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| Tik Tok is testing in-app purchases to challenge Facebook |
TikTok, owned by the Chinese company ByteDance, is partnering with brands like fashion brand Hype to test in-app sales in Europe. This initiative increased competition with Facebook and blurred the lines between social media and online shopping.
The popular platform hopes to replicate the overseas success of its Chinese version of "Douyin", which generated $ 26 billion in e-commerce transactions in its first year of operation.
TikTok has begun working with retailers in markets like the UK to discuss how to sell products directly to millions of users within the app.
Although TikTok has carried out marketing activities in the past, the current experience is a precursor to the further adoption of global e-commerce services.
So far, the prototype is only available to select participants, and it remains unclear when the company will start its official release.
His huge storefront included on his TikTok account a collection of products, as well as product images and pricing.
Bytedance is actively entering the $ 1.7 trillion e-commerce landscape in China, hoping to add another point of growth to its performance ahead of the IPO.
The goal is to tackle more than $ 185 billion in e-commerce annually by 2022, depending on the impact of social media platforms TikTok and Douyin.
Unlike Chinese competitors Alibaba and Tencent, the ByteDance app has a large global fan base and the company's founding partners hope to use it as a springboard for developing online trading games.
The company said, “We tested TikTok and learned through e-commerce products and partnerships. We are constantly looking for new ways to add value while exploring these important avenues for users, developers, and consumers. Brand communities. Post updates.” Ready. ”In a press release.
The move comes at a time when global social media companies are scrambling to capture internet retail stake. EMarketer expects the industry to reach $ 5 trillion in revenue this year.
Last May, in addition to the Instagram photo-sharing app, Facebook also introduced new tools to improve the shopping experience on its platform.
TikTok began testing online shopping with promotional links with Wal-Mart and the Canadian e-commerce company Shopify.
Usually companies tag their products on TikTok social content and use links to direct buyers to their website. However, technically, users will still appear in the TikTok app.
With Facebook, companies can create in-app storefronts or direct users to third-party services.