TikTok is preparing to launch its live shopping feature just in time for the holiday shopping season.
The upcoming feature is set to launch in the United States and marks TikTok's second attempt to introduce live shopping outside of Asia, as the app initially tried to promote the feature in the UK. The feature will be called TikTok Shop and is a separate tab within the social media app.
In this photo illustration, the social media application logo, TikTok is displayed on the screen of an iPhone on April 13, 2020, in Arlington, Virginia - TikTok has pledged $250 million to local organizations around the world supporting healthcare, education, and struggling communities impacted by the coronavirus pandemic.
TikTok has launched a TikTok Shop sign-up page for interested merchants on their website, which will let them directly sell their products to consumers through the video-sharing app.
"TikTok Shop is an innovative new shopping feature which enables merchants, brands, and creators to showcase and sell products directly on TikTok through in-feed videos, LIVEs, and the product showcase tab," the official site reads.
Read Also: Tiktok Now Allows Users to Crosspost 'Tiktok Stories' on Facebook and Instagram
TikTok In-app Shopping Feature: How to Sign-up as a Merchant
The big move to introduce American TikTok to live shopping will be aided by a third-party app, as TikTok collaborated with TalkShopLive, a Los Angeles-based online selling platform, according to Reuters.
Business Insider reports that interested merchants will be required to provide a U.S. company registration document to apply, while individual sellers need to provide a US-issued passport or driver's license, which is still subject to approval for 1-2 business days.
Based on TikTok shops from Southeast Asia, once approved as a seller, users will have access to the TikTok Shop: Seller University, which serves as a training guide aiding TikTok sellers in carrying out business processes on the platform.
Additionally, signing up as a merchant costs nothing. However, TikTok stated in its terms that it would take a commission from each sale.
"The commission fee for each product sale is 5%. This is reduced to 1.8% for the first 90 days after successful registration, and then the commission rate reverts back to 5% after the 90 days," the site explains.
How TikTok Expanded From Video Content to E-Commerce Before U.S. Expansion
As of now, TikTok Shop is already available to users in seven Southeast Asian countries and the U.K. amidst its live testing in the U.S.
TikTok's most successful market happens to be South Asia, according to TechInAsia. At least four SEA countries out of ten worldwide garner the most active Tiktok users.
However, despite TikTok Shop's success among seven of its Southeast Asian hubs, its U.K. counterpart reportedly failed to garner interest, thus abandoning expansion in the region.
An article from My Customer analyzed the trends in the U.K. and attributed the failure of TikTok shops to a lack of engagement and influencer opportunities in the region.
The U.K. market for TikTok may not be comfortable enough to buy from the QVC Livestream style of selling, as it still unfamiliar environment compared to Asia, where online shopping is all the hype.
Related Article: Why TikTok is a Threat to Google? Here's the Alarming Part About Search Results
This article is owned by TechTimes
Written by: Andi C.
