Why Brands Should Be on TikTok Shop: A Growth Strategy Perspective

Social media platforms are quickly becoming major contenders in the online shopping arena, with the Social Commerce market predicted to grow from $67 billion this year to $100 billion by 2025. Leading this wave is TikTok, a platform once primarily associated with entertainment and content creation, now striving for frontrunner status in the eCommerce landscape.

The launch of TikTok Shop in September 2023 confirmed the platform’s ambition, targeting its massive user base of 150 million and leveraging the modern shopper’s desire for ease and efficiency. Such potential is difficult to ignore, considering that nearly half of all U.S. eCommerce sales will be attributed to Mobile Commerce by 2027. In fact, 78% of current consumers lean on their mobile phones for shopping — and sales, rewards, and convenience are driving this trend.

But why should brands consider TikTok Shop specifically as part of their growth strategy?

First and foremost, engagement. TikTok's U.S. user engagement averages two hours daily, significantly outpacing Amazon's 9.7 minutes. This prolonged exposure offers brands a unique window to capture the attention of potential customers and simplify the purchase journey. This opens up opportunity for brands to drive product discovery and convert engagements into sales on TikTok Shop.

Next, there's the Gen Z factor. A significant 68% of this demographic are predicted to purchase directly on TikTok, creating a new and promising avenue to the generation that's shaping future buying patterns. Moreover, an internal survey by Google revealed that 40% of people ages 18-24 are using TikTok as a source of broad information. TikTok is quickly becoming a major platform for information search, so brands should take advantage of its expanding user base to connect with broader audiences. Establishing a foothold on TikTok Shop now can be a strategic move to secure brand relevance for the coming years.

Influencer Marketing is the final piece in the Social Commerce puzzle. Today’s consumers are increasingly leaning toward their preferred content creators for product insights, reviews, and inspiration. Amongst its dynamic features, TikTok Shop has an affiliate program for influencers where they can team up with sellers to earn commission. As Influencer Marketing shows no sign of slowing down, brands should consider leveraging this TikTok Shop partnership.

As with any emergent platform, brands should do their due diligence before diving in. Users have expressed concerns about product authenticity, reliability, and privacy regulations on TikTok Shop, so be sure to research thoroughly and prioritize transparency when building your strategy.

So, what's the verdict for brands?

TikTok Shop leverages the rise of Social Commerce, the power of Influencer Marketing, and the growth of mCommerce, offering brands a clear advantage on the app. While new platforms inevitably present challenges, a strategic approach backed by expertise can position brands for success on TikTok Shop.

With a deep understanding of both eCommerce and growth strategy, the Direct Agents team is well-positioned to help brands maximize their presence on TikTok Shop. Reach out to [email protected] today to get started!

Sources

Amazon Confronts a New Rival: TikTok – WSJ

Mobile phones are the most popular devices used to shop, report says – Marketing Brew

Social Commerce Forecast 2023 – Insider Intelligence

TikTok Shop: Influencer Marketing Driving New Social Commerce Initiative – Consumer Goods Technology

What’s happening with TikTok Shop? The opportunity, the advantage, and the drawbacks – Insider Intelligence