TikTok Shop Evil Master Plan 👺
If you missed the news about TikTokShop start here
In a Nutshell:
TikTok is setting its sights high, aiming to recreate an Amazon-like business model through its burgeoning service, TikTok Shop. While the platform is slated to face a $500 million loss in the US, it’s all part of the company's bold strategy to strengthen its foothold in the e-commerce sector. 📈
TikTok’s Master Plan
TikTok, using its TikTok Shop, is on a mission to control the entire customer experience. It’s taking cues from Amazon’s empire, blending media, advertising, and commerce. Unlike Amazon, which began with commerce, TikTok is leveraging its stronghold in media and advertising to incorporate e-commerce seamlessly.
Key Moves
- Broadening Inventory 📦:
TikTok is zealously enhancing the range of products on TikTok Shop and pushing sellers to join the platform. - Saying Goodbye to Shopify Feature 🛑:
TikTok is discontinuing its “storefronts” feature next month, a feature that synced Shopify sellers’ products with TikTok. - Restricting External Links 🚫:
TikTok plans to eliminate links to other e-commerce sites, making TikTok Shop the exclusive buying platform for users.
The Vision
ByteDance, TikTok’s parent company, aspires to rival the astounding $200 billion merchandise volume attained by its Chinese version, Douyin. The expectation is to match this feat in the US by 2028 and achieve similar success globally. That’s a lofty ambition, almost doubling the revenues generated by Target last year!
TikTok's Big Black Friday Plan 🛍️:
They're planning to help sellers give big discounts, up to 50%!
Remember how Temu tried to get more US shoppers by spending more than they earned? TikTok is trying something similar.
They want to sell products worth $20 billion worldwide this year and hope the holiday sales will help them achieve that.
TikTok believes that if they help with Black Friday discounts, online stores might want to advertise more on TikTok. Some might even shift some of their advertising money from Twitter to try out TikTok.
TikTok's roadmap is more than clear; it’s aligning its strategies to create a holistic business model, much like Amazon... Are we more excited or scared?
Frenk