TikTok Launches New In-Stream Shopping Push

While TikTok’s in-stream shopping push hasn’t gained momentum as fast as the platform would like, TikTok shopping is rising, providing more opportunities, both for the platform and merchants.

Indeed, TikTok says that “millions of items have been purchased from nearly half a million merchants and brands” over the past year in the app. And as we head into the holiday push, TikTok’s launched a new “Fall Deals For You” promotion to encourage more buying activity.

Throughout October, TikTok will be offering discounts across thousands of trending products from a range of big name brands.

As per TikTok:

“Starting today, top brands like Phillips, Dyson, Keurig, e.l.f. Cosmetics, NYX cosmetics, Tarte Cosmetics, Anastasia Beverly Hills, and Pacsun are offering huge savings on TikTok Shop.”

TikTok’s also hosting several live shopping events, including Glamlite launching its exclusive Michael Myers Collection, and DJ-turned-hobby-influencer Steve Aoki sharing trading card deals.

The hope is that this will once again help to build more momentum behind TikTok’s in-app shopping push, which remains a key focus for the platform in building on its revenue opportunities.

Because it’s already done it in China, with in-stream sales now the most significant revenue driver in the Chinese version of the app by far.

On Douyin, which is TikTok for Chinese users, over $374 billion in product sales were made via the app in 2023. That’s expected to rise to $548 million this year, an increase of close to 50%, which underlines the massive momentum that Douyin has tapped into for in-app sales.

By comparison, TikTok reportedly facilitated $3.8 billion in total spending in the app throughout 2023. That’s “billion” with a “b”, so it’s still significant, but comparatively, there’s a massive gap between the two platforms.

As significant driver of Douyin’s in-stream shopping growth has been the popularity of live-stream influencers selling in real-time, and a growing number of these are actually now AI characters that can stream in the app 24/7.

TikTok’s been trying to follow the same path, by adding more and more in-stream purchase options, in the hopes of re-creating the same impact. But thus far, Western users remain wary of buying products in social apps, while it also seems unlikely that AI influencers, which TikTok is now also testing with some brands, will have the same impact.

So why do these trends catch on in China, and fall flat in other markets?

It’s difficult to say, but it does seem that the Chinese Government’s enhanced oversight of local businesses could add a level of assurance to such processes. Chinese consumers have also always been more willing to adapt to technological advances, while the products being sold on Douyin clearly hold appeal to local shoppers.

Online shopping adoption just hasn’t been as readily adopted in other regions.

It did seem like it would be, after more people were forced into online shopping during COVID, which many experts predicted would exacerbate the broader digital shopping shift. But it didn’t. Once physical stores re-opened, most people went back to their regular routine. And while online shopping adoption is increasing over time, the momentum behind it is nowhere close to the enthusiasm with which Chinese shoppers have jumped in.

Which doesn’t bode well for TikTok’s success in this respect, but again, with such high sales and revenue numbers in China, you can see why TikTok is keen to keep pushing this element.

Maybe there’ll be a tipping point at some stage, and things will shift, and over time, more and more younger users are growing more accustomed to online buying.

But it does look like it’ll take some time. And given TikTok’s pending U.S. ban, it may not be able to wait.