In 2023, TikTok is a must-have for social networks, both for consumers and brands. Over the years, the Chinese application belonging to the ByteDance group, with more than 1.7 billion users , has evolved well beyond a simple video sharing platform. It now plays a key role in the discovery of new products , as well as in consumers’ purchasing decisions , as evidenced by the launch of TikTok Shop in 2021. Thanks to this feature, brands are able to integrate and market their products directly within the application, in a more natural and intuitive way for consumers. TikTok’s goal is now to increase its footprint in the field of social shopping, particularly in Asia, a region where a significant share of the market is located. In this article, we explain how Shopping works on TikTok.
What is TikTok Shop?
TikTok Shop is an e-commerce solution available for certain countries (mainly in Asia) that allows brands and creators wishing to sell their products directly on the platform. With TikTok Shop, it is possible to directly integrate a product catalog on your profile , a store similar to what is already found on Instagram and Facebook. This feature offers a more immersive and simplified experience to discover products and make purchases within the application itself. Users will be able to explore the different product sheets, manage shipping, payment, all without having to leave the application or open an external browser, which will significantly increase conversion rates.
TikTok Shop: A success on the Asian market
Simplus Thai brand enjoying great success thanks to TikTok Shop
TikTok initially introduced TikTok Shop to the Asian market, as Asia is a region where live and social shopping are very popular, especially in China. According to BDM , the live shopping market in China was valued at $171 billion in 2020 and is expected to exceed $ 423 billion by the end of 2022 , representing a 147% increase in the space of two years. TikTok is also looking to invest “billions” in the coming years in Southeast Asia, TikTok CEO Shou Zi Chew said at a conference in Jakarta in June 2023, where sales in the region have exploded since the launch of TikTok Shop. However, this phenomenon has not yet managed to seduce all markets. Furthermore, it is worth noting that Meta recently decided to remove the live shopping feature from its Instagram and Facebook platforms. This decision was motivated by the fact that the expected results were not up to par (the Instagram and Facebook store still remains operational).
Social Shopping: Doubts for the US and European markets
Despite its launch over a year ago in the United Kingdom and more recently in the United States, TikTok Shop is having difficulty convincing consumers in regions where this new mode of consumption is not yet familiar enough. In Europe, this new era of social shopping has not yet found full acceptance, which is greatly delaying the arrival of the TikTok Shop feature in France and among our European friends. Added to this are the many problems encountered by the platform in the United States, whose senators want to see it banned . Last March, Shou Zi Chew was questioned in the American Congress for suspicions of spying by the TikTok application, as well as on the issues surrounding American user data .
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Which countries are eligible for TikTok Shop?
Currently, 6 countries in Asia, the United Kingdom, and the United States are eligible for TikTok Shop. The Asian countries are Indonesia, Malaysia, Thailand, Vietnam, the Philippines, and Singapore. We hope that more countries, including France, will be eligible soon.
TikTok Shop: The different features for selling
TikTok Shop offers three great native features to help you boost your sales.
Live Shopping
Live Shopping allows you to highlight one or more product sheets during a live stream . The products are displayed and pinned (cart icon) during the live broadcast, accompanied by all their information, prices, images and descriptions. Live viewers can therefore purchase the products directly. Note : Despite the absence of TikTok Shop in France, it is still possible to use the live shopping feature thanks to advertising via TikTok Ads. To learn more about it, read our article on TikTok Shopping Ads .
Video Shopping
Shopping videos are classic video content that can be found in users ‘ “For You” tab. What sets them apart from other videos is that they include a link to a product with a shopping cart icon, redirecting to the product catalog. These videos can be particularly effective, given that many products are discovered on TikTok thanks to organic videos and the platform’s powerful algorithm. The hashtag #TikTokMadeMeBuyIt proves this with nearly 67 billion cumulative views. However, users often do not have the necessary information to find the products mentioned in the videos. With Shoppable videos, they are immediately directed to the product in question and can make their purchase without leaving the app. Note : Shopping videos are also available in TikTok In Feed Ads (eligible in France), offering additional features that are not available in organic.
The Product Catalog
It takes the form of a new tab added to its TikTok profile, bringing together all of the brand’s products in one place. This allows for navigation similar to that of a website, allowing users to make their purchases online. However, it is important to note that this feature is not accessible in advertising.
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How to register on TikTok Shop?
If your brand is one of the eligible countries mentioned above, here are the steps to get the TikTok Shop tab on your profile.
1) Register as a seller
First, you will need to register as a seller by providing your phone number or email address depending on your country. Here is the registration portal (US sellers): https://seller-us-accounts.tiktok.com/account/register
2) Sending a request
You then need to apply to become a seller on TikTok. You will be asked for several supporting documents, including an ID and a certificate from your business.
3) Review
You will have to wait a few days before receiving the result of your application from TikTok via email.
4) Setting up your store
Once you’ve confirmed your eligibility, you’ll link your TikTok account to your store and integrate your products. An integration between Shopify and TikTok makes it easy to integrate your products.
TikTok soon to compete with Amazon in the UK?
Despite the challenges, TikTok is continuing to improve its shopping services in the UK. And rightly so, as it is now the biggest consumer spender in the world.
Q1 2023 figures – Source: Data.ai The platform has just launched a new program (only in the UK) called “Fulfilled by TikTok” , an initiative aimed at further simplifying the way merchants sell on its platform. However, this program seems to have much bigger ambitions: it aims to compete with e-commerce behemoths such as Amazon, Wish or AliExpress. The concept is simple: TikTok will handle all the logistics and act as a middleman between sellers and buyers. The aim is to ensure faster shipping for UK consumers by offering premium next-business-day delivery (for all orders placed before 7pm). To do this, TikTok will take care of the storage, packaging of all ordered products. TikTok will then take care of delivering the products to customers itself . To learn more, you can read the article on the FBT program . This step forward will propel the social shopping market to new horizons. However, consumer adoption remains to be confirmed, as does the possibility of TikTok expanding these programs to more countries. Need support to develop your sales on TikTok? Neads takes care of both the creation of UGC videos and the management of your campaigns on TikTok Ads .
By Nathan Elmaleh
