Tiktok buyer behaviors different from traditional online retailing platforms like Amazon, eBay, & Walmart - By Luusama Alan Lee
2024-01-29 17:44:35
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By Luusama Alan Lee
In Sept 2023, TikTok launched an online retail store in the US version of the app, which making Tiktok in direct competition with e-commerce platforms like Amazon, Shein, and Temu.
For the new store, Tiktok sellers pay a small commission to sell their products on the platform. TikTok is purchasing its own inventory as part of the initiative, and will handle things like logistics and customer service. Most of the items, ranging from kitchen gadgets to toys, will come from manufacturers in China. Users will be able to browse goods from both the new store and TikTok Shop through a dedicated e-commerce tab within the app.
Unlike the traditional online retailer platforms, consumers on Tiktok Shop will buy into content, not products.
The shopping results in sales, profit and brand awareness replies on the video content that the sellers can create. TikTok Shop's marketplace will be depending heavily on a content-first strategy to influence buying behaviour, which will essentially replicate its already highly successful and addictive video content section that saw unexpected brands, especially in beauty, reach new heights when influencers, bloggers or ordinary app users include a shop link to a product.
According to the data from HubSpot, 75% of TikTok buyers prefer it when a brand creates content around challenges, trends or memes, & encouraging people to join. But more than that, brands with little to no advertising presence on TikTok are finding success simply because sellers are using, posting and tagging product links. Soon, TikTok has become a beauty shopper's playground.
Overall, video content will be the key point on TikTok Shop's success in coming years. According to the data provided by online association, social commerce will account for 50% of US e-commerce sales by 2027.
Alan Lee
Alan Luusama Lee is a founder of Masei & Ryland eCommerce as an international consulting firm with his over 20-year working experience in eCommerce & global trading business.
Alan Lee was born in Hong Kong, while educated in US & graduated at University Of Hawaii. He has 20+ years experience working in eCommerce sector worldwide. Based on the needs of each client, as an experiencial eCommerce consultant, Alan and his team assists clients worldwide to onboard many different platforms & set up teams for clients with his analytical, data-driven approach, & platform connection.
Alan Lee has also been well-known for his leadership & board experience on eCommerce businesses in China, Hong Kong & US. Please feel free to contact him via email to: Alan@amzhongkong.com or whatsapp: +852-9232-7550 !!
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