TikTok Shopify Partnership & Shopping Launch - US, UK, Canada

TikTok Enhances E-commerce Capabilities Through Shopify Integration

TikTok is making significant strides into the realm of e-commerce. The company recently announced a broadened collaboration with Shopify, alongside the initiation of a pilot program for TikTok Shopping. This test phase will involve select Shopify merchants located in the United States, the United Kingdom, and Canada in the coming weeks.

Initial Partnership and Expansion

The social video platform initially revealed its intentions to partner with Shopify last October. This collaboration introduced new tools enabling Shopify merchants to efficiently create, manage, and optimize their TikTok marketing initiatives directly from their Shopify dashboard.

The current expansion of this agreement represents a further advancement. Soon, Shopify merchants possessing a TikTok For Business account will gain the ability to incorporate a dedicated “Shopping” tab into their TikTok profiles.

Mini-Storefronts and Product Catalogs

This new feature will allow merchants to synchronize their product catalogs, effectively establishing mini-storefronts directly on their profile pages. This streamlines the shopping experience for users.

Kylie Jenner is among the first to adopt this service, utilizing it for her Kylie Cosmetics brand. Products will be directly available for purchase within TikTok.

Product Tagging and Direct Links

The pilot program is also underway with other Shopify merchants in the U.S. and U.K., with a planned rollout to Canada in the near future. Merchants interested in participating can submit a request through Shopify’s dedicated TikTok channel.

Furthermore, the partnership introduces product links for Shopify merchants. These links can be used to tag products featured in TikTok videos.

This allows TikTok users to click on tagged products and be redirected to the merchant’s storefront for a seamless checkout process.

Industry Reaction and Creator Economy

“Creators are paving the way for a new kind of entrepreneurship where content, community, and commerce are key,” stated Harley Finkelstein, President of Shopify. “By enabling new in-app shopping experiences and product discovery on TikTok for the first time, Shopify is powering the creator economy on one of the fastest-growing social and entertainment platforms in the world.”

He further added, “We are excited to help this next generation of entrepreneurs connect with their audiences in more ways—and with TikTok as a visionary partner.”

Growing Demand for TikTok Integration

Shopify reports a substantial increase in merchant demand for TikTok integration. Installs across Shopify’s social commerce channels rose by 76% between February 2020 and February 2021.

Evolution of TikTok’s E-commerce Features

TikTok has been progressively developing its e-commerce functionalities over time. This includes the 2019 launch of the Hashtag Challenge Plus, which incorporated a shoppable element into hashtags.

Brands like Levi’s have also utilized TikTok’s “Shop Now” buttons, enabling consumers to make purchases through links posted on the platform. Additionally, Walmart has begun leveraging TikTok for livestreamed shopping events.

Future Expansion and Competitive Landscape

Earlier this year, reports indicated that TikTok was preparing a significant expansion into e-commerce within the U.S. in 2021. This included features like product link sharing, a commission program, and livestreamed shopping, all aimed at competing with Facebook.

Tests of in-app shopping have already commenced with select brands in Europe.

TikTok’s ultimate objective with shoppable content is to challenge the dominance of platforms like Facebook and Instagram, which have also been heavily investing in online shopping features.

Checkout Process and Key Differences

However, a key distinction lies in the checkout process. With TikTok Shopping, the checkout is facilitated through Shopify. Clicking a storefront or product link directs the user to the merchant’s website to complete the purchase.

Shopify then manages the transaction and payment processing. In contrast, Instagram Shop allows for checkout directly within the app, utilizing Facebook Pay for transactions, potentially offering a more streamlined user experience.

TikTok plans to pilot these new shopping solutions with hundreds of Shopify merchants before a wider public launch.