With the way e-commerce is booming, it has attracted investors and key players to venture into the sector or incorporate e-commerce in their already established line of businesses. TikTok one of the popular social media platforms just launched their e-commerce business “TikTok Shop” today September 12 2023 having over 150 million users.
Since last year November, Tiktok has been testing this new initiative in the US, UK, and some southeast Asian markets not until now that they are confident enough to release it out there to enjoy. TikTok company’s e-commerce business comes with different features such as a dedicated tab on the home screen, live video shopping, shoppable ads, and affiliate programs for creators.
This move has sparked excitement and curiosity among users and businesses alike. But what does TikTok Shop mean, and how will it benefit Nigerian users?
TikTok Shop
TikTok Shop is a new feature that allows users to easily discover and purchase products directly from their favorite creators’ profiles. This functionality aims to bridge the gap between content creation and shopping, offering a unique shopping experience.
TikTok Shop enables brands and creators to connect with customers based on their interests, combining the power of community, creativity, and commerce to deliver an easy shopping experience.
You can buy directly from creators when they tag their products from in-feed videos and live videos. Brands can create their product portfolios, which can be accessible from their profile pages.
The dedicated tab, allows users to search for different products, discover products through recommendations, browse items in different categories, and manage their orders. TikTok also has set up an affiliate option for sellers that lets them work with creators on a commission basis to sell products. So far, more than 100,000 creators have signed up for the Affiliate program.
TikTok told TechCrunch that the company has already signed up more than 200,000 sellers on the Shop product. More than 90% of sellers on TikTok Shop are based in the U.S. TikTok is utilizing popular trends like #TikTokMadeMeBuyIt, since both the hashtag and the term are generating billions of views.
However, apart from letting brands host their products on the platform, Tiktok Shop through Bytedance provides logistics solutions under “Fulfilled” along with a secure checkout method. In the U.K., Bytedance is already selling products from its subsidiary on TikTok.
With the launch of the TikTok Shop, the social network will gather more data from users including their financial details, shopping patterns, and addresses. The company was quick to point out that all this data for U.S. users is stored in the country and managed by USDS — a separate unit for managing U.S. data. Likewise, the data for other country users will probably be stored, and managed by the country’s regulatory policy.
Potential Impacts and Benefits on Nigerian Users
Increased Global Reach
As TikTok Shop gains huge purchases in the US, it will facilitate international connections between creators and businesses in Nigeria. This would open up new avenues for cross-border collaborations.
Influencer Marketing Opportunities
With this recent development, those aspiring to become influencers, and the ones we have already in Nigeria will enjoy more marketing opportunities through the TikTok shop. TikTok’s e-commerce integration has provided influencers with a powerful tool to monetize their content and promote Nigerian products to not only Nigerians but to a global audience.
Economic Boost
If Nigerian businesses tap into the US market through TikTok Shop, it could lead to an economic boost for the country. Increased exports and collaborations would positively impact Nigeria’s economy.
The launch of TikTok Shop marks a significant step in the platform’s evolution. While its impact on Nigeria is yet to be fully realized, it presents exciting possibilities for cross-border collaborations, influencer marketing, and economic growth as well as many other opportunities yet to be discovered that are beneficial.
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