It’s no secret that TikTok is on the rise, and there don’t appear to be any signs of stopping it. According to App Annie, the average time that US and UK users spend on TikTok is now higher than YouTube as Gen Z’ers continue to shift their preference to the platform. It’s fair to say that some brands and businesses have only dipped their toes into TikTok, perhaps seeing it as a Covid-19 novelty app rather than a valuable business tool.
However, if you consider a 17% engagement rate with micro-influencer content compared to only 3% on Instagram, it’s clear that there is a viable case for investing time in TikTok.
#DidYouKnow that TikTok’s average engagement rate is 17.5% vs Instagram’s 4.4%? And interestingly, top accounts on Instagram actually see a decline in engagement with a greater follower base, but this is the complete opposite with TikTok. ? pic.twitter.com/sUjk011CQB
— thepullagency (@ThePullAgency) June 24, 2021
In August 2021, TikTok announced that users could shop directly on the platform after entering a partnership with the popular e-commerce provider Shopify. By adding a shopping option to the platform, TikTok is starting to place itself at the centre of social content and commerce. Facebook and Instagram both offer similar integrations with Shopify, which continue to grow as consumers flock online since the start of the pandemic.
What is TikTok Shopping?
The shopping tab is a dedicated section within a TikTok for a business profile with a scrollable product list taken directly from a Shopify store. Merchants can link directly to a product in their TikTok posts. For now, it is available in the US, Canada, and the UK and requires uses to have both a TikTok Business account as well as a Shopify store.
Users no longer need to navigate away from TikTok to purchase products from the creator. They can easily navigate to the online store and checkout. The creators can also tag products in organic TikTok content using dedicated product links.
Beauty brands are among the early adopters, with the products being a natural fit for TikTok. Kitsch, Hero Cosmetics, Youth to the People, Rare Beauty and Item Beauty have all added the shopping tab to their accounts. Kylie Cosmetics, from Kylie Jenner, was the first celebrity brand to jump on board. In an interview, she said;
“I built my business on social media: it’s where my fans go first to look for what’s new from Kylie Cosmetics.”
Source: Glossy
There are also plenty of TikTok for Shopify features that you can leverage to increase sales. These are features within the Shopify app that enhance your social media campaigns.
- Video template tool – creating video ads using a TikTok template
- Audience targeting – target TikTok ads based on different demographics
- One-click pixel – tracking TikTok campaign performance
- Creative tools – turning Shopify merchant products into high-quality TikToks
It’s worth testing these features to see what works for your business.
Why you need to start selling on TikTok
Glow Recipe is one of the TikTok Shopping pioneers and was part of the beta program in April 2021. The beauty brand reports that 90% of commerce sales on TikTok are from first-time customers. After working with influencer Mikayla Nogueira in March 2021, Glow Recipe saw a 600% spike in sales, more than they got on Black Friday.
The takeaway here is that bringing your brand to TikTok gives you visibility to millions of new users worldwide. These audiences are not just low-income teenagers, as many might speculate, but people with real buying power. The Gen Z and Millennial generations wield around $350 billion of spending power in the US alone.
Unlike other social media platforms, the TikTok algorithm means that users don’t need to have a lot of followers or a posting history to go viral. When a video is uploaded to TikTok, it is shown to a subset of users who may or may not already follow the creator. Those who see it on their “For You” page will have a set of behaviors that suggest they are likely to engage with the video. If they watch the video, it is then shared with others who share their interests and so on. If the positive feedback loop continues, the video can go viral.
TikTok rewards users with rich and relevant content. If you can integrate products into that strategy, TikTok Shopping could be a significant revenue driver for your business.
From a customer experience point of view, integrating your Shopify catalogue with TikTok means consumers can complete their journey in a single app. Everything is much smoother and leads to satisfied customers who are more likely to return to your store.
What’s next?
TikTok Shopping will continue to roll out to more regions in the coming months. The partnership with Shopify is making social commerce more accessible than ever and is set to launch a new era of entrepreneurship on TikTok. Plenty of brands have joined the bandwagon, and the take-up is growing by the week.
It’s time to stop looking at TikTok as a fun novelty and recognize it is a valuable e-commerce tool for business growth.
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