shop in the US with these ongoing trials.
In addition to TikTok Shop, the company is also investing in other shopping features. Last March, the app cooperation with Instacart to allow food creators to create shoppable listings linked to recipe videos. At the end of June, it started testing dedicated shopping feed, which serves as a hub for products sold in the TikTok Shop, as well as in select markets. In addition, it tested direct shopping at different markets like UK and some countries in Southeast Asia.
As TikTok continues to develop shopping features, competitor apps are scaling back some of their e-commerce efforts. Instagram store tab removed in January and announced this month that it is Eliminate direct shopping efforts. Facebook is also closed live shopping feature in August 2022. Meanwhile, Amazon has been testing in-person shopping at different market. In addition, YouTube has introduced new in-person shopping features such as allowing two creators streaming together last month.
However, there is little evidence that these experiments are working to drive significant amounts of online commerce in Western markets as well as in Asia. Reports suggest that in the United States, social commerce accounts for only 5% of e-commerce sales.
That could be due to cultural differences in how the app is used across markets. But it is also difficult to track all the shopping conversions that come from being influenced to buy a product in the social space. In fact, some of those e-commerce transactions may not happen immediately using direct links shared by a brand or creator. However, video content or branded ads can drive sales at a later date after consumers see more digital ads or search for products on their own through search. on Google or Amazon, or through a visit to a retailer’s website.
Phrase “TikTok made me buy it,” has grown in popularity, however, thanks to the video app’s ability to drive sales. In fact, the term currently has 7.4 billion views on TikTok. In-app shopping features can not only drive more sales, but can also help brands and businesses track them.
