Links to external e-commerce websites will be blocked on TikTok
According to a recent article from The Information, TikTok intends to ban links to other e-commerce websites like Amazon. The action is perceived as a means through which the platform is forcing users to utilize its store to make a purchase of an item they see in the app.
According to the study, the platform store may lose more than $500 million in the United States this year as a result of its investments in delivery infrastructure, employment opportunities, and the support of businesses that provide free shipping and discounts.
The platform reportedly intends to stop authors from marketing products outside of its shop by preventing external e-commerce links.
It is unknown when exactly this prohibition was put into place, but once it does, TikTok users won't be able to buy promoted things from anywhere other than the platform's store.
Additionally, certain TikTok store links let users purchase items directly from videos, and some creators have TikTok storefronts integrated into their accounts, making this the sole method for the app to push purchases when the restriction is put into place.
The action is said to be a way for the platform to increase sales through its store, which is currently not receiving much interest.
"U.S. consumers are currently spending between $3m and $4m a day on TikTok, up from about half a million to $1m a day in June," the research claims. By the end of the year, the platform anticipates that this amount will surpass 10 million dollars.
Southeast Asia, where the platform shop has been accessible since 2021, is where it is more successful. In Southeast Asia, there are between $50 million and $60 million in daily sales. By the end of the year, the platform wants to raise this amount to roughly $90 million.
ByteDance wants TikTok to establish a global e-commerce company like its other platform, Douyin, whose goods sold for more over $200 billion last year.
According to the research, ByteDance anticipates TikTok to achieve comparable levels by 2028. ByteDance anticipates making between $40 billion and $60 billion in revenue from the United States out of the whole $200 billion.
TikTok is trying to draw merchants to its platform by having staff look at the Amazon products that are selling the best and then communicate with those merchants to urge them to open a store on TikTok without paying them any commissions for the first three months.
While TikTok is working to improve its store, the company also announced that it will stop using Shopify storefronts on September 12. This is because the company started using Shopify storefronts in 2021, when its e-commerce options in the United States were very limited, but after its store became available, it was no longer necessary. the stores on Shopify.
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