Social media platforms like Instagram, TikTok, and Twitter are known for exploring every potential avenue for monetization. All these platforms rely on ads, while some of them paywall features to make profits. TikTok, in particular, reportedly plans to experiment with another monetization strategy for its customers in the US. The platform could soon sport a new feature called TikTok Shop, so users of the short video sharing platform can purchase products directly in the app while watching live streams.
TikTok Shop isn’t a new concept for the platform. It is already available on TikTok’s sister app in China, called Douyin. The feature enabling purchases during live broadcasts is available in Thailand, Malaysia, Vietnam, Singapore, Indonesia, the Philippines, and the UK. The Financial Times reports that from nine million e-commerce broadcasts every month, Douyin sold a whopping 10 billion products between May 2021 and May 2022.
Technologically, TikTok may be partnering with American firm TalkShopLive to make TikTok Shop a reality in the US. The report says talks between partners are underway, and no documents or agreements have been inked yet. This would be TikTok Shop’s first expansion outside Asian markets, excluding the experiment in the UK.
TikTok didn’t deny the possibility of bringing live shopping features to the US. In an ambiguous statement, TikTok told the Financial Times that the company remains open to experimentation guided by demand around the world. TikTok added these efforts could include offering a seamless e-commerce experience for merchants associated with TikTok.
The company reportedly planned to expand shopping features across Europe earlier this year. However, insiders report the experiment failed because the UK market didn’t achieve the targeted sales and influencers dropped out of the scheme. TikTok is yet to announce Shop in the US formally, and until that happens, it is difficult to say if the platform will make US-specific changes to the virtual shopping experience based on learnings from failures in the UK.
