According to official news from TikTok, after months of testing, TikTok Shop has officially been launched in the United States. Positioned prominently on the TikTok homepage, this feature offers users both video and live shopping services. For businesses and creators, TikTok Shop provides a plethora of features including live streaming, advertising, and affiliate programs to promote their products. Initially introduced in Indonesia, TikTok Shop has since expanded to the UK, Malaysia, Thailand, Vietnam, and other regions.
Notably, over 200,000 merchants have already flocked to the platform, a number that continues to grow.
The Potential of TikTok E-commerce
ByteDance, TikTok's parent company, has already demonstrated the immense potential of merging short video platforms with e-commerce through its Chinese counterpart, Douyin. In 2022, Douyin achieved a staggering GMV of $208 billion, just two years after the establishment of its e-commerce division. Such figures underscore the immense potential of integrating short video platforms with e-commerce.
In Indonesia, TikTok's first year of e-commerce operations in 2022 saw a GMV of $4.4 billion, with a target of $20 billion set for 2023 – a five-fold increase.
In Thailand, TikTok influencer Pimrypie, leveraging her mukbang and music content, has emerged as the country's top-selling influencer, boasting an average monthly GMV exceeding one million dollars.
These figures highlight the vast potential of TikTok e-commerce, especially in a massive market like the United States.
How Can Creators Profit from TikTok Shop?
According to TikTok's official release, creators can monetize in at least five ways on TikTok Shop:
- Share Products in Videos and Live Streams: Creators can showcase and recommend products in their videos and live streams, earning commissions by collaborating with sellers.
- Attract Followers with Creative Content: By producing engaging and captivating content, creators can amass a larger following, enhancing their influence and brand value, thereby attracting more businesses for collaborations.
- Collaborate with Merchants: Creators can partner with merchants to promote specific products in their videos, earning profits or commissions from these collaborations.
- Offer Advertising Services: By providing advertising services on TikTok, creators can produce ad content for businesses, helping them promote their products and brands on the platform.
- Join Affiliate Programs: By participating in TikTok Shop's affiliate programs, creators can collaborate with sellers and earn commissions by promoting sales links.
How Should Creators Seize This Opportunity?
- Define Account Niche: If you specialize in a particular domain, such as fashion, beauty, or home decor, consider collaborating with related brands to sell products on TikTok Shop. For instance, demonstrate a product's application in a video and guide followers to purchase using shopping tags.
- Enhance Content Quality: High-quality content is pivotal to attract followers. Consider creating tutorials, reviews, or experiential videos related to products to guide followers.
- Leverage Live Streaming: Live streaming has proven to be an effective sales tool, especially in markets like China where over 50% of products are sold via live streams. Engage with followers, answer product-related queries, and guide them to purchase on TikTok Shop.
- Expand Content Range: Think about diversifying your content, such as daily care related to the product, usage tips, or fun interactions with the product.
- Learn to Collaborate with TikTok Sellers: With over 200,000 sellers on TikTok, learn how to find, select, and collaborate with them. Many of these sellers hail from Asia, especially China (over 40% of Amazon platform sellers come from China). If you face challenges in this area, consider subscribing to ChingPro's AI agent product. As a purely AI-driven assistant, it can help you find, select, and contact these merchants without the typical challenges of traditional broker organizations.
In conclusion, TikTok e-commerce presents an unprecedented opportunity for creators. By recognizing and strategizing for this opportunity, creators stand to achieve immense success on TikTok.
About James Anderson
My journey began in brand marketing, where I collaborated with some of the biggest names out there. At ChingPro, I guide creators to understand and leverage brand collaborations. Let's make your brand partnerships count!