TikTok Shopping Updates: New Partnerships, Live Shopping & Ads

TikTok Intensifies Focus on E-commerce Capabilities

TikTok is significantly increasing its investment in the realm of e-commerce. The video-centric platform recently initiated a pilot program for TikTok Shopping in the United States, the United Kingdom, and Canada. This initiative was launched in collaboration with Shopify.

Partnerships and Integrations

The collaboration with Shopify enabled merchants utilizing a TikTok For Business account to incorporate a dedicated Shopping tab into their TikTok profiles. Furthermore, it facilitated the synchronization of product catalogs with the application, effectively creating miniature online storefronts. Now, TikTok is announcing additional brand partnerships for TikTok Shopping, including Square, Ecwid, and PrestaShop, with Wix, SHOPLINE, OpenCart, and BASE slated to join soon.

Alongside these partnerships, TikTok is introducing a comprehensive range of solutions designed to enhance TikTok commerce. These include new advertising products and, planned for later this year, a TikTok Shopping API.

Commerce Popularity on TikTok

The company unveiled its expanded plans for TikTok Shopping during an online event known as TikTok World on Tuesday. During the event, TikTok highlighted the growing popularity of commerce on its platform.

For instance, the hashtag #TikTokMadeMeBuyIt – used by users to share products discovered through TikTok videos – has amassed 4.6 billion views and continues to grow. TikTok also emphasized its ability to convert product awareness into actual purchases, asserting that TikTok users are 1.7 times more likely to buy products through the app compared to users of competitor platforms, according to an August 2021 survey by Material.

Two Approaches to Merchant Integration

TikTok offers two distinct methods for collaborating with online merchants. The first involves a direct integration and a full-service shopping solution where TikTok manages all aspects, from shipping to fulfillment and point-of-sale transactions. This system has been undergoing testing in Indonesia and is now also available in the U.K.

The second approach centers on partnerships with third-party commerce providers, such as Shopify, which equip sellers with essential backend tools and support systems.

Future Developments: TikTok Shopping API

TikTok intends to launch a TikTok Shopping API later in the year. This API will enable businesses to seamlessly integrate their product catalogs directly into TikTok, with the eventual goal of incorporating these products into organic content.

New Tools for Businesses

In the interim, TikTok is providing businesses with several tools to showcase their products to consumers.

Product Links, initially introduced with the TikTok Shopping pilot, allow brands to feature one or more products directly within organic TikTok videos. These links direct users to product detail pages on the brand’s website, functioning similarly to product tags and stickers on platforms like Instagram.

The new LIVE shopping feature empowers brands on TikTok to engage with their community in real-time. They can share dynamic links to products and services during live streams. Walmart previously participated as a pilot partner for this feature.

In-Feed Ad Products

TikTok now offers three in-feed ad products specifically designed for online shopping: Collection Ads, Dynamic Showcase Ads (DSAs), and Lead Generation.

Collection Ads are a new ad format that allows brands to include customizable, swipeable product cards within their in-feed videos. Each card can showcase a different product, and tapping a card leads users to a fast-loading instant gallery page where they can browse and purchase items. These ads are useful for promoting limited-time offers, seasonal sales, and new product launches. Princess Polly, a brand utilizing this ad type, reported a 6x return on ad spend and a greater than 50% increase in overall product page visits.

Dynamic Showcase Ads enable brands to promote a vast number of product SKUs – potentially thousands or even millions – through personalized video ads. DSAs generate video ads targeted at specific audiences based on their interests and commerce activities, such as items added to a cart or products viewed. TikTok has developed DSA templates adhering to the platform’s creative guidelines, incorporating music and text overlays. Initial DSA tests suggest these templates are driving higher click-through and conversion rates, though specific metrics haven’t been disclosed. TikTok has partnered with SHAKR, Productsup, and feedonomics to facilitate product catalog integration.

Lead Generation continues to be available within in-feed video ads, providing brands with a straightforward method to collect information from TikTok users through online forms. These ads are particularly effective for businesses with longer sales cycles, such as those in the audio and education sectors. TikTok has also collaborated with Zapier and LeadsBridge to automate the connection between a brand’s CRM and TikTok for lead-generation campaigns. A test with Lazada, a Southeast Asian marketplace, revealed that nearly half of the users who completed a form during the first week of a lead-gen campaign ultimately began selling on the marketplace.

TikTok Shopping: A Comprehensive Suite

Collectively, these solutions constitute the complete TikTok Shopping ecosystem.

“The future of commerce on TikTok is a shopping experience that allows brands of all sizes to tap into the enthusiasm of our user base,” stated Javier Irigoyen, TikTok Shopping Head of Product. “The magic of TikTok happens in the For You page, where e-commerce content is recommended to our users in the same way as short videos and live streams. TikTok is a place where users and brands can connect directly, and where an end-to-end shopping experience can happen organically. That’s the basis on which we’re building a long-term commerce division,” he added.