T-Tok Shop gnaws hard bones in the United States

11-23 2022

T-Tok has a ferocious momentum, punching Facebook on the social side, and kicking Google on the search side.

There is no doubt that T-Tok has grown into an important pole among the global multipolar giants.

T-Tok, which has a huge amount of traffic, is very concerned about the e-commerce business, after all, e-commerce is one of the best ways to monetize traffic.

To really gnaw a mouthful of e-commerce cake, just traffic is not enough, but also offline "hardware" cooperation, the four streams of information flow, business flow, capital flow, logistics collusion, in order to build a real e-commerce kingdom.

There is no doubt that localized logistics and distribution is a hard bone, and it is also a hard bone that must be gnawed.

Now, T-Tok Shop is ready to gnaw hard bones in the United States, planning to build a "fulfillment center" in the United States, to compete with Amazon.

According to media news such as The Verge and AXIOS in the United States, T-Tok recently released more than a dozen positions related to logistics and distribution on the LinkedIn.

The working address of these more than a dozen positions, including Seattle, United States and other places.

One of the positions required a fulfillment center in the U.S. "from scratch," while the other dozen jobs were "providing logistics solutions to the world."

T-Tok aims to provide warehousing, distribution and returns services for e-commerce sellers to "ensure the rapid and sustainable growth of T-Tok Shop".

Overall, T-Tok plans to create fulfillment centers similar to FBA centers, providing convenience to buyers while removing barriers to sales for sellers.

Although this is a test move, as the order volume of T-Tok Shop climbs, T-Tok will "clone" countless "FBA logistics centers".

At that time, T-Tok Shop will be a strong rival for Amazon.

  T-Tok He has always been ambitious in e-commerce and has been diligent in building a huge blueprint for building an e-commerce empire. According to the profile, T-Tok describes itself as "the ideal platform for users to provide users with a new and better e-commerce experience."

At present, T-Tok is indeed a large-scale e-commerce platform.

It has built its own retail ecosystem through labels such as #T-TokMadeMeBuyIt, including in-app checkout, product labeling, shipping, and returns.

This means that T-Tok has long positioned itself as an e-commerce shopping platform, not just a traffic platform that makes people look lively.

For the construction of a logistics center in the United States.

Although a T-Tok spokesperson said that the focus of T-Tok Shop is still the UK and Southeast Asia, which have successfully laid out e-commerce businesses.

This means that the United States is not the biggest focus. However, the fertile and huge US market is actually the place where T-Tok is most interested and wants to play its strength.

For various reasons, T-Tok Shop has not been going well in North America. This time to build its own logistics center, T-Tok also wants to use it as a low-commissioning probe, but the logistics center is a big matter, and it is difficult to keep a low profile.

The number of "social shoppers" catches up with Pinterest and Facebook, and T-Tok e-commerce has the confidence to T-Tok is increasing rapidly, with at least 10 million shoppers expected to be added this year. Note that this is in T-Tok People who shop on the app, not people who view short videos.

This new increase will allow T-Tok to surpass the established social giant Pinterest in terms of the number of "American social shoppers".

This is a huge advance.

According to statistics, 27.3% of T-Tok users placed an order on the platform this year, and by 2024, this proportion will rise to 38.6%.

By then, the number of social users shopping on this platform will exceed Facebook. This is a crushing trend for Facebook.

People who view short videos quickly turn into shoppers, no wonder T-Tok wants to build its own "FBA logistics center", no wonder Facebook is so nervous and constantly attacks Tik Tok。

The shopping scene on Tik Tok is getting stronger and stronger, and consumers have become accustomed to shopping on Tik Tok in many situations, including feed recommendations, influencer recommendations, family and friends recommendations, etc.

These trends will greatly increase Tik Tok's determination to strengthen its e-commerce business.

T-Tok rescues small brick-and-mortar stores overseas on the verge of bankruptcy, but Chinese sellers have problems monetizing T-Tok's influence in overseas e-commerce

is increasing, and it has even been favored by some foreign physical store owners.

During the pandemic in 2020, Sticky, a small candy shop in Sydney, was on the verge of closure. The shopkeeper, David King, resigned from his profession as a lawyer and opened the shop, which has been in business for more than 20 years.

However, under the impact of the epidemic, the small shop was on the verge of closure. In desperation, King listened to his daughter Annabelle's suggestion and put a video of the candy-making process on T-Tok with the mentality of trying it out.

Unexpectedly, this unintentional move eventually saved Sticky and brought the small shop back to life. After more than two years in business, Sticky has more than 6.7 million followers on T-Tok.

Laura Mallow, a British cosmetics brick-and-mortar shopkeeper, also made a lot of money on Tik Tok.

Laura said she earned a week's worth of her physical store in Wales in 2 hours through T-Tok Shop streaming.

T-Tok Shop's live broadcast in the UK surprised Lauras.

In 2020, Laura founded her own cosmetics company. I really joined T-Tok Shop at the end of April 2022. She didn't expect T-Tok Shop's live streaming works so well.

In addition to the above two merchants, Tiglily Bag, the top 1 brand in the women's bag category of T-Tok Shop, also benefited from live broadcasting.

Tiglily Bag started with 0 followers and achieved more than 20,000 followers in 2 months.

According to official data from T-Tok, Tiglily's single video has more than 400,000 views, and the GMV has increased 10 times in a single month.

At the same time, some Chinese brands are also gaining a lot on Tik Tok.

PatPat entered the T-Tok Shop as a well-known mother and baby brand and received strong support from T-Tok. Between September 12-25, PatPat joined forces with T-Tok Shop platform, held the 8th anniversary celebration of PatPat.

During the event, PatPat's total GMV on T-Tok increased by 172% month-on-month, with a total of 6.6 million event exposures and 5.5 million topic exposures.

However, compared with overseas local merchants and a few well-known Chinese brands, most Chinese sellers are currently experiencing monetization difficulties on Tik Tok.

The example of a Chinese seller is somewhat representative.

The seller has been in contact with T-Tok since September 2019, and has made four accounts with 2 million followers and 2 million followers in Indonesia.

In mid-2021, T-Tok Shop's UK and Indonesia stations were opened one after another, and a large number of sellers and MCN institutions settled in. As a result, many sellers "lost money", including this seller.

The seller concluded that T-Tok does have traffic at present, but it is difficult to monetize. The main reasons

are the following:

● Overseas user trust problem, because T-Tok opens overseas markets in the form of social entertainment platform, most foreigners' views on it are still out of touch with shopping, and it is not so easy to make them accept;

Currently based on T-Tok Most of Shop's are local small merchants and white-label products, and there is no trust relationship between them and consumers, and they can only promote orders through low-price methods such as $0.99, and early losses are inevitable;

It is for these reasons that T-Tok gives great support to high-quality brands. After all, as a "rising star" in the e-commerce business, T-Tok now needs the support of the majority of sellers.

Conclusion: While Chinese sellers are experiencing monetization difficulties on Tik Tok, as the number of "social shoppers" on Tik Tok increases, and similar " FBA Logistics Center" and other support facilities and policies continue to be introduced, and T-Tok will be another important choice for Chinese sellers in addition to Amazon in the future.

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