TikTok, the popular short-form video platform, is currently testing a new in-app shopping section called "Trendy Beat."
This section offers various products for sale, which are shipped and sold by a subsidiary of its parent company, ByteDance.
This photograph taken with a fish-eye lens in Paris on March 1, 2023 shows the social media application logo TikTok.
Is it Available for Testing in the US?
The Financial Times initially reported on this feature, revealing that it is currently in the testing phase in the United Kingdom. Within the shopping section, users can find popular items that have gained attention in trending videos.
In a statement provided to TechCrunch on Thursday, TikTok confirmed that the new e-commerce initiative is not undergoing testing in the United States.
Instead, the company's current focus in the US market is centered on the expansion of its TikTok Shop offering. This initiative allows brands to sell their products directly on the TikTok platform.
TikTok aims to enhance the shopping experience for users by actively seeking to onboard new merchants to its TikTok Shop.
Internally known as "Project S," ByteDance's plan to sell its own products on TikTok leverages the platform's knowledge of trending items.
This allows ByteDance to either acquire or manufacture these products using a network of suppliers. By introducing Trendy Beat, TikTok aims to challenge retail giants like Amazon and Shein.
The new feature represents a shift in TikTok's e-commerce strategy, as it moves from being a marketplace for brands to selling its own products, similar to the models employed by Amazon Basics and Shein, as noted by Tech Crunch. While TikTok Shop has been making rounds and gains in Asian markets, this is not the case in the UK, according to the Financial Times.
This may explain why TikTok chose to test the new e-commerce initiative in the UK before potentially expanding it to the US.
The company has recently included brands such as PacSun and Revolve for its TikTok Shop, which has been in testing in the US since November 2022.
TikTok Sets its Sights for E-commerce Expansion
TikTok is setting its sights on a significant expansion of its global e-commerce business, with a target of reaching up to $20 billion in merchandise this year.
Despite encountering challenges in the US market, the parent company ByteDance is determined to drive this growth, leveraging the rapid expansion of its presence in Southeast Asia.
ByteDance's TikTok aims to significantly increase the scale of its e-commerce venture with a target of up to $20 billion in merchandise for this year.
This ambitious goal signifies a substantial growth compared to last year's merchandise value target of $4.4 billion.
Particularly, the company sees great potential in Indonesia, where influencers play a significant role in promoting and selling products through live-streamed videos. By leveraging this trend, TikTok aims to tap into the market and capitalize on the increasing popularity of influencer-driven sales.
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