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HomeLatest NewsTikTok's plan to steal Amazon's market in the online commerce war

TikTok’s plan to steal Amazon’s market in the online commerce war

Date: June 19, 2024 Time: 13:58:24

TikTok, the fashionable social network seeks to remove that label and look face to face at the giants of the sector, taking advantage of its exponential growth. In Spain, its user base continued to grow at the same rate as its knowledge in society and it has already managed to enter the ‘top 5’ of the most used social networks in Spain according to IAB Spain. In terms of numbers, the Chinese entertainment platform broke all billing records in the sector after exceeding 80,000 million dollars in world sales in 2022. But it does not want to stop there and is already preparing its next evolution: TikTok Shop, its own platform sales with which they compete with the largest e-commerce corporations such as Amazon or Aliexpress.

The one from TikTok Shop to Spain would allow its users to display and sell all kinds of products through the application, taking advantage of the potential of its immense community of creators and the virtues of having everything integrated. “They plan to be Amazon. While the Meta universe has third parties that do the distribution, they will have their own logistics warehouses to distribute the products that are sold,” the expert and director of the TikTok vertical of the GO group told La Información Jamie Vargas.

Sales integrated into your application and without third parties

Its model differs significantly from the one implemented by one of its biggest competitors, Meta, for Facebook or Instagram. While these redirect to third-party websites, in-app purchases would be made on Tiktok, facilitating “a complete experience” and discovering “greater conversion and sales” for the seller, according to the platform on its website. It offers these a wide range of tools to promote their complementary products with data panels that allow them to know the performance of sales, customer reviews or transactions made.

The arrival in Spain of this tool has been rumored for months in the sector, but for now it is only available in several Asian markets (China, Hong Kong, Indonesia, Malaysia, Thailand, Vietnam, the Philippines and Singapore), the United States and the United Kingdom. “First it is tested in mature markets and then it will be brought to Spain,” says Vargas, who considers that the success of the business is, for the moment, in Asia.

The expert also believes that this move to direct distribution would be a natural evolution for TikTok: “It is considered an entertainment platform, they have people who spend hours in front of a screen and from there they compete with everything, using the platform to monetize and sell “.

New line of business

Although it predicts a smaller market share than the giant led by Jeff Bezos, the new tool would have a substantial difference compared to its competitor: “The power of all this is that you go to Amazon to buy what you need, but on TikTok you you find it. Step right into a moment of entertainment.”

This value will allow, in an expert’s opinion, to open a completely new line of business for the company but without expanding its fan base. “They already exceed new user milestones each month for their content offer, but they will be able to consolidate them.”

However, the expansion of this business branch to other European geographies would have remained up in the air, according to the Financial Times, after the company’s management has relocated the teams in charge of its development in different countries, transferring them to those markets where if the platform is open.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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