TikTok plans to launch live shopping in the US. What does it mean for sellers?
Posted: Thu Dec 05, 2024 9:52 am
TikTok is planning to launch live shopping in the US in time for the holiday shopping season. How will it work? Let’s dive in!
Diana Salazar
Oct 7, 22 | 4 min read
TikTok live shopping
Reading time: 3 minutes
The era of social commerce is in full swing! And social media has become the best place for younger generations to research brands, according to Hootsuite’s Social Media Trends report .
In fact, 75% of Gen Z users in the US are influenced by social ads in their purchasing decisions. Which demonstrates the power of social media to convert followers into customers (when done right!).
TikTok, owned by ByteDance, understands this opportunity and is willing to take risks to reap the benefits. But the scenario has not been entirely favorable.
While social commerce features are a great investment opportunity for businesses, many large social media companies have had to rethink their strategies because customers have yet to adopt them.
Instagram had to shut down its merchant affiliate program in August this year and Facebook also ended its live shopping feature a couple of months ago .
However, TikTok is willing to take the risk. After abandoning live shopping in the UK for failing to meet expectations, the social platform will partner with TalkShopLive, which will provide them with infrastructure to launch live shopping features.
There are no official announcements yet, as both companies are still finalizing agreements and no contracts have been signed. We don't yet know when the shopping feature will be activated, but it will be coming soon.
How will TikTok live shopping work?
This feature will allow brands and creators to sell directly on the platform. It basically combines shopping with interactive live streaming, so users can shop without leaving the app.
Today, the most relevant country in this industry is China, where this modality is responsible for 10% of total e-commerce sales in the country.
TikTok began offering e-commerce list of sweden consumer email features in early 2021 when they announced their partnership with Shopify, allowing business accounts to add their catalogs to a tab on their profiles. Additionally, the social network has been testing live shopping in the UK since last year, making it the first market outside of Asia to test the feature.
While live shopping hasn't taken off in the West, it's transforming e-commerce in Asian markets.
In China, live commerce has shown astonishing results. TikTok’s Chinese sister app, Douyin, has tripled sales year-on-year.
Source: McKinsey & Company
Now, what's the trick for marketers?
Live shopping is certainly taking off, but many businesses are struggling to encourage brands and influencers to sell through the app. Why is that happening?
Some experts attribute these results to the fact that "the market is simply not ready" or that "overall consumer awareness and adoption in some countries is still very low."
Some of us believe that brands are missing out on features and forgetting about CX (Customer Experience) and its relationship to the customer journey.
How to make your strategies work?
As live shopping begins to grow in the West (and trust us, it is predicted to ), businesses will need to consider more rigorous strategies in conjunction with the most important players in this dynamic: influencers and their communities.
Brands should focus on creating authentic connections with their audiences.
The advantage of live shopping is credibility, so it's not only an opportunity to sell, it's also a way to provide relevant information about your products, position them and build customer loyalty through valuable real-time interactions. Is your brand ready to offer this?
The opportunities for businesses and how well TikTok will perform in the US market remain to be seen, so it’s best to be prepared!
Do you want to stay up to date with the best Marketing practices? I suggest you subscribe to The Beat , Rock Content's interactive newsletter. There you will find all the trends that matter in the digital Marketing landscape. See you there!
Diana Salazar
Oct 7, 22 | 4 min read
TikTok live shopping
Reading time: 3 minutes
The era of social commerce is in full swing! And social media has become the best place for younger generations to research brands, according to Hootsuite’s Social Media Trends report .
In fact, 75% of Gen Z users in the US are influenced by social ads in their purchasing decisions. Which demonstrates the power of social media to convert followers into customers (when done right!).
TikTok, owned by ByteDance, understands this opportunity and is willing to take risks to reap the benefits. But the scenario has not been entirely favorable.
While social commerce features are a great investment opportunity for businesses, many large social media companies have had to rethink their strategies because customers have yet to adopt them.
Instagram had to shut down its merchant affiliate program in August this year and Facebook also ended its live shopping feature a couple of months ago .
However, TikTok is willing to take the risk. After abandoning live shopping in the UK for failing to meet expectations, the social platform will partner with TalkShopLive, which will provide them with infrastructure to launch live shopping features.
There are no official announcements yet, as both companies are still finalizing agreements and no contracts have been signed. We don't yet know when the shopping feature will be activated, but it will be coming soon.
How will TikTok live shopping work?
This feature will allow brands and creators to sell directly on the platform. It basically combines shopping with interactive live streaming, so users can shop without leaving the app.
Today, the most relevant country in this industry is China, where this modality is responsible for 10% of total e-commerce sales in the country.
TikTok began offering e-commerce list of sweden consumer email features in early 2021 when they announced their partnership with Shopify, allowing business accounts to add their catalogs to a tab on their profiles. Additionally, the social network has been testing live shopping in the UK since last year, making it the first market outside of Asia to test the feature.
While live shopping hasn't taken off in the West, it's transforming e-commerce in Asian markets.
In China, live commerce has shown astonishing results. TikTok’s Chinese sister app, Douyin, has tripled sales year-on-year.
Source: McKinsey & Company
Now, what's the trick for marketers?
Live shopping is certainly taking off, but many businesses are struggling to encourage brands and influencers to sell through the app. Why is that happening?
Some experts attribute these results to the fact that "the market is simply not ready" or that "overall consumer awareness and adoption in some countries is still very low."
Some of us believe that brands are missing out on features and forgetting about CX (Customer Experience) and its relationship to the customer journey.
How to make your strategies work?
As live shopping begins to grow in the West (and trust us, it is predicted to ), businesses will need to consider more rigorous strategies in conjunction with the most important players in this dynamic: influencers and their communities.
Brands should focus on creating authentic connections with their audiences.
The advantage of live shopping is credibility, so it's not only an opportunity to sell, it's also a way to provide relevant information about your products, position them and build customer loyalty through valuable real-time interactions. Is your brand ready to offer this?
The opportunities for businesses and how well TikTok will perform in the US market remain to be seen, so it’s best to be prepared!
Do you want to stay up to date with the best Marketing practices? I suggest you subscribe to The Beat , Rock Content's interactive newsletter. There you will find all the trends that matter in the digital Marketing landscape. See you there!