TikTok continues to grow around the world, but the business model is still being defined.
It’s true that there are ads, but not many. Publishing them is expensive, and the public is very young, with little purchasing power.
Now TikTok reports that it is looking for partners to launch its live shopping offering in the United States, something similar to what other social networks, such as Instagram, are already doing.
We read this in the Financial Times, where they indicate that TikTok is in talks with California-based TalkShopLive, which aims to offer the live shopping function that many have come to expect. For example, if someone posts a video wearing a costume, followers can buy that outfit.
The goal is for manufacturers and brands to be able to sell products via video. 10% of the paid money will go to TalkShopLive, however it is expected that during the first phase, TikTok will take care of all the commission so that the consumer can get a better price.
There is no signed agreement at the moment, but the way for Tiktok is clear. Last year it partnered with Shopify to allow business accounts to integrate their catalogs into a dedicated tab, and began testing a dedicated store feed with products sold by merchants.
This function was only tested in the United Kingdom a few months ago, and it is already working in Asia. Now the proposed targets are more concentrated in the United States and Germany.
While Instagram has admitted that its e-commerce system hasn’t been as successful as expected, TikTok has started betting heavily on the issue. I’m of the opinion that we’re talking about a very young public that can’t afford to buy clothes advertised by models on stage, but this wouldn’t be the first time I’ve been wrong.