TikTok Shop: the New E-Commerce Platform for Gen Z

September 29, 2023
Marit Zwerk
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Have you been curious over the past month about why everyone at the office has been talking about the Roman Empire? The answer is simple, TikTok.

Generation Z is dedicating an average of 1.5 hours each day to scrolling through TikTok, the massively popular social media platform. What sets TikTok apart isn’t just the time spent but also the significantly higher level of engagement compared to other social media platforms, making it the upcoming advertising platform. This exceptional level of engagement has sparked the interest of brands, compelling them to establish a presence on TikTok to attract more customers. What’s more, in recent weeks, just before Black Friday, TikTok has introduced a new shop feature. This feature enables businesses to directly market and sell their products to their customers. So, are you still doubting whether you should step into the TikTok game? We are here to tell you everything you need to know about TikTok advertising and what this feature means for you!

What is a TikTok shop?

TikTok Shop represents a transformative shift within the TikTok platform, offering a new approach to connecting businesses with their potential customers. What was once primarily a fun social media platform, where new trends seemed to emerge daily, has now evolved into an e-commerce hub competing with, for example, Amazon. This development allows brands to establish their virtual stores within the app. This, in turn, streamlines the purchasing process, making it incredibly convenient for users to make a purchase with just a simple click.

What does TikTok Shop look like?

This new feature offers three distinctive ways to explore the products of brands:

Live Shopping: Through live sessions of creators, users can tap pinned products or the shopping basket icon to make direct purchases of their favourite items.
Shoppable Videos: allows users to shop from in-feed videos by tapping on product links and the basket icon.
Product Showcase: Explore and shop from brands or creator accounts, accessing a wide range of products within the app.

These user-friendly shopping methods provide an engaging shopping experience on TikTok without having a third party involved or having to visit the website.

Source: TikTok Shop

What is a TikTok shop?

Over the past year, TikTok has established itself as the upcoming social media platform with 1 billion monthly active users. To put that into perspective, Instagram, currently has 1.4 billion users, while Twitter, now known as ‘X’, in comparison with 300 million. TikTok is not just a platform for Gen Z, the age category of 25-34 is part of 31% of the audience. But TikTok’s allure isn’t specific to entertainment alone. TikTok is also popular as a search engine: nearly 40% of Gen Z prefers searching for information on TikTok over Google. The platform is recognized for having immense potential for businesses looking for authentic connections with a highly-engaged audience. Advertising on TikTok has immense potential as TikTok is now an appealing channel for businesses to reach their target audience.

Why you should consider advertising on TikTok?

TikTok is not a platform anymore where people would only post videos of them dancing. This social media platform has some great advantages compared to other platforms such as Facebook, LinkedIn and Pinterest.

Engagement: Of all social media platforms, TikTok is the one with on average the highest engagement rate. Based on the algorithm, users view videos highly aligning with their interests, unlike other platforms.
Growing user base: In 2023, TikTok had 1.7 billion users, up 17% from the year before making it the most promising platform for next year as well.
Direct sales potential: Recent research shows that approximately 67% of users say that TikTok encourages them to shop even when that was not their intended goal when using the app. Take for example the hashtag, #TikTokMadeMeBuyIt. Advertising on TikTok can thus be profitable for your business, as the new feature also makes it easier for users to shop items.

Nonetheless, the choice of advertising platform should align with your target audience and campaign objectives. However, it’s crucial to not underestimate TikTok’s potential, especially now when it comes to executing impactful Black Friday campaigns.

New Black Friday Competitor

As we approach Black Friday, TikTok US executive Nico Le Bourgeois emphasised in an interview that Tiktok will be very present for Black Friday and Cyber Monday through a combination of traffic, free shipping and deals. Additionally, the new feature TikTok Shop will also be offering early Black Friday deals, competing with larger corporations like Amazon. By introducing the early Black Friday deals on TikTok Shop, the platform might have an advantage over other ecommerce platforms. This could mean that users will switch the search way from websites to app features like TikTok Shop. Besides, TikTok is uniquely positioned to capture the attention of Gen Z and millennial shoppers.

With November 24th approaching, now is the time to set up your campaign for Black Friday. Don’t miss the opportunity to explore TikTok’s new feature to target Gen Z and millennial shoppers for your brand.

Conclusion

In short, TikTok Shop has the potential to completely change how people find and buy things online. TikTok made a powerful strategic move to compete with Amazon. By providing discounts of up to 50% on items, TikTok hopes to draw customers and establish itself as a major player in the e-commerce sector. TikTok shop can be a great partner for your business; however, this feature can represent a reconsideration of strategy for the future.

Need help with your social media channels for Black Friday?

Do you want to know more about TikTok advertising or do you need assistance during the busiest marketing month of the year? Feel free to contact us. We’re happy to advise you.

Marit Zwerk

Holding a bachelor's degree in international business administration, complemented by a cultural immersion during an exchange program in Hong Kong, she went on to earn a master's degree in consumer marketing. Along the way, she garnered invaluable hands-on experience in SEA and social media. She is now keen on assisting clients in enhancing their digital marketing presence.