TikTok To Move Into Social Commerce Game, Partners With Shopify

Highlights:

• TikTok is investing in a social eCommerce platform with an announcement of a global partnership with Shopify.

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• The deal will help Shopify’s 1 million merchants to advertise their products to TikTok’s younger audience and drive sales.

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• Shopify merchants will be able to sell products in the form of shoppable ads whereas TikTok users can click on an ad to buy the tagged products.

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• All transactions will be executed via Shopify’s site.

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TikTok announced a global partnership with the Canadian eCommerce platform Shopify to help brands and merchants advertise their products through shoppable videos. Through the new partnership, Shopify’s one million merchants will be able to create and connect their TikTok For Business account and turn their existing imagery into videos for ‘shoppable ads’. Purchases are executed on the Shopify platform and hence the transaction data and customer data remain with the retailer than TikTok. 

Despite the White House executive order of the sale unknown, business operations for TikTok are as usual and continue to grow. This integration will help to create new avenues of income for TikTok creators apart from influencer partnerships. TikTok’s partnership with Shopify is a significant step by the video-sharing app to widen its nascent advertising ecosystem. 

Run It Using Shopify Dashboard

As per TikTok, through the new TikTok channel, Shopify merchants can access core functions of the TikTok For Business Ads Manager without leaving the Shopify dashboard. Highlights include:

 

Image Credit: Shopify

• New, “1-click” pixel: Shopify merchants can install or connect their TikTok Pixel with a click of a button, making it quicker and easier to track conversions.

• A One-Stop-Shop for TikTok Campaigns: Merchants can create campaigns, target audiences, and track performance in one place.

• Creative Made Simple: The ad tools enable Shopify merchants to create native, shareable content into in-feed video ads that resonate with the community. 

• Free Ad Credit: For enticement, eligible Shopify merchants can claim a $300 ad credit to jumpstart their first TikTok campaign.

 

Expansion Of Other Shopping Features

Blake Chandlee, Vice President, Global Business Solutions at TikTok said,

“As social commerce proliferates, retailers are recognizing that TikTok’s creative and highly engaged community sets it apart from other platforms. We’re constantly exploring new and innovative ways to connect brands with our users, and Shopify is the perfect partner to help us grow and expand our commerce capabilities globally.”

TikTok is planning to test new in-app features that will let users discover Shopify merchants’ products and shop them directly within the app. The new features could be similar to the product tags that TikTok has been testing with some brands. 

The two companies will collaborate to test new commerce features in the coming months. However, no financial details are revealed about the tie-up by the companies.

Satish Kanwar, VP of Product at Shopify said, 

“We’re thrilled to be the first partner to welcome TikTok to the world of commerce, particularly right now, as our merchants prepare for a busy online holiday shopping season.”

Will Walmart Be Able To Ink The Deal With TikTok?

Walmart has been interested in investing in TikTok to enhance its advertising strategy and enhance merchant traffic. However, the talks remain shrouded amidst political uncertainty. Even though the possible ban on TikTok is yet to go into effect, the collaboration between TikTok and Shopify might sign that it is not a major threat. For Shopify, the TikTok deal is more lucrative for the U.S markets.

TikTok has been steadily ramping its tools for merchants and brands in recent months. It introduced a self-serve advertising platform to help small businesses broader reach. It also debuted a marketing program with approved providers of advertising service to support brands in creating, executing, measuring, and boosting their ad campaigns. Meanwhile, in August it tested its first shoppable live stream with Ntwrk. TikTok has been trying to grow its revenue opportunities and advertiser base.

If it plays the cards the right way, TikTok can emerge as a powerful e-commerce engine. This is one of the main reasons for Walmart’s keen interest in buying a stake in the video-sharing app. As per Tik Tok, half of the users indicated that they discover new products through advertisements posted by a product or brand in the app. Such a high level of engagement is beneficial for merchants who are looking to reach the millennial generation whose spending power is high.

TikTok reports that the new channel for Shopify is now available in the US. It will become available in Europe and Southeast Asia in early 2021.