TikTok is undoubtedly one of the most popular social media platforms in recent years. Almost everyone spends at least a few hours every day on the app, either watching videos or creating content. The app is so successful that even other social media giants like Instagram and Twitter are making their feeds and content types similar to it.
However, while its competitors are copying it, the Chinese company is not just standing still. TikTok, wanting to adopt the concept of a super app, is expanding its empire into e-commerce with “TikTok Shop Shopping Center”. Here are the details…
How TikTok is Using Its Virality to Conquer E-Commerce
The concept we call a “super app” is actually a quite challenging goal to achieve. These apps are notable because they are used not just for one task, but for many different tasks. For example, consider WeChat from China, in which we can do many different operations, from messaging to much more. TikTok is moving in a similar direction and is reportedly launching a new platform called “TikTok Shop Shopping Center”. This will allow users to buy items directly from Chinese sellers through the app.
The new platform is expected to launch in August and will offer a wide variety of products, including clothes, electronics, and home goods. TikTok will handle the marketing and logistics for the platform, while the Chinese merchants will be responsible for manufacturing and shipping the products.
Unfortunately, the “TikTok Shop Shopping Center” will initially be exclusive to China. It might become active in other markets over time, depending on the success of the project. What’s particularly intriguing is how it will operate. It is currently unclear whether TikTok will establish a platform working with local e-commerce companies, or create a new marketplace. Regardless, the company has a significant advantage, and if used well, it could be very successful.
It’s worth noting that what you’re reading from now on are not absolute facts but personal opinions, although it can’t be said that I’m totally wrong. E-commerce is one of the most common models in the world today, and thanks to open market platforms like Amazon and Alibaba, many people are making money from these places. However, most sellers complain about platform commissions. The main source of income for all these platforms is these commissions, so they can’t easily change their policies.
If TikTok were to follow a similar logic, since it’s not their main source of income, they could keep e-commerce commissions low. We’ve seen Chinese brands applying similar policies in various sectors in the past. Yet, all these are nothing more than opinions and predictions for now. We have no choice but to wait to see whether the social media giant will be successful in this area.
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