TikTok’s retail engine is accelerating, but are brands succeeding in driving sales?


It was the most downloaded app in 2021. It has over 1 billion monthly active users. And it is the third largest social network in the world.

TikTok has risen to the top faster than almost any other platform and its market dominance is unlaid groundwork for brands and retailers to build and strengthen customer relationships. As a destination for mobile-friendly video content – originally short formats but now also longer formats – TikTok has created an entirely new approach to marketing and selling to consumers.

What makes TikTok a retail powerhouse?

Creating ways to monetize user-generated content is the company’s forte – #TikTokMadeMeBuyIt has over 4.1 billion views. The app has grown in popularity overnight as a place for user entertainment or information, as well as inspiration, and TikTok has been quick to develop features that provide more advertising value and power. sales since.

TikTok purchases

To make the platform buyable, TikTok partnered with Shopify last year and launched in-app shopping capabilities in select marketplaces. When users discover products by scrolling through videos, they can click on a Shopping tab on the businesses’ TikTok profile. Businesses can either sell directly on TikTok in a native shopping experience where product management, shipping, billing, purchasing, and returns all take place directly on the platform, or use partner integrations to manage certain parts of the payment and post-payment process. outside the app. Not only does TikTok Shopping create more sales opportunities for brands and retailers, it also allows creators to earn a commission on their content through the TikTok Affiliate Program.

Dynamic TikTok Showcase Ads

TikTok launched Dynamic Showcase Ads in September 2021, which make it easier for brands and retailers to promote their products through personalized and targeted ads on the platform. Instead of starting from scratch or relying on fancy content creators, businesses can create ads from available templates that match the style of TikTok’s unique video format. Dynamic Showcase Ads pull data directly from product feeds to automatically generate engaging, relevant and desirable content for TikTok audiences. As long as product feeds are consistent and up-to-date, brands and retailers can deliver high-quality ads that lead to positive brand experiences and more sales.

TikTok Creator Marketplace API

Another step taken by TikTok to improve collaborations between content creators and businesses is the launch of TikTok Creator Marketplace API. The new API gives brands and retailers access to audience demographics, growth trends, top performing videos and campaign reports in real time. With this information, companies can better identify creators with the most influence in their target market to build smarter partnerships.

4 steps to boost sales on TikTok

Unfortunately, commercial anarchy has made all of this sales potential on TikTok nearly impossible to realize. With data silos and inefficiencies created by outdated and disconnected technology stacks, businesses are struggling to maintain the quality, consistent, and accurate product feeds that are needed to power successful TikTok campaigns.

However, product-to-consumer (P2C) management can help brands and retailers simplify the management of their product data on TikTok, as well as the hundreds of other marketing and sales channels where their customers spend time. Leveraging a solid P2C strategy, businesses can take the following four steps to deliver a compelling TikTok experience to consumers:

Choose the right products

TikTok users don’t want to be bombarded with ads. They expect to find products in a subtle and authentic way. This means brands and retailers need to be strategic about the products they place on the platform. Having clear visibility into campaign performance across the entire commerce ecosystem can help businesses identify which products drive the most conversions on TikTok.

Tailor-made content

TikTok content has a wide range, from dance videos and travel compilations to cooking tutorials and history lessons. This variety of content styles forces brands and retailers to customize their product information for each specific genre to ensure it is well received by users. Personalization of product data is also important for companies to connect appropriately with the right audiences. There is a misconception that TikTok is only used by younger generations, but only 70% of TikTok users are under 35. That means there’s still 30% of the population on TikTok who didn’t grow up with meme culture.

Maintain quality

The brand and product information people consume on TikTok should match the information they consume on other social platforms or retail marketplaces. Businesses need to streamline and automate how they update their product data across the commerce ecosystem to ensure their presence on TikTok is consistent with all other consumer touchpoints.

Adapt quickly

The top performing TikToks are all based on trends that go viral. It is important for companies to follow these trends, given 83% of consumers while browsing TikTok, seeing trending content prompted them to make a purchase. Brands and retailers that have an agile commerce approach, like P2C management, can quickly adapt their advertisements and product information with the latest trending TikToks to gain popularity.

Recognizing the relevance and power of influence of TikTok is not difficult. The hardest part is aligning technology stacks and taking control of business operations to take advantage of the platform’s sales and branding opportunities. But by prioritizing high-quality product information and implementing effective management processes like P2C management, brands and retailers can transform how they connect with consumers through the dominant video storytelling application.

For more information on how to increase sales on other social commerce platforms like Instagram, Snapchat, and Pinterest, download the Productsup Social Commerce Guide.

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