In the US, more businesses are now trying TikTok's Shop
By adding more brands to its Shop project, which enables businesses to sell their products directly on the app with a complete checkout experience, TikTok is continuing its campaign to turn the app into a shopping destination. We now know a few more businesses that are a part of this first testing phase that TikTok started in the U.S. this past November.
According to a story from Ad Age, businesses including cosmetics brand KimChi Chic and retail firms like PacSun, Revolve, and Willow Boutique have joined this shopping experiment. Users may peruse the companies' catalogs and finish the payment process without leaving the TikTok app by tapping the shopping bag symbol on the brand's profile. As it has been since November, the business told TechCrunch that TikTok Shop in the U.S. is "still in the testing phase," but it gave no details on when it will be made available to the general public.
While TikTok users have had access to goods purchases via adverts for some time, they have previously been sent to an in-app browser to complete their transaction. With TikTok Shop, the purchasing process happens entirely inside the app, giving the user a more smooth and natural experience. In a similar manner, Instagram Store operates.
TikTok Store has been accessible in a few countries globally, such as Singapore, Indonesia, and Vietnam, for over a year. According to earlier reports, TikTok abandoned plans to introduce Shop to the United States and other regions of Europe after the project apparently failed to take off in the U.K. With these continuing studies, TikTok seems to think there is a demand for shops in the U.S.
The business has been putting money into other retail options in addition to TikTok Shop. The app and Instacart collaborated to allow food bloggers to create shoppable lists that were connected to recipe videos in March. Later in June, it began testing a specific shopping feed that acted as a central location for items being offered in various markets on TikTok Shop. Also, it experimented with live shopping in a variety of regions, including the U.K. and numerous Southeast Asian nations.
Competitor apps are reducing their e-commerce efforts while TikTok continues to concentrate on retail services. Instagram stated this month that it is discontinuing its live shopping endeavors after removing the shop button in January. Facebook's live shopping function was likewise discontinued in August 2022. In the meanwhile, Amazon tested live shopping in a number of markets. Moreover, YouTube added additional live shopping options in May, such as the ability for two creators to broadcast simultaneously.
Yet, there is no proof that these initiatives are having the same impact on Western countries' online sales as they have in Asia. According to reports, social commerce accounts for just 5% of e-commerce transactions in the United States.
It may be due to variations in app use between markets due to cultural factors. Nevertheless, it may be challenging to trace all of the shopping conversions that result from being persuaded to purchase a product in a social context. In reality, some of those online purchases made using the direct links published by a brand or artist may not be completed right away. But, if the customer has seen more digital commercials, searches for the goods on Google or Amazon, or visits the retailer's website, the video content or brand's advertisement may help drive a sale at a later time.
However since the video app might lead to impulsive purchases, the expression "TikTok made me buy it" has gained popularity. In actuality, the phrase has received 7.4 billion views on TikTok, while the hashtag has received 42.6 billion. Not only may in-app shopping capabilities increase sales, but they could also make them more trackable for brands and companies.
