HomeArticlesTikTok Shop: brands and sellers must adapt to the new times - fast!

TikTok Shop: brands and sellers must adapt to the new times - fast!

Social Commerce is a growing trend that is revolutionizing the way products and services are sold online. New business strand originated in China and strongly accelerated by the pandemic, it now has in its “hide of hurricane” revolution brought by TikTok Shop, a platform that has shown great potential in several countries to boost sales through deep, native integration between content and online shopping, and that finally arrives in Brazil this April.

TikTok Shop takes advantage of the immediate behavior of the new generation of digital consumers who seek instant gratification. According to research in different markets, such as American, British and Asian, TikTok users are highly likely to buy directly within the application due to the combination of entertainment, social interaction and ease of purchase in the same place, in an absolutely frictionless journey and that allows you to realize the desire for consumption without the need to leave the platform.

One of the great differentials of this new business model brought by TikTok Shop is the short video format characteristic of the platform and integrated with the virtual store that, in addition to quickly capturing attention, also drives impulse buying. The platform allows creators and brands to directly integrate links to products displayed in the videos, quickly transforming interest into real conversion.

As I recently shared in interviews with some specialized television news, the TikTok Shop recorded a significant increase in sales conversions when compared to other traditional forms of e-commerce, which can reach 10x more results. This is especially the emotional connection that users develop with influencers and organically generated content, which increases trust and credibility in the products promoted without counting the speed to purchase in the app, leveraging the desire to buy on impulse.

Another important factor for the success of the TikTok Shop is the user experience, highly optimized for mobile. In a scenario where every second counts to grab consumer attention, the fluidity of navigation and the simplicity of integrated checkout are crucial to reduce the abandonment rate of carts.

TikTok beyond a video platform

TikTok has long transcended its origin as a platform for short videos and dances. Today, it is a phenomenon that redefines the intersection between entertainment and commerce, driven by the economy of attention 60 billion A scenario in which time spent on social networks directly converts into business opportunities.In markets such as the United States and Indonesia, TikTok Shopmovimento US$ 33 billion in 2024, a figure that illustrates the power of this new frontier of social commerce. In Brazil, where users spend more than 30 hours monthly on the application, its arrival promises to shake up the e-commerce market, which promises to shake up the market it can generate almost R$ 39 billion in the national territory until 2028 (according to a study released by Santander bank).

The rise of TikTok Shop is intrinsically linked to the change in consumer behavior.We live in the era where attention is the most valuable asset, and platforms that manage to capture it 'like TikTok, with its precisely tuned algorithm 'Get to become natural vectors of sales. 

E-commerce represents 13% of global retail, and social commerce, driven by influencers and immersive content, is the next wave IS ENHANCED by the effective application of artificial intelligence in hyperpersonalization. Thus, when the user watches a live of a creator testing a beauty product, the purchase can be completed in seconds, without leaving the application. This eliminates friction and enhances impulse sales, which are the heart of retail.

The platform operates in countries such as the USA, UK, China, Mexico and Indonesia, where integrated features such as shopping icons on videos, product showcases and live broadcasts (simplify the consumer journey. In Indonesia, for example, 9 of the 10 largest TikTok Shop stores in 2024 were beauty and personal care, a segment that also dominated the highest-grossing lives in the US. The TikTok strategy includes aggressive incentives to attract sellers, such as 90-day periods without commissions and free shipping, tactics that may be replicated in Brazil to accelerate adoption.

Fernando Moulin
Fernando Moulin
Fernando Moulin is a partner at Sponsorb, a boutique business performance firm, a professor, and a specialist in business, digital transformation, and customer experience. He is also the co-author of the best-sellers "Inquietos por Natureza" ("Restless by Nature") and "Você Brilha Quando Vive sua Verdade" ("You Shine When You Live Your Truth") (both published by Editora Gente, 2023).
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