Social network firm TikTok has said it would be going into the e-commerce industry. The decision was taken as rivals have taken advantage of the industry to get more revenue.
TikTok to invest in E-commerce business
Social network giant TikTok has revealed plans that it is planning to develop some tools which will aid its users to monetize their presence on their app.
It says the focus will be mainly on social commerce, according to a report from industry sources. The social commerce sector is a crucial feature of Douyin, TikTok Chinese rivalry, and a feature TikTok has been toying with for some time. However, it seems TikTok could bring this to the mainstream.
They are not the only ones engaging in social e-commerce businesses, like other social networks, like Twitter, Facebook, and Instagram, have invested heavily into the new social media features. Moreover, Snapchat is also experimenting with e-commerce before the second quarter of 2021.
The Chinese market could help TikTok business adventure
TikTok will have an edge, though, because it has a Chinese parent firm. With the immense popularity of e-commerce in China, with about $435 billion in the Chinese e-commerce sector. A research company has said that it expects the US to rake in sales on most social media platforms in the tune of about $37 billion alone this year due to lockdown protocols.
The number of individuals buying products via social networks will increase from 75 million to over 120 million by 2022. Though it is unlikely that the US will reach a wider audience like China, there is expected to be a better improvement in the e-commerce sector in America.
TikTok is likely to have a working model for e-commerce already, looking at the success it has with Douyin. It is already working with various affiliate marketers, which will allow them to make money more profits on their platform.