Last updated - February 1, 2023
TikTok is becoming increasingly popular, has over 1 billion monthly active users, and is available in over 150 countries. Although it is a social media platform, it is shapeshifting into an eCommerce platform.
Online shopping became a global phenomenon after 2010 as shoppers felt much safer with online transactions. Amazon and eBay were the two most popular eCommerce platforms to start with. Then came the social media revolution with Facebook, Twitter, LinkedIn, Instagram…
These social media platforms recognized the potential of eCommerce and started giving their users features through which they could build shops and sell products through their social media accounts.
TikTok also started as a social media platform but now has the potential to become an E-commerce giant. In this blog, we will closely examine why it is so.
Inception
In 2016, ByteDance, a Chinese firm, launched a mobile app called TikTok when already-established players like Facebook and Instagram existed. ByteDance also owned an app called musical.ly, which was shut, and its features were incorporated into TikTok.
TikTok has been growing exponentially since then, and even during the Covid pandemic, the growth remained steady. It became popular, especially with the younger generation.
Entry into eCommerce
TikTok has become one of the smartest ways to promote any type of eCommerce business. As the platform is mainly entertainment-based, most users remain in a very good state of mind.
TikTok added a shopping option to its platform to collaborate with businesses worldwide. Its users can purchase products without opening a web browser or visiting the eCommerce website separately. As a result, selling or buying products becomes hassle-free for both parties.
Triggering the Buying Emotions
E-commerce firms are increasingly becoming dependent on social platforms due to the emotional connections they have with buyers.
They spend a lot of money on Social commerce due to the high Return on Investment they get from it. TikTok found in its survey conducted in 2020 that the environment of TikTok motivated its users to shop even though they were not prepared for it earlier.
Walmart, which had a presence on TikTok, witnessed seven times more views of its videos during the survey. Walmart’s followers grew by 25% at the end of the survey.
The ultimate aim of any company is to get more sales rather than more views of its videos. This is when TikTok steals the limelight, as it allows viewers to buy a product while getting entertained by a company.
One-Stop Shopping Destination
TikTok has entered into partnerships with companies like Square & Shopify. Consumers can shop directly from the TikTok app as a result of these partnerships. This is done via a link on the merchant’s TikTok account.
Businesses on TikTok can tag their products on their posts. TikTok’s users, while watching the company’s promotional videos, can shop directly from their online store or click on a product tagged in the video. Some companies have reported ten times more sales from TikTok than Instagram and Facebook.
Most of TikTok’s users are below 35 years of age, and this age group is known to shop the most online.
Facebook – TikTok’s Biggest Competitor
TikTok still has some catching up to do with Facebook as far as the number of active users is concerned. However, TikTok is growing rapidly with investments from some great tech leads.
Users are enjoying their time on TikTok, whereas, on Facebook, users report being frustrated sometimes.
Facebook, on the other hand, has more options in terms of ads and business development. Although, a happy customer with a joyful purchase is what every business aspires for.
Videos are the most popular form of consuming content and even the most effective one. As a result, TikTok will have the upper hand over Facebook, as the former is entirely video based.
Facebook may transform into a platform similar to TikTok to counter this advantage.
Some Statistics About TikTok
- TikTok is now available in 154 countries and in 75 different languages
- TikTok officially has over 1 billion monthly active users
- About 67% of teens use TikTok, which is second only to YouTube
- TikTok recently increased its maximum allowed length for videos to 10 minutes
- TikTok recently created a USD 1 billion fund for its content creators
Popular Brands on TikTok
Levi’s
Levi’s is a well-known fashion brand inspiring stylish looks for generations. It was amongst the first few companies to use TikTok’s “Shop Now” feature. This brings the customers directly to the online store of the company.
Levi’s used this feature very tactfully by partnering with various TikTok influencers across the world and inserting the “Shop Now” button in their videos. This helped the brand move away from the typical Call To Action (CTAs) and use influencer marketing. Levi’s had noticed that the watch time of these videos was two times TikTok’s average.
L’Oreal
The beauty and haircare firm has fully utilized TikTok’s marketing potential by creating a filter, trending hashtag, and a TikTok Shopping profile.
L’Oreal started a campaign called #GoBoldColorista in which they created a filter to let people see how they would look in a particular hair color. The hashtag was used by around 3 billion people across the globe.
L’Oreal is a big brand that has dominated the haircare industry for several years, and they have proved that TikTok can be used by even big brands for sales & marketing.
Walmart
TikTok has a unique live stream feature that enables customers to add products to the cart by tapping on them. Walmart noticed a considerable amount of success by using the live stream feature during “Holiday Shop-Along Spectacular.” This was done for almost two years.
The hassle-free experience of this type of shopping opens up several opportunities for new players in the eCommerce segment.
Justhype
It is a UK-based firm selling modern streetwear and accessories to young customers. It was launched in 2011, and the brand became successful very quickly. It became popular through a combination of social media marketing, like digital launches and limited editions of certain products.
TikTok Shopping has provided Justhype with a platform with a large and engaged customer base. In its initial launch on TikTok, the company offered its 43,000 followers 50% off for seven days. This helped the company get 213.7K likes and almost 1000 comments on one post.
This shows that TikTok can create a large customer base and sales like any other eCommerce platform.
Kylie Cosmetics
The firm was one of the first to adopt the TikTok Shopping feature during the trial period. Kylie Cosmetics is owned by reality star Kylie Jenner and provides high-quality cosmetic products.
The video content that TikTok offers to its users has allowed Kylie Cosmetics to showcase its products in much more detail than typical ad campaigns.
Many other cosmetic brands, big or small, have tried to replicate what Kylie Cosmetics has done on TikTok.
On a Closing Note
TikTok is definitely shapeshifting from a social media platform to an E-commerce giant. However, it will face tough competition from the likes of Facebook and Instagram, as they will modify their platform to focus more on eCommerce.
