Tik Tok wants to expand and it wants to do it in a big way by challenging e-commerce giants like Amazon and Shein and is developing its own version of e-commerce.
TikTok has confirmed that it is testing, on its app, a new e-commerce section called “Trendy Beat”. The products on sale on Trendy Beat are shipped and sold by its subsidiary, ByteDance. The new function, first reported by the Financial Times, is currently being tested only in the United Kingdom. The peculiarity of the shopping section is that it offers popular items that have appeared in trending videos.
The company specifies that this initiative is not being tested in the United States, because in the American territory they are concentrated on another test. In fact, in the USA they are experimenting with Tik Tok Shop, which allows various brands to sell their products on the well-known platform.
Tik Tok filed an application to trademark the word Trendy Beat last month, indicating that the trial could eventually expand to the United States. The trademark application lists apparel items such as dresses, scarves, hats, footwear, swimsuits, sleep masks, sweaters, skirts, shirts, dresses and more.
ByteDance’s plan to start selling its products on the popular app is being internally referred to as “Project S,” the Financial Times reports. The FT report states that Project S is intended to capitalize on TikTok’s popularity and the products that gain popularity on the app, which will then allow ByteDance to acquire or manufacture those products. ByteDance will reportedly use a network of suppliers to produce the requested items.
With its new e-commerce initiative, TikTok is looking to challenge retailers like Amazon and Shein, the new look marks an evolution from TikTok’s current e-commerce strategy, which is primarily represented through its TikTok Shop marketplace. With TikTok Shop, the company allows brands to sell their products directly within the app, but with this new feature, TikTok would sell its own products. The new look sees TikTok operate an e-commerce model similar to how Amazon Basics and Shein promote and sell their best-selling products.
The news came as TikTok has listed brands like PacSun and Revolve on the TikTok Shop, which it has been testing in the US since last November. TikTok Shop has seen success in Asian markets, but has struggled to gain traction in the UK, according to previous reports from the Financial Times. As a result, it’s no surprise that the company is choosing to test its new e-commerce initiative in the UK before eventually bringing it to the US.
It’s worth noting that while TikTok continues to work on its shop features, its rival apps are scaling back some of their e-commerce efforts after failing to deliver solid results. Instagram removed its shop tab in January and later announced it would abandon its live shopping efforts. Facebook also ended its Facebook Live feature in August 2022.
Although TikTok is still in its early stages of e-commerce in the US, the app already has a significant influence on users’ shopping habits. The phrase “TikTok made me buy it” has become popular because of the app’s ability to drive impulse sales. The term now has 7.4 billion views on TikTok, and the hashtag has 59.3 billion. The new in-app purchasing feature would dramatically increase sales by giving users easy, direct access to a seamless discovery and purchasing experience.
Tik Tok wants to expand and it wants to do it in a big way by challenging e-commerce giants like Amazon and Shein and is developing its own version of e-commerce.
TikTok has confirmed that it is testing, on its app, a new e-commerce section called “Trendy Beat”. The products on sale on Trendy Beat are shipped and sold by its subsidiary, ByteDance. The new function, first reported by the Financial Times, is currently being tested only in the United Kingdom. The peculiarity of the shopping section is that it offers popular items that have appeared in trending videos.
The company specifies that this initiative is not being tested in the United States, because in the American territory they are concentrated on another test. In fact, in the USA they are experimenting with Tik Tok Shop, which allows various brands to sell their products on the well-known platform.
Tik Tok filed an application to trademark the word Trendy Beat last month, indicating that the trial could eventually expand to the United States. The trademark application lists apparel items such as dresses, scarves, hats, footwear, swimsuits, sleep masks, sweaters, skirts, shirts, dresses and more.
ByteDance’s plan to start selling its products on the popular app is being internally referred to as “Project S,” the Financial Times reports. The FT report states that Project S is intended to capitalize on TikTok’s popularity and the products that gain popularity on the app, which will then allow ByteDance to acquire or manufacture those products. ByteDance will reportedly use a network of suppliers to produce the requested items.
With its new e-commerce initiative, TikTok is looking to challenge retailers like Amazon and Shein, the new look marks an evolution from TikTok’s current e-commerce strategy, which is primarily represented through its TikTok Shop marketplace. With TikTok Shop, the company allows brands to sell their products directly within the app, but with this new feature, TikTok would sell its own products. The new look sees TikTok operate an e-commerce model similar to how Amazon Basics and Shein promote and sell their best-selling products.
The news came as TikTok has listed brands like PacSun and Revolve on the TikTok Shop, which it has been testing in the US since last November. TikTok Shop has seen success in Asian markets, but has struggled to gain traction in the UK, according to previous reports from the Financial Times. As a result, it’s no surprise that the company is choosing to test its new e-commerce initiative in the UK before eventually bringing it to the US.
It’s worth noting that while TikTok continues to work on its shop features, its rival apps are scaling back some of their e-commerce efforts after failing to deliver solid results. Instagram removed its shop tab in January and later announced it would abandon its live shopping efforts. Facebook also ended its Facebook Live feature in August 2022.
Although TikTok is still in its early stages of e-commerce in the US, the app already has a significant influence on users’ shopping habits. The phrase “TikTok made me buy it” has become popular because of the app’s ability to drive impulse sales. The term now has 7.4 billion views on TikTok, and the hashtag has 59.3 billion. The new in-app purchasing feature would dramatically increase sales by giving users easy, direct access to a seamless discovery and purchasing experience.