As you must be aware about the report we did last week that TikTok finally launched its much-anticipated e-commerce store in the US which is already live in other parts of the world such as Europe and Southeast Asia. With this launch, TikTok plans to bring as many customers to its store as possible because of the immense popularity of its platform in the US already. Basically, up until now, TikTok was losing all the traffic to Amazon and others because they were not selling the products from their shop. Now, with the launch of TikTok Shop, the company will directly sell the products in order to get maximum revenue and not just commissions from other vendors. This is also the reason why TikTok banned creators from linking to products from other e-commerce marketplaces such as Amazon and others.
Now, there is a new report regarding TikTok Shop and this is something we saw coming from miles away ever since the report about the launch of its e-commerce store came out. Basically, the report says that TikTok will go all out in promoting its Black Friday offers so much so that it will subsidize a lot of the deals so as to offer even more discounts compared to Amazon and others and gain as many customers as possible and build trust. Now, this is an obvious strategy and one that is being used by Amazon since many years now. We know that TikTok, with its big pockets, will spend as much as possible to lure customers away from Amazon on the biggest shopping season this Black Friday.
Bloomberg reports that a “TikTok spokesperson confirmed the plans, with official Black Friday deals starting at 8PM on November 23rd and deals for Cyber Monday running from November 28th to November 30th”. We know that offering incentives for people to shop from their store is not a strategy which will get them regular customers but they might not care as long as they are getting the sales because it being one of the biggest sale seasons can get them the margins they want for the rest of the year as well.