TikTok has officially launched its e-commerce service in the US
TikTok officially launched its e-commerce service in the United States this week. As one of the world’s largest e-commerce markets, North America has always been a battleground for the e-commerce industry. According to a recent article in the New York Times, e-commerce is an important business for TikTok, but it is a difficult venture. Excerpts from the report are as follows:
After nearly a year of testing, TikTok announced on September 12 local time the launch of e-commerce service TikTok Shop for all users in the United States (hereinafter referred to as TikTok e-commerce).
The full rollout of TikTok’s e-commerce means that users in the United States can buy items within the app with just a few clicks, without leaving TikTok. In addition to short videos and live shopping, TikTok added a “Mall” portal to its home page in August, which is expected to reach 150 million U.S. users by early October.
TikTok said that in order to make the e-commerce business popular, it is actively promoting videos with shopping tags to users’ recommendation pages. TikTok also currently offers its users generous shopping discounts and coupons. TikTok says it already has 200,000 U.S. merchants on TikTok e-commerce, and more than 100,000 U.S. creators can make videos and livestreams with shopping tags.
“We have a very big plan to make a splash in the industry and get people to understand that TikTok is a place to shop,” Nico Le Bourgeois, a top executive for TikTok’s U.S. e-commerce operations, said in an interview last week. “We’ll be making our presence known on Black Friday and Cyber Monday through a combination of traffic, free shipping and deals.” He also revealed that TikTok e-commerce will run ads both online and offline.
Le Bourgeois was previously Amazon’s head of U.S. marketing. To expand its U.S. e-commerce presence, TikTok this year hired Le Bourgeois and Marni Levine, another retail executive who had worked at Meta.
Le Bourgeois and Levin said that short video content with shopping tags from brands and creators is the main source of sales for TikTok’s e-commerce. In addition, the live shopping model is also one of the business focuses, and the related US business is still growing.
Two e-commerce executives said TikTok is using technology and human reviews to enforce its policies, which require “rigorous verification” of new sellers. More than 90 percent of TikTok’s U.S. e-commerce sellers are in the United States, the company said. Le Bourgeois highlighted L ‘Oreal, Benefit, Olay and E.L.F Many other well-known brands have joined or are planning to join TikTok e-commerce.
Alissa Panoch, a 37-year-old indoor cycling instructor, is a TikTok fan with more than 200,000 followers. A few months ago, Panoch was invited to join TikTok, but she ignored it. It wasn’t until July, when she saw live TV-style ads in her feed videos, that she began to wonder if she could make money from them.
Panoch tries to show off items that appeal to her fans and are well-received in short videos, such as headbands and kettles. A few weeks ago, one of her promotional videos was a huge success, garnering more than 2 million views and selling more than 600 glasses. Panoch expected to earn a hefty commission and was invited to join a TikTok e-commerce creator program run by an agency.
“Now, I wake up every morning to a bunch of inquiries,” Panoch said. “TikTok is a completely different place for me than it was a few months ago — a completely different feel.” “She added.
Levin said TikTok is currently “focused on getting the first sellers to add to the platform.”
“Our intention is to keep people on the platform, whether it’s through shopping, watching videos, or dancing,” Mr. Levin added.
“It’s always about engaging people and being part of the TikTok community.”
TikTok e-commerce began testing in Indonesia as early as 2021, and has since been launched in the United Kingdom, Malaysia, Thailand, Vietnam and other markets. The launch of the United States is another important measure for TikTok’s e-commerce.