StartArticlesTikTok Shop: brands and sellers must adapt to the new times – and quickly!

TikTok Shop: brands and sellers must adapt to the new times – and quickly!

Social Commerce is a growing trend that is revolutionizing the way products and services are sold online. A new business trend originating in China and heavily accelerated by the pandemic, it now has at its "eye of the hurricane" the 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 which finally arrives in Brazil this April.

TikTok Shop leverages the impulsive behavior of the new generation of digital consumers who seek instant gratification.According to research in different markets, such as the American, British, and Asian markets, TikTok users are highly likely to make purchases directly within the app due to the combination of entertainment, social interaction, and ease of shopping in the same place, in a completely frictionless journey that allows consumers to fulfill their desires without needing to leave the platform.

One of the main advantages of this new business model introduced by TikTok Shop is the short video format characteristic of the platform, integrated with the online store, which not only quickly captures attention but also drives impulse purchases. The platform allows creators and brands to directly integrate links to products displayed in videos, quickly turning interest into real conversion.

As I recently shared in interviews with some specialized television news outlets, TikTok Shop has seen a significant increase in sales conversions compared to other traditional forms of e-commerce, potentially reaching up to 10 times more results. This occurs especially due to the emotional connection that users develop with influencers and organically generated content, which increases trust and credibility in the promoted products – not to mention the quickness of purchasing through the app, boosting impulsive buying desire.

Another important factor for the success of TikTok Shop is the user experience, highly optimized for mobile.In a scenario where every second counts to capture the consumer's attention, the smoothness of navigation and the simplicity of the integrated checkout are crucial to reducing cart abandonment rates.

TikTok beyond being a video platform

TikTok has long transcended its origin as a short video and dance platform. Today, it is a phenomenon that redefines the intersection between entertainment and commerce, driven by the attention economy — a scenario where time spent on social media directly translates into business opportunities.In markets like the United States and Indonesia, TikTok Shop moved $33 billion in 2024, a figure that illustrates the power of this new frontier of social commerce. In Brazil, where users spend more than 30 hours per month on the app, its arrival promises to shake up the e-commerce market, whichcan generate almost R$ 39 billionin the national territory until 2028 (according to a study released by Banco Santander).

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

E-commerce accounts for 13% of global retail, and social commerce, driven by influencers and immersive content, is the next wave – powered by the effective application of artificial intelligence in hyper-personalization. So, when the user watches a live stream of a creator testing a beauty product, the purchase can be completed in seconds without leaving the app. This eliminates friction and boosts impulse sales, which are the heart of retail.

The platform operates in countries such as the USA, the United Kingdom, China, Mexico, and Indonesia, where integrated features—such as purchase icons in videos, product showcases, and live broadcasts—simplify the consumer's journey. In Indonesia, for example, 9 out of the 10 largest TikTok Shop stores in 2024 were in beauty and personal care, a segment that also dominated the highest-grossing live streams in the USA. TikTok's strategy includes aggressive incentives to attract sellers, such as 90-day commission-free periods 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 company, professor and specialist in business, digital transformation and customer experience and co-author of the best-sellers "Inquietos por Natureza" and "Você Brilha Quando Vive sua Verdade" (both from Editora Gente, 2023)
RELATED ARTICLES

LEAVE A RESPONSE

Please enter your comment!
Please enter your name here

- Advertisement -

RECENT

MOST POPULAR

[elfsight_cookie_consent id="1"]