TikTok Launches E-commerce in Time for Holidays

Alex Kerai Consumer Trends Reporter

Updated 21 November 2022

WhistleOut fast facts

TikTok is expanding its in-app offerings to include e-commerce.
Users can now make purchases from select businesses in the app.
Other social networks, including YouTube and Instagram, also launched e-commerce features.
TikTok’s e-commerce expansion comes before the holidays and at a time when consumer purchases are heavily influenced by social media ads.

Just in time for the holidays, TikTok is launching its very own e-commerce platform in the US. TikTok Shop will allow businesses to sell their products directly through the app.

The app’s expansion into e-commerce couldn’t have come at a better time as consumers prepare for Black Friday and holiday season spending. (The company had previously partnered withShopify for in-app sales.)

“With millions of loyal users globally, we believe TikTok is an ideal platform to deliver a brand new and better e-commerce experience to our users,” TikTok wrote in a job posting. “Together we can build an e-commerce ecosystem that is innovative, secure and intuitive for our users.”

For years, people have looked to social media for what to buy. The hashtag #TikTokMadeMeBuyIt has been viewed over 29.2 billion times, with brands and influencers on the platform leveraging their network into sales. Last year, NPR found that users on TikTok didn’t mind if their “entertainment [video] also happens to focus on a product.” The reporters found that TikTok flattens the sales funnel, leading people to find a product, buy it, and then tell the world "#TikTokMadeMeBuyIt.”

TikTok Shop is a natural expansion of the app's power as a network and commerce tool. After testing the Shop feature in southeast Asia and the UK, TikTok began testing in the United States last week. (The seller side of TikTok is live, and businesses can utilize the features.)

Right after launching TikTok Shop, TikTok also partnered with American Express for Small Business Saturday. TikTok is offering ad credits for small businesses and launching the #ShopSmall Accelerator to help small businesses grow. American Express's Shop Small Impact Study found that “67% of Gen Z users have shopped from a small business that was displayed on their 'For You' page.” TikTok’s own study found that 44% of all users “discovered something on the platform and immediately went out to buy it.” (A WhistleOut report only 4.4% of shoppers this holiday season are prioritizing small businesses.)

TikTok is also planning to launch live shopping through the app—partnering with TalkShopLive, according to the Financial Times—and would allow creators to host live shopping sessions, similar to the television network QVC.

But TikTok is not alone in social media’s expansion to e-commerce.

TikTok Shop comes at the same time as YouTube Shorts—YouTube’s response to TikTok—began testing shopping features and affiliate marketing. The company is starting with eligible creators from the US and allowing viewers in select countries—the US, India, Brazil, Canada, and Australia—to shop YouTube Shorts. (Instagram already allows users to purchase products in-app, and Facebook offers a Marketplace.)

As consumers begin shopping for the 2022 holiday season, social media product finds will be in high demand. A WhistleOut survey found that 86% of respondents made a purchase influenced by social media in the last six months. Although most ads were seen on Facebook and Instagram (both owned by Meta Platforms), TikTok ads were responsible for nearly one-third of purchases. Now, with TikTok Shop, creators and businesses can make sales immediately.

With fourth-quarter holiday sales projected to reach $280 billion, businesses are looking everywhere for sales. Social media networks are offering them new platforms, and TikTok Shop has the potential to be the most lucrative since many consumers find gift ideas on the social network.

If you’re looking for Black Friday ideas, we have a list of deals on our Black Friday deals page.

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Alex Kerai

Consumer Trends Reporter

As WhistleOut's Consumer Trends Reporter, Alex keeps up on the latest breaking mobile tech news in the U.S. and Canada, from smartphone development to network shutdowns. His work can be seen on The Penny Hoarder, Business.org, Biz2Credit, and more.

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