Last year, the TikTok Shop platform launched on the global market. This is an e-commerce platform that lets TikTok users shop for goods they need or find while surfing the video-sharing app. TikTok is now planning to grow its e-commerce platform this year, with a target of $17.5 billion.
At this rate of its planned growth, TikTok might stand in the way of some well-established e-commerce platforms. TikTok Shop has a valid advantage against the already existing e-commerce platforms, and this has to do with the fact that it’s linked to a social media platform. Its competition, however, will have to depend on users finding what they need before coming to purchase vendors on the platform.
TikTok Shop on its part offers goods that users find while scrolling through videos for purchase. So a user can find a gadget in a TikTok video that they might want, and the built-in e-commerce platform will offer this user that gadget for sale. By tapping a link on the video’s page, the user will be able to access a purchase page where they can get the gadget in the video.
Businesses can also use TikTok’s e-commerce platform to promote their goods in videos they post on the video-sharing platform. This is a great advertising tool for businesses looking forward to getting their goods into more people’s homes. Other e-commerce platforms fall back in this area, as TikTok Shop is built into the social media platform.
With millions of daily visitors, TikTok will be able to grow its e-commerce business this year. In the coming months, we’ll get to see some moves from TikTok that’ll help grow its e-commerce business globally. Also, we’ll watch out for moves from other e-commerce platforms to help prevent the loss of customers to TikTok Shop.