TikTok is moving forward with plans to launch online stores in the U.S., despite a failed launch in the U.K. this summer.
The Financial Times reports that TikTok is preparing to launch online stores before the holiday season with several major brands.
The online stores combine TikTok’s live streams with e-commerce to allow viewers to buy products without leaving the app.
Live-shopping is transforming e-commerce in Asian markets, but is struggling to take off in the West.
In July, TikTok abandoned shopping in the U.K. after it failed to meet expectations. A U.S. launch would make this the second time TikTok has tried to launch online shopping outside of Asia. This time, however, it will be different, as TikTok is not doing it alone.
TikTok will partner with TalkShopLive, a Los Angeles-based company, to deliver goods to the United States.
TalkShopLive has 4 years of experience with trade flows and the infrastructure needed to bring TikTok’s vision to life.
The Financial Times reports that TikTok and TalkShopLive are still finalizing arrangements, and no contracts have been signed. That’s probably why there’s no official announcement yet.
There is a significant incentive for TikTok to succeed in real-world shopping, so we see the company continuing to move in that direction.
While brands and influencers make money from selling products, TikTok gets a commission on every purchase. The gamble of online shopping can pay dividends.
Live-shopping is a huge success in China, where annual sales reach hundreds of billions, although Western consumers have reacted differently.
Meta will know this firsthand as it shut down Facebook Live Shopping in early October, saying consumers’ browsing habits are shifting to short videos.
TikTok has already locked down the short video market. Now it wants to be a leader in real-time shopping.
Without established competitors in live shopping on social media, TikTok may not be the best time to enter the U.S. market.
What that means for business remains to be seen. We don’t know if TikTok will be open to all interested companies or just limited brands.
We’ll probably know more when TikTok finalizes the details and makes an official announcement.