The social media titan TikTok is bringing their ecommerce platform, TikTok Shop, to the United States in time for the holiday rush. Not only has TikTok set the standard for social media entertainment, but they are now looking to capitalize on their users’ influence to break into the retail sector.
Not only is TikTok launching their ecommerce platform, they’re going head to head with industry leaders like Amazon and Walmart. They’re even looking to open their own fulfillment center in Seattle, home base of Amazon!
TikTok’s move tells us several things about the way that users are influenced by the content they see (and spend too much time consuming…hand up here).
First, social media campaigns may well and truly be moving towards a reliable conversion rate. According to a study done by ChatDesk, anything around 3% conversion is expected from social media campaigns. Historically, Instagram has boasted slightly higher conversion ratings, averaging around 3.5% to TikTok’s 2.9%. That may soon be changing. TikTok Shop will be a separate platform inside the app, but users will be able to link directly to an Amazon-like experience through the content that they consume. With each new day that passes, TikTok is making it easier to impulsively say “yes” as a consumer to purchases that are recommended by popular influencers.
TikTok Shop also expands campaign and talent opportunities even further. Let me explain: Previously, multiple steps were required to take a new lead from discovery to signed. TikTok will now keep have the ability to keep the entire process in the app, making it easier than ever for someone to complete a transaction. This can open the floodgates for more micro influencers and athletes to not only create large amounts of engagement and raise brand awareness, but also drive easy conversions as well. Imagine pairing the boost of an athlete’s engagement with a higher probability of converting new customers!
Finally, the shop will add another way to elevate brands to a whole new level of visibility. Whether someone comes across a product thanks to a new viral challenge, or if they are simply browsing the shop, more eyes on the brand and message is a win for any organization dedicated enough to take advantage of the opportunity.
Progage came to life in early 2021, when NFL football player Kaden Smith and entrepreneur Kyle Fenner came together to create a sports marketing agency focused on helping brands win via creative storytelling and social media marketing.