2nd February 2024
TikTok is continuing its e-commerce transformation, exploring an experimental feature that could potentially turn every video on the platform into a storefront, as reported by Bloomberg.
Currently undergoing limited testing, this new tool automatically identifies products within videos, guiding viewers to explore and purchase similar items on TikTok Shop. This strategic move is part of TikTok's broader ambition to evolve its Shop into a multibillion-dollar e-commerce powerhouse in the United States, challenging established players like Amazon, Temu, and Shein.
Previously, only approved influencers and brands had the privilege of tagging products in their content. With the introduction of this new feature, TikTok aims to democratize the shoppable experience, bringing e-commerce links to a broader array of videos on the platform.
Despite the impressive numbers—over 5 million new U.S. customers purchased items via TikTok Shop during the recent Black Friday and Cyber Monday season—TikTok's user growth has started to show signs of slowing. This raises the question of whether the slowdown might be associated with the app’s TikTok Shop expansion, a development that has left some users expressing their disappointment.
In addition to the shoppable video feature, TikTok is exploring other strategies to enhance its e-commerce endeavours. The company is reportedly planning to open studios in Los Angeles, allowing creators to livestream and sell products, providing them with an alternative to recording promotional videos at home.
Sources: Bloomberg, MediaPost, The Verge, TechCrunch
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