TikTok Shop as the new E-commerce Platform

As the world becomes more digital, the internet users use their mobile phones to purchase goods or services via online has increased dramatically. Shopee, Lazada or even Mudah.my are widely used for online shopping nowadays. With so many people doing online shopping, TikTok has introduced TikTok Shop as an E-commerce solution that provides a platform which brings together online creators, sellers and buyers under one roof. With the launch of TikTok Shop, they aim to help local small and medium businesses (SMEs) that have yet to establish a physical store due to high initial investment cost and those who are affected by covid-19.

 

TikTok is a platform where people enjoy doing a lot of short clip videos and content such as dancing, sharing tips, traveling, food hunting, singing, daily life and more where it can increase exposure and go viral easily. And aside from that, many users on TikTok share things that they bought online or in store as well and it has becoming a trend like #racuntiktok, #racunshopee, #shopeecheck and #TikTokMadeMeBuyIt where other users or buyers will be fascinated to check out the items. They would normally share the link of the item on the comment section or on their bio to those who show interest. Now with the TikTok Shop feature, users can easily sell and shop directly on TikTok!

 

Here are some benefits of TikTok Shop for creators, sellers and buyers:

 

 

Great Exposure for SMEs

 

It is proven that people tend to be on screen for a long period of time and TikTok users spend an average of 52 minutes per day on the platform. The app is growing like crazy with people continuously creating new content and trends every single day which makes it easier for TikTok to promote the TikTok Shop. As we know, TikTok is easily accessible and a great app in terms of engaging creators and sellers, directly giving a good exposure for small and medium businesses (SMEs) who began to tame this new e-commerce platform. As a business owner, it is good to have numerous sales channels rather than relying on one sales channel.

 

Hence it is important for your social media management. This new TikTok Shop is definitely giving great publicity to new or existing SMEs. Sellers who post about their products have high possibilities for their video to get a good interaction with users and appear on others ‘FYP’ no matter how much their followers count. Not to mention how convenient it is for buyers because they can purchase the goods directly through TikTok without having to leave the app.

 

 

Product Showcase Through Livestream

 

Buyers usually would survey and see the products they want to purchase in a form of pictures and it can sometimes be unclear about the material used or misleading information about the size of the products. This can lead to unsatisfied purchases and buyers will have an unpleasant experience with online shopping. Now, TikTok Shop has a feature where sellers can do a showcase of products via livestream and in-feed videos on their TikTok profile page. Watching sellers showing their products on livestream is a great way to convince buyers about the product details.

 

Apart from getting service from the store, TikTok Shop is also a good platform where sellers can actually interact with buyers on livestream while selling their products. From the interaction, it can create a good bond between both parties in the long term. Buyers will feel more confident and at ease when they purchase goods from online. This is the charm of using TikTok Shop where creators and sellers have the advantage of expanding their brands, business and sales to another level.

 

 

From Creator to Founder

 

TikTok Shop is not only for the SMEs but it can be for anyone who would want to start a business or already own one. For instance, this new feature would surely give an extensive opportunity to the drop shippers or agents who are looking for an extra income as they are able to find potential new customers. Normally, we would see drop shippers and agents use other social media platform such as Instagram and Twitter to attract customers but looking at how a video can get a high engagement in less than 24 hours, most of them has grab the chance to use TikTok Shop as one of their channel to market their service and products. Also, an influencer or content creator can make use of TikTok Shop to start a business as well. We can take an example from a new local brand called “HYGR” that is owned by a famous content creator on TikTok, Ivor Lim Xian Z together with her partner, Chew Hong Meng.

 

Many people found out about HYGR on TikTok first as they produce a lot of videos and gain a higher engagement there compared to other platforms. According to the interview, they mentioned that half of their sales come from their marketing strategy on TikTok and it shows that TikTok is a platform to effectively increase brand awareness. Fast forward, HYGR also uses TikTok Shop now as one of the channels where customers can purchase their products. This can be a good inspiration for people who have been wanting to start a business.

 

Zero Commission Fee

 

Commission is a fee that the seller pays to the e-commerce platform provider. All e-commerce platforms require a commission fee from sellers and since Shopee commission fee has incurred up to 6% recently, many sellers feel burdened and try to find other sales channels as a backup plan. That is when TikTok Shop draws attention from the users and sellers by initiating a zero commission fee and they only charge 1% payment service fee for the merchant. Therefore, it automatically attracts sellers to venture into this new e-commerce platform and help to increase seller’s orders and sales at the same time. Thanks to TikTok Shop, existing buyers can get up to six free shipping vouchers per month, and new buyers will get an extra voucher just for choosing TikTok Shop. It is a great chance for sellers to fully utilize this platform to push and expand their brand.

 

 

Conclusion

 

As digital technology continuously changes and has affected the world, business owners and sellers need to optimize their digital marketing that is provided to help business growth and increase the sales. In outline, running your own brand is a good business and TikTok Shop is giving users great opportunities to expand their brand extensively for sellers and even new owners or creators who want to start-up their own business. 

 

Use this new feature to create brand awareness with Tinker now!