Social media behemoth TikTok recently launched an online marketplace called TikTok Shop.
Now the company is upping the ante by promising discounts and subsidies of up to 50% for items purchased through the platform.
According to a recent report in Bloomberg, TikTok is seeking to go head-to-head with online marketplaces such as Amazon.com in time for the holiday blitz.
TikTok comes into the marketplace game with a captive base of users, including 150 million users in the US alone.
With estimates for online ordering in the US expected to reach $284 Billion this holiday season, it is no wonder TikTok is eager to play spoiler to rival online shops.
Bloomberg cites internal sources speculating that the company is seeking ways to outflank competition by offering deep discounts and subsidies to vendors in a blatant attempt to buy business.
TikTok offers a new paradigm for marketing called Shoppertainment where influencers can suggest products to their users.
Fully 50% of TikTok users have been “influenced” to purchase an item because of the recommendation of an influencer
Marketers realize this and top influencers with large user bases can make hundreds of thousands per post.
The announcement of the opening of TikTok Shop in the US allows influencers to tag items in live video streams that will allow users to go right to the vendor.
Brands can advertise items using sharable tiles in an online product showcase to make it easy for consumers to browse.
Affiliates and vendors can connect to create commission-based relationships on purchases made from their TikTok account.
And while it remains to be seen how much of a chunk of the market TikTok’s approach will have against the likes of Amazon, it is obvious with this latest announcement that are willing to buy their way in by helping consumers shave 50% off the cost of items by paying the vendors the other half.
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