Have you downloaded TikTok? We already know that the answer is probably yes.
As of 2023, the short-form video hosting platform has been downloaded more than 4 billion times and generated an estimated $16.1 billion revenue.
TikTok has come a long way since its launch in 2016.
It’s the world’s fastest-growing platform and popular with audiences of all ages around the world.
It’s become a constant in our everyday lives and essential for businesses of all sizes looking to connect with an audience and increase brand awareness.
And, it’s changed the way we consume content and what we want from it.
TikTok is a creative hub that’s made short-form content accessible (for creators and viewers) and sparked a demand for content that feels authentic.
With addictive content, emerging trends, and a thriving community TikTok had it all.
But that didn’t stop them from taking it up a notch.
Back in 2021, TikTok originally launched TikTok Shop in the UK, an e-commerce platform integrated within the app.
It allows merchants and creators to showcase and sell products to their audience which they can then purchase without leaving the app.
It’s safe to say that TikTok Shop has seen huge success.
After its US release in September 2023, following months of testing, TikTok Shop generated $363 million in consumer spending with 37% of US users making purchases directly through the platform or via in-app links.
There’s no doubt about it, TikTok is changing the buying landscape.
That being said, how can businesses make the most of TikTok Shop and what are the pros and cons?
What is TikTok Shop?
TikTok Shop is an e-commerce platform integrated within TikTok.
It allows brands and creators to showcase and sell products to their audience who can then make a purchase without leaving the app.
What makes TikTok Shop unique? It combines shopping and entertainment to create an engaging, authentic experience.
Brands and creators don’t just put products up for sale, they can promote them using several interactive in-app touch points including:
- LIVE shopping events and videos
- In-feed videos
- Collating products on their own in-app store
For brands, TikTok Shop has enhanced the way they are able to connect with their audience and encouraged them to forge long-term partnerships with creators.
As for users, TikTok Shop has made product discovery and purchasing fun and convenient.
Many fan-favourite brands like L’Oréal, Look Fantastic, Colour Wow, and Maybelline have now taken full advantage of TikTok Shop.
For the right brand, at the right time, it’s clear TikTok Shop can be valuable but why’s it so successful?
Why has TikTok Shop been so successful?
We may have initially had our reservations, but now can’t deny that TikTok Shop is a hit.
And, in our opinion, there are several reasons why it’s worked so well.
- It’s made learning about and buying a product quick and easy for a younger audience.
- It’s leveraged influencer marketing and user-generated content to create an experience that feels genuine.
- The virality of products on TikTok helps fuel in-app sales.
- Creators can partner with brands and become affiliate sellers, this incentive motivates them to post about a product consistently creating subliminal messages
Giant pickles, stainless steel tumblers, and heatless curlers are just three examples of products that users went wild for and couldn’t stop purchasing on TikTok Shop.
Now we know what TikTok Shop is and why it’s proven so popular, let’s think about how brands can make the most of TikTok Shop.
How can brands make the most of TikTok Shop?
If you’re a brand that’s active on or thinking of delving into TikTok Shop, we’d recommend you make the most of the following features to strengthen connections with your audience, build brand awareness, and potentially drive sales.
TikTok LIVE
We may poke fun at teleshopping, but TikTok recognised the power of this format and pushed it.
TikTok LIVE is a live-streamed section of TikTok that provides brands and creators the opportunity to connect directly with their audience by answering questions and replying to comments in real-time.
For a brand, a TikTok LIVE is a great chance to showcase your product.
Depending on the product, a brand can do tutorials or try-ons to show an audience exactly how it should work or be used while answering any questions about the product. By doing so, brands can offer their audience reassurance and prove just how effective their product is.
Whilst TikTok LIVE’s have become increasingly popular and worked wonders for many brands, one size doesn’t fit all. Using TikTok’s in-app analytics brands can determine whether it’s a strategy that’s effective or not – these are available in ‘Creator Tools’ under ‘Live Centre’
A good example of a brand that took advantage of TikTok Shop is Made By Mitchell.
The cruelty-free cosmetics brand was founded by online creator Mitchell Halliday in 2020 and has become a fan-favourite.
In 2023, Made By Mitchell hit 500,000 followers on TikTok and celebrated with a week of multiple LIVEs per day.
The brand’s founder went LIVE day after day answering questions, replying to comments, offering flash deals, and doing product tutorials on the faces of fellow beauty creators like Amelia Olivia, Grace’s Faces and reality star Gemma Collins.
Made By Mitchell’s TikTok LIVE’s became something fans couldn’t wait to watch, engage with, and buy from.
By the end of the week, Made By Mitchell became the first TikTok Shop brand to reach $2 million dollars in 1 week.
Creator Collaboration
We’re sure this one isn’t news to you.
Creator collaboration is key on TikTok.
Businesses of all sizes have sought to partner with big and small creators to produce transparent, relatable content whilst showcasing their product.
By partnering with creators who are an existing brand advocate or fit into a target audience, brands are able to tap into the voice of their ideal consumers and create stronger connections.
Previously, TikTok introduced TikTok Shop Affiliate.
TikTok Shop Affiliate is a programme that makes it easy for brands to connect with creators to sell their products on behalf of them. It aims to help brands grow their in-app presence by reaching a wider audience and highlighting their products.
TikTok Shop offers two types of collaboration for businesses:
- A targeted collaboration allows a business to invite handpicked creators to promote products
- An open collaboration means all creators who are qualified for TikTok Shop Affiliate can apply to promote products
Pros and Cons of using TikTok Shop
We now know more about TikTok Shop and its best features, but what are some of the pros and cons if you’re a business thinking of taking on TikTok Shop.
TikTok Shop Pros
- You can reach a new and larger audience by partnering with different creators
- You can increase your brand and product visibility via a visual platform, so audiences can see what they’re missing and why it’s worth the hype
- You can boost your reputation and discoverability by having real consumers advocate for your brand (bigger or smaller creators who love your product)
- You can take advantage of TikTok’s 5% commission fee which is low in comparison to other platforms
TikTok Shop Cons
- Payment options are limited to debit / credit cards, Apple Pay, and Klarna (many people prefer using PayPal when shopping online for protection but this isn’t available)
- Although it’s expanded, TikTok Shop isn’t available in all countries so it’s worth checking this and whether it affects your target audience
- Certain products can’t be sold on TikTok Shop as they may be restricted or unsupported (eBooks, software etc)
Whilst TikTok Shop can be valuable and offer incredible opportunities for some brands, it unfortunately won’t work for others.
But that doesn’t mean you shouldn’t be active on TikTok if it’s relevant for your brand and where your audience is active.
You can still create eye-catching content that promotes your brand and products, but instead of keeping your audience in the app send them to your website.
If you’re interested in hearing more about TikTok and looking to gain even more valuable insight then make sure to tune into this episode of The Girls in Marketing Podcast. Whether you use TikTok as part of your marketing strategy or are an avid user, you don’t want to miss this!
