by By: Brynli Nelson
For those of us on TikTok, I think we’ve all experienced at least one TikTok Shop ad pop-up on our feed. Admittedly, I’ve fallen victim to these ads once or twice, purchasing a product in a video that I knew I didn’t need. But I mean who could turn down a 40% discount and free shipping on something that had previously sold out? Apparently not me. But does this come at a price?
The Rise of TikTok shop
TikTok Shop is an e-commerce feature located within the TikTok app. It resembles Instagram shopping, by using its algorithm to blend in-app entertainment and shopping.
TikTok shop first launched in the UK in 2021 and was then made available in other countries like France and Indonesia. It wasn’t until last September when it was made available in the US, that brands like Fenti Beauty, Nike, and even Chipotle entered the commerce space, further building its popularity.
Brand and Creator Opportunities
TikTok shop presents a great opportunity for both large and small brands to get more visibility. This is by allowing businesses to set up storefronts and sell their products through their pages, or other avenues.
Creating a TikTok Shop:
Sellers/businesses can set up a storefront on TikTok for free by following a few steps to apply. Once the application is approved, sellers can showcase their products in-app, free of subscription and listing fees.
Promoting Products:
Sellers can also showcase their products or collections through TikTok users’ promotional posts through paid partnerships, or TikTok’s Affiliate Program. This program allows people all over TikTok to promote products and earn sales commissions by posting content like videos or livestreams, with shoppable tags. Even though TikTok also gets a commission from these sales, it’s a good way to boost a new brand or product. I’ve seen so many small brands skyrocket in popularity just from product review videos.
https://www.tiktok.com/t/ZT8c45CJc/
These videos are often found on the ‘Shop Tab’, or through ‘Shop Ads’ that sellers pay to distribute their products throughout users’ ‘For You Pages’. If you like doing more of the “behind the scenes” promotional work, you can also apply to be a TikTokShop Partner, which provides e-commerce or marketing support to sellers or creators.
Problems and Controversies
Discounts:
As mentioned before, TikTok Shop’s discounts are largely what they’re known for. TikTok offers various coupons to new buyers for discounts and free shipping and will place discounts on products, even those that are higher-end. While this has increased purchases, it’s also left sellers concerned about their profit margins, wondering when/if they will be reimbursed for the discounts.
Counterfeit Items:
Some products, even without their discounts, appear to be a little too good to be true. While TikTok claims to regulate fake and counterfeit items, I’ve seen my fair share of dupes and name-brand products priced very low by various third-party sellers. We’ve seen this in cases like the COSRX snail mucin, a viral skincare product, that was sold for as little as $5 a bottle (less than half of its original price) on TikTok. One seller sold 37,000 bottles, according to the listing. Many users claimed that the products were fake, and even posted videos showing how to distinguish real snail slime from counterfeit. Whether it was counterfeit or not, this did raise more questions about TikTok Shop’s other products.
With every digital platform comes its challenges. But do they outweigh the benefits? That’s for you to decide. Either way, just try to avoid purchasing products that seem too good to be true, especially if it’s $5 snail slime.
Great post, Brynli. I like that you brought up the legitness of the TikTok Shop. Ever since it has been on my feed (which has been FULL of ads now) I have questioned if the products are real or not. It is a bit concerning to me how they can make products SO inexpensive, so i think having this conversation is important. (Like where are the products coming from??)
Hi Brynli,
Your post provides a comprehensive overview of the rise of TikTok Shop and raises some important considerations regarding its impact on consumers and sellers alike. It’s fascinating to see how TikTok has seamlessly integrated entertainment and shopping, creating a unique e-commerce experience within the app. You’ve done a great job outlining the opportunities TikTok Shop presents for both large and small brands, as well as the various ways sellers can promote their products through partnerships. It’s clear that TikTok Shop has become a valuable platform for businesses to increase visibility and reach new customers.
Interesting post, Brynli. I really appreciated the breakdown of each section and how you clearly walked through the rise of the TikTok shop phenomenon. I had no idea about the snail slime skin product and the concept of dupes being sold. I agree that the TikTok shop is becoming overwhelming. It feels like it’s taken over my feed, with half of the content I watch every day being ads.