Why TikTok Shops Might Be the Next Big Opportunity

Seems like everyone is trying to find the next big “It Factor” when it comes to positioning their brand’s offer, especially if they’re a retail business. Enter the TikTop Shop — one of the fastest-growing ecommerce platforms that is driving users to purchase products within TikTok.

As more and more people flock to TikTok every day, it’s becoming a goldmine for savvy business folks and marketers.

In this piece, we’ll dig into what TikTok Shops have to offer, and show why they could be the next big avenue for ecommerce shops to move their online inventory.

Yaniv Masjedi
CMO, Nextiva

Their expertise has helped Nextiva grow its brand and overall business

Amplify TikTok Sales

TikTok Shop: The Rise of Social Commerce

TikTok’s catchy and fun videos haven’t just won over millions of fans around the globe; they’ve also turned the app into a powerhouse for selling stuff directly to us, the viewers. Get this:

A whopping 33 million people were shopping on TikTok in 2023.

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That is practically 1 out of every 10 people in the U.S. hitting the “buy” button on their screens through this platform. That’s a huge chunk of Americans diving into what TikTok Shops have to offer.

Even though the speed at which TikTok’s shopping scene is growing has slowed down a bit, a ton of users are still making purchases, showing that people really are into buying through the app. It’s clear that TikTok’s not just a passing fad for online retail; it’s a serious player that’s keeping folks interested and opening their wallets.

Key Takeaway: The social network is trying everything it can to make TikTok Shops succeed, which means it is going to find ways to get people to purchase and/or sell on the platform. To that end, it’s going to be a seller’s market on TikTok while it’s still picking up steam.

TikTok Shop carousel

Related Reading: 6 Bite-Sized Social Media Marketing Strategies for All Major Platforms

Understanding Consumer Behavior on TikTok

Even if not everyone’s clicking “buy” on TikTok Shops, the app’s got a sneaky way of nudging us to shop:

TikTok stats

Ever found yourself buying something because you saw it on TikTok but ended up getting it somewhere else? That’s TikTok’s magic at work, showing us stuff we didn’t know we needed until we saw it in a video. It’s fast becoming more than just a place to shop. It’s a trendsetter, too.

Here’s how TikTok is quietly influencing our shopping habits:

  • Trend Setting: TikTok has emerged as a powerful platform for trendsetting, where viral content can quickly lead to increased interest and demand for products. Users often discover new items or brands through TikTok challenges, influencers, and user-generated content, which then drives them to seek out these products on e-commerce sites or physical stores.
  • Driving Demand: The platform’s unique algorithm amplifies content that resonates with users, often leading to sudden spikes in demand for specific products. This phenomenon, sometimes referred to as the “TikTok effect,” can result in items selling out quickly after being featured in popular videos. Even songs featured in TikTok videos can gain significant popularity and chart success as a result.
  • Shaping Buyer Behavior: Even if you aren’t shopping on the app, TikTok is changing the way we all think about what to buy and where to buy it. The platform’s emphasis on authenticity and creativity encourages brands to engage with potential customers in more relatable and innovative ways. Users increasingly expect brands to offer entertaining content, interactive shopping features (like AR try-ons), and community engagement.

The platform’s commitment to the success of TikTok Shops, coupled with the introduction of features like ads, live broadcasts, and affiliate selling, creates a conducive environment for businesses to thrive. Leveraging creators for their distribution power amplifies this effect, making TikTok Shops a potentially lucrative venture, possibly more so than traditional VC-backed startups.

Exploring the Opportunities on TikTok Shop

The trick to selling on this platform is making your product irresistible to the TikTok crowd. Thanks to the app’s mix of folks and the freedom to get creative, sellers have a playground to try out new ways to get people hooked and hit the “buy” button.

It’s worth mentioning, though, that TikTok Shops might not be the perfect fit for everyone. If your business is all about B2B or selling big-ticket items that usually need a chat or two before closing the deal, this might not be your arena. TikTok’s sweet spot is more about stuff that can be shown off and sold straight from your feed when people are scrolling on their phones.

Quick hits on why TikTok Shops rock:

  • Variety Is the Spice: From unique finds to classic products with a twist, if it can grab the TikTok audience, you’re in business.
  • Creative Freedom: The platform lets you experiment with how you market, so you can find fun, fresh ways to draw in buyers.
  • Know Thy Audience: It’s prime territory for consumer goods that can shine in short, snappy videos.

The success of a product on TikTok often indicates its potential performance on other social platforms like Snapchat, Instagram and Pinterest. Although each platform has its unique dynamics, the underlying principles of social commerce remain consistent.

Key Takeaway: Entrepreneurs can leverage this insight to extend their reach across multiple platforms, optimizing their strategies to cater to the specific audience of each platform, thereby maximizing their revenue potential.

The Future Is Now With TikTok Shops

TikTok is all about creators and shoppers coming together in a way that’s genuine and fun. That’s a big deal if you’re looking to sell online. Plus, it’s super easy to get started and you won’t lose much if things don’t pan out, making it perfect for anyone thinking of dipping their toes into the business world for the first time.

But if you really want to make waves with TikTok Shop, you’ve gotta play it smart. That means not just any product will do. It’s got to be something people love. Your videos need to grab attention, and the more you can use TikTok’s bells and whistles, the better.

TikTok Shop

Key Takeaways:

  • TikTok Shops represents a significant growth opportunity for businesses capable of leveraging the platform’s unique content and engagement model.
  • Understanding consumer behavior on TikTok is crucial for designing effective marketing strategies that lead to direct and indirect conversions.
  • Strategic use of TikTok’s features, such as ads, live broadcasts, and collaborations with creators, can significantly amplify a brand’s visibility and sales.
  • A multi-platform approach can enhance the success of a product, using TikTok’s insights to tailor strategies for other social media platforms.

If you’re ready to level up your brand’s social commerce presence, Single Grain’s TikTok ecommerce experts can help!👇

Amplify TikTok Sales

 

For more insights and lessons about marketing, check out our Marketing School podcast on YouTube.

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