TikTok Shop: Influencer Marketing Driving New Social Commerce Initiative

TikTok is reshaping the world of social commerce, introducing shoppable content to its platform and leveraging the power of influencer marketing. 

Just a few weeks ago, social media platform TikTok introduced the full launch of TikTok Shop in the U.S. The platform, which touts over 150 million U.S. users, now allows purchases directly from creator posts. 

The company is looking to cash in on popular trends like the #TikTokMadeMeBuyIt hashtag, which currently has over 71 billion views. The new shopping capabilities are available in several iterations: through its in-feed video and live streaming, via custom product collection from profile pages, and within a Shop tab where businesses can display their products through a dedicated marketplace. 

Additionally, the social platform has an affiliate program where creators can partner with sellers on commission-based marketing initiatives, introducing another way to monetize their social presence. 

TikTok also has advertising avenues, which many brands have already jumped on. David’s Bridal, for example, along with its digital agency partner, automated and optimized its shoppable content strategy via TikTok, reporting performance exceeding the 2x average benchmark for click-through rates, reaching more than 16MM. 

Consumer Goods Companies Leveraging TikTok

TikTok users are accustomed to seeing consumer goods products splashed across their For You Page. With TikTok shop, however, buying products directly has never been easier. Most major CPG companies already have a presence of the platform, but here are a few brands with high engagement and follower counts:

• Adidas: 5.5M Followers
• Fenty Beauty: 2.5M Followers
• Crocs: 1.9M Followers
• Scrub Daddy: 3.8M Followers

The company also offers a fulfillment service, through which merchants can store, pack, and shop products to customers.

Efforts to ban the app in the U.S. continue on, and this could spell trouble for brands who are relying on social commerce more than ever. The app, however, has made changes in order to comply with U.S. regulations, including keeping U.S. user checkout data stored in the country. 

[Read more: Why a U.S. TikTok Pullback Could Hurt the Retail and Consumer Goods Business]

The Power of TikTok

Bloomberg reports a new Black Friday program on TikTok this holiday season. The news agency reported TikTok is offering merchants to subsidize discounts of as much as 50% in order to participate. This could be a significant source of revenue for the company, competing against Black Friday retail mammoths like Walmart and Amazon. According to Bloomberg, TikTok is looking to sell $20 billion in merchandise this year. 

[See also: Holiday Retail Forecasts and Predictions 2023]

A TikTok CPG Insights survey conducted last year found that 79% of millennials and 75% of Gen-Zers discover new CPG products more often after joining TikTok, and 3 in 4 make the majority of their household purchase decisions right on the platform. Of all CPG products being marketed on TikTok, the top three categories are Food & Beverage (91%), Personal Care (80%), and Household Care (73%).    

This article first appeared on the site of sister publication RIS.