LAGOS, Nigeria (VOICE OF NAIJA) – TikTok has officially introduced its e-commerce platform after a period of extensive testing, TikTok Shop, to the U.S. market, where it boasts over 150 million users.
With this launch, TikTok is incorporating several features, including a dedicated shop tab on the home screen, live video shopping, shoppable advertisements, and an affiliate program designed for content creators.
The development of TikTok’s e-commerce initiative in the U.S. has been ongoing since last November, with the company gradually expanding its vendor base.
Bytedance, the parent company of TikTok, has been experimenting with various shopping formats in different markets, including the U.K. and several Southeast Asian nations.
In a blog post, TikTok stated, “TikTok Shop empowers brands and creators to connect with highly engaged customers based on their interests, and it combines the power of community, creativity, and commerce to deliver a seamless shopping experience.”
READ ALSO: TikTok Introduces Passkey Login For IOS Devices
Content creators can tag products, simplifying the purchasing process for users watching in-feed videos and live streams. Brands can curate their own product portfolios, which are accessible via their profile pages.
TikTok Shop includes a dedicated tab, introduced in other markets in June, allowing users to search for products, discover items through recommendations, browse various categories, and manage their orders.
To assist sellers, TikTok has established an affiliate program that enables them to collaborate with content creators on a commission basis to sell products.
Beyond hosting brands’ products on the platform, Bytedance provides logistics solutions under “Fulfilled by TikTok” and a secure checkout process.
TikTok has long partnered with Shopify and other e-commerce providers to offer shopping solutions for businesses.
Additionally, it integrates with various e-commerce partners, customer service platforms, merchandise providers, review platforms, and shipping services.
According to TechCrunch, TikTok has already onboarded over 200,000 sellers to its Shop platform, and more than 100,000 creators have signed up for the Affiliate program.
Recent reports indicated that some U.S. users had seen the shop button on their TikTok app, but it primarily showcased inexpensive or counterfeit products from China. TikTok clarified that over 90% of sellers on TikTok Shop are based in the U.S.
In the U.K., Bytedance is already selling products from its subsidiary on TikTok, challenging platforms like Shein and Amazon.
In the U.S., TikTok aims to leverage popular trends like #TikTokMadeMeBuyIt, which has garnered billions of views.
READ ALSO: TikTok Launches Text-only Posts To Rival Twitter
Despite competition from giants like Amazon and Shein, TikTok is making its mark in the e-commerce sector.
While there were reports of TikTok planning to ban third-party e-commerce links, Bytedance denied these claims.
However, the launch of TikTok Shop may lead to increased data collection, including financial details, shopping behaviours, and addresses, raising potential concerns from lawmakers.
TikTok has stressed that all U.S. user data is stored and managed within the country by USDS, a separate unit dedicated to U.S. data management.
Nonetheless, this expanded data collection may invite further scrutiny from policymakers advocating for app bans.
