TikTok has rapidly grown to become one of the most popular social media platforms, with over 1 billion monthly active users as of September 2021 according to https://appinventiv.com/blog/top-tiktok-statistics/. The app allows users to create and share short videos, often set to music, and its fun, entertaining style has appealed hugely to younger demographics. With its meteoric rise, TikTok has also become a hotspot for social commerce and shopping capabilities.
Many social platforms are now integrating shopping features, allowing users to easily purchase products associated with content creators and videos. With a massive engaged userbase that is highly influenced by trends on the platform, TikTok presents major opportunities for brands to reach consumers in new, organic ways through built-in shopping and commerce capabilities.
TikTok Shop Tab
The TikTok Shop tab allows users to browse and purchase products directly within the TikTok app. It launched first in the UK in 2021 and has since expanded to other regions including Southeast Asia, Japan, and most recently the US in late 2022 (Bogliari, 2022).
When viewing the Shop tab, you’ll see curated products and brands organized by categories like beauty, fashion, and home goods. You can scroll through highlighted products or tap into specific brand shops to view their full catalog of items available for purchase. Everything from major brands like Sephora to small creative shops and influencer merchandise can be found.
The browsing experience is seamless and optimized for mobile. Product photos and details are displayed attractively, and you can easily add items to a cart for checkout. It provides a more social, video-first way to shop versus traditional ecommerce sites.
In-Feed Shopping
In-feed shopping allows brands to showcase their products directly in TikTok feeds. This is done through video ads and product links that users can tap to view and purchase featured items.
Some of the in-feed ad formats include:
- Shoppable video ads – Brands can create video ads up to 60 seconds long that showcase products. Viewers can tap on products featured in the videos to visit the advertiser’s site.
- Product links – Text, image or video ads can include a “Shop Now” button that directs users to the advertiser’s online store.
- Collection ads – Brands can showcase multiple products in one ad unit with this carousel-style format. Users swipe through products and tap to purchase.
In-feed shopping ads allow advertisers to capitalize on TikTok’s engaged user base and immersive ad experience. The seamless link from watching a video to shopping provides a frictionless path to purchase.
Live Shopping
One of the key shopping features on TikTok is Live Shopping, which allows brands to broadcast live video streams to showcase and sell products in real-time. During a TikTok livestream, viewers can tap on product links and make purchases without leaving the app, creating an engaging and interactive shopping experience. According to TikTok, Live Shopping provides brands an opportunity to bring in more traffic, showcase products in an authentic way, and drive sales.
Influencers and creators can host Live Shopping streams through TikTok’s Creator Marketplace program. Brands can sponsor livestreams hosted by creators relevant to their target audience. Having an influencer showcase products provides social proof and helps drive sales. Viewers can ask questions and interact with the host in real-time through features like comment streams. Some key capabilities of TikTok Live Shopping include the ability to display product carousels, add links for easy purchasing, provide coupons and special offers, and more. Overall, Live Shopping allows for an interactive and engaging shopping experience that brings products to life. TikTok notes that Live Shopping boosts conversion rates and provides brands a more personalized way to reach shoppers.
Shopping in Videos
One of the key features of TikTok shopping is the ability for creators to add shoppable links directly in their videos. Using TikTok’s product tagging tool, creators can tag products that appear in their videos. When viewers tap on the tagged product, a pop-up will appear with a photo, price, and shop now button that directs them to the retailer’s website to complete the purchase (Source).
Creators can also add shoppable links in their video captions. These clickable links take viewers directly to the retailer’s product page to shop the item. This seamless integration allows viewers to quickly purchase featured items without leaving the TikTok app (Source).
Overall, TikTok’s built-in shopping capabilities allow for a more immersive and seamless shopping experience for viewers. It taps into influencer marketing and makes impulse shopping frictionless. For brands and creators, it provides a new way to monetize content and drive conversions directly within the platform.
TikTok Creator Marketplace
The TikTok Creator Marketplace is an online platform that connects brands with popular creators on TikTok to facilitate sponsorships and partnerships. It allows brands to discover creators, pitch collaboration ideas, manage campaigns, and track performance [1].
Through the marketplace, brands can search for creators based on demographics, interests, and audience engagement. Once they find relevant creators, brands can directly contact them about sponsored content opportunities. If a deal is reached, the collaboration and campaign execution is handled through the marketplace platform.
The TikTok Creator Marketplace provides useful tools for brands to identify influencers, propose content ideas, get content pre-approved, and track analytics. For creators, it offers a streamlined way to connect with interested brands and monetize their audience. Overall, the marketplace enables authentic partnerships that allow brands to tap into creators’ expertise and creativity.
Trend-Driven Commerce
One of the unique aspects of shopping on TikTok is the platform’s ability to drive product trends and impact demand. With videos going viral seemingly overnight, products featured in popular TikToks can see exponential growth in sales.
Some examples of products that went viral on TikTok include:
- The Moira Love Steady Liquid Blush, which saw a major spike in sales after being featured in makeup tutorials.
- Layered gold chains, which became a huge jewelry trend for their stylish and versatile look.
- The Light-up LED disco ball, featured in dance videos, which quickly went out of stock as demand surged.
TikTok has proven adept at accelerating product trends, allowing niche items to take off at record speed. Brands looking to drive sales and engagement can benefit enormously from having their products go viral on the platform.
Built-In Ecommerce Tools
TikTok provides various built-in tools to help merchants and brands set up ecommerce capabilities directly within the app.
Key tools include:
- TikTok Shop – Allows brands to set up a mini-storefront and product listings.
- Shopping Ads – TikTok’s advertising solution for promoting products with video ads that drive to a shoppable product page.
- TikTok Creator Marketplace – Connects creators and merchants so brands can partner with influencers to promote products.
With TikTok’s tools, brands can create engaging shopping experiences and tap into viral commerce opportunities. Solutions like Shopping Ads make it simple to promote products and drive clicks directly to a brand’s online store or product listings.
The platform is optimized for product discovery and impulse shopping, giving businesses an exciting new ecommerce avenue beyond traditional websites and online stores.
Advantages for Brands
TikTok provides significant advantages for brands looking to expand their reach and boost sales. One key benefit is the ability to access wider audiences and new demographics. TikTok’s user base skews young, with over 60% of users aged 24 and under. This presents an opportunity for brands to connect with Gen Z consumers. TikTok’s algorithm also exposes content to new viewers outside a brand’s existing followers, helping expand reach.
Another major advantage is the power of influencer marketing on TikTok. The platform’s popular creators have built massive, engaged followings. Brand partnerships with influencers allow businesses to leverage these existing audiences. Creators can authentically showcase products in entertaining videos, driving awareness, interest, and sales. According to one report, the top 5% of TikTok influencers have a greater reach than mainstream celebrities. The influencer marketing opportunities on the platform are immense for merchants looking to connect with fans.
The Future of TikTok Shopping
TikTok shopping is still in its early stages, but it is predicted to evolve rapidly in the coming years. According to Insider Intelligence, TikTok will be a key driver of social commerce growth, with sales expected to surpass $100 billion by 2025. TikTok is already moving the needle on social commerce, especially among Gen Z users.
As TikTok shopping matures, we can expect to see more sophisticated tools for brands and creators. TikTok will likely develop native checkout capabilities, eliminating the need to direct users outside the app. More brands across diverse categories are expected to embrace TikTok commerce. Live shopping in particular is predicted to grow on TikTok, as it allows for real-time engagement between creators and viewers.
However, TikTok faces challenges in establishing trust and security around transactions. As a newer platform, TikTok will need to ensure smooth ecommerce experiences and protections for users’ payment information. Stricter policies around influencer marketing disclosures may also be required. But if TikTok can surmount these hurdles, it is poised to become a major force in social commerce over the next several years.
