TikTok is moving ahead with its plans to launch direct shopping in the US, despite an unsuccessful launch in the UK this summer.
The Financial Times reports that TikTok is preparing to launch live shopping ahead of the holiday season with several big brands.
Live Shopping combines TikTok’s live broadcast with e-commerce to allow viewers to purchase products without leaving the app.
Think of it like QVC for the social media age.
Direct shopping is transforming e-commerce in Asian markets but is struggling to take off in the West.
In July, TikTok abandoned direct shopping in the UK after it failed to meet expectations.
The launch in the US would make it the second time TikTok has attempted to launch direct shopping outside of Asia. However, this time will be different, as TikTok is not doing it alone.
TikTok is set to partner with Los Angeles-based TalkShopLive to bring live shopping to the US.
TalkShopLive has four years of experience managing shopping 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. This is likely why there has been no official announcement yet.
There’s a huge incentive for TikTok to succeed in direct shopping, which is why we see the company continue to move forward in this endeavor.
While brands and influencers make money selling merchandise, TikTok earns a commission on every purchase. Gambling on live shopping has the potential to generate profits.
Direct shopping has been a huge success in China, with annual sales in the hundreds of billions, although Western consumers have not responded to it in the same way.
Meta is learning this firsthand, as it shut down Facebook Live Shopping at the beginning of October, saying consumers’ viewing habits were turning to short video.
TikTok’s short video market has already shut down. Now you want to be a leader in direct shopping.
With no direct shopping competitors on social media, there is perhaps no better time for TikTok to move into the US market.
What that means for companies remains to be seen. We don’t know if TikTok’s live shopping will be open to all interested companies or just limited brands.
We’ll likely learn more when TikTok finalizes the details and makes an official announcement.
Sources: financial times (1And 2And 3), meta
Featured image: Chaay_Tee/Shutterstock
