Since launching in 2021, TikTok shop has grown to host a network of 15 million sellers around the world, with six million of those joining the platform in the second half of 2023 alone. According to Sprout Social, in 2023, 71.2% of TikTok shop users had bought something after seeing it in their feed.
Its commission-based structure is a win-win for both content creators and retailers, which is undoubtedly helping to propel the popularity of shopping on the platform. To give you a sense of the commercial power of TikTok Shop, online fashion retailer, Rebellious Fashion has seen a 400% increase in sales since joining with a 45% revenue hike and 80% share of affiliate sales. Benefit Cosmetics had an increase in organic followers and engagement within just 3 days of launch, 62,500 live audience views and 280,000 total live likes.
There is no doubt TikTok Shop is a profit-delivering enterprise, if done correctly. As a big fan of the platform, which is so perfectly designed for my generation of shoppers, I’ve taken a keen interest in its development.
Here’s my perspective on what every brand should know about Tik Tok, particularly if they are keen to target the power consumer, Gen Z shopper.
1. It’s designed for impulse purchases
Many TikTok Shop users make multiple ‘impulsive’ purchases whilst using the app as a source of research. Whether you’re looking for a new outfit for holiday, or trying to find the best weaning set for your child, TikTok Shop hosts a huge variety of different products suitable for all ages and genders. The TikTok algorithm personalises results based on your watched history and engagement so will make suggestions based on that.
2. TikTok taps into the Gen Z shopper mindset
TikTok is more informative and personal compared to Instagram which is more aesthetically pleasing to ‘fit in’ with the theme of the page. Put simply, I have purchased multiple items on TikTok shop, ranging from clothing, beauty products to home interior, yet, I have never purchased through Instagram.
There are a few brands that I follow on TikTok that go live on the app at least twice a week. They will go live for a couple of hours in the evening simply showing the team packing customer orders whilst offering discounts such as free shipping or a gift with any purchase.
Gen Z’s, including myself, are more attracted to personal and ‘real life’ videos such as vlogs and a ‘day in the life’. Going ‘Live’, provides this more personal view of the brand which Gen Zs are fascinated in. ‘Live’ also gives customers a chance to message in the live chat with any questions they may have, and the business can answer straight away during the live, instead of having to wait a few days for answer an email.
3. It has linked to affordable shopping platforms
Gen Z is influenced by affordable ways of paying such as Klarna and Clearpay who have garnered nearly 17 million users. These are now a feature on TikTok Shop, making it easier for customers to make ‘impulsive’ purchases. TikTok Shop also offer a lot of ‘dupes’ through the shopping platform, such as the latest viral handbag or trainers, making it more accessible for many young adults who like to keep up with trends.
4. ‘Recommended for you’ and ‘Today’s Deals’ are a real draw
I’m a sucker for a ‘recommended for you’ page, showcasing a variety of products that I have shown an interest in, whether that be fashion, a beauty product, protein powder or even some new bedding. This feature entices me to have a look and see what deals I can find. Along with the ‘Today’s Deals’ page, I am usually purchasing at least one product a month from this platform.
5. It’s incredibly easy to use and driven by consumer recommendation
The app gives you the peace of mind of being able to track all of your orders in one space along with storing your details so you don’t have to fill out a form each time. It makes the whole shopping process more efficient and probably ‘too easy!’ I also enjoy the fact that customers can leave a review, just like you can online, leaving some pictures and a rating makes the retailer and product feel genuine and customers are more likely to purchase a product after reading reviews.
TikTok is a seriously competitive enterprise.
Capitalising on the resale market, in April 2024, TikTok UK announced partnerships with reputable players like Luxe Collective, Sellier, Sign of the Times, HardlyEverWornIt and Break Archive. This enables discovery-based shopping for these brands, while also building user trust in TikTok Shop and helping TikTok gain authenticity and sustainability credentials through association. This builds on other recently launched categories in the marketplace, including fresh flowers and live plants, allowing an increasing number of retailers in different sectors to use the platform.
Tik Tok also takes safety and security seriously. It claims to have spent more than £319 million in 2023 investing in tools, technology and people to keep its marketplace safe for consumers and businesses. There have also been reports of TikTok removing 133,000 individual products after they were listed on the site, deactivating the accounts of more than one million sellers and removing their products because of policy violations. Jan Wilk, head of operations for TikTok Shop UK, said ‘As we enable thousands of businesses to sell millions of products, the TikTok Shop Safety Report demonstrates our continued investment in creating safer and trustworthy shopping experiences for our community.
As a seller on TikTok Shop, you can collaborate with thousands of creators through its affiliate program, offering an enticing commission that will encourage creators to promote your products. This has worked well for many well-known brands such as L’Oréal Paris, featuring across many different influencer's pages, showcasing their new products offering unique discounts through the app.
With the huge growth in TikTok shop users since the beginning of this year, it will be no surprise if TikTok Shop overtakes Instagram in sales over the next couple of months. Some analysts have also suggested it might begin to compete with the likes of eBay and Amazon, I guess time will tell.