TikTok is taking another shot at social commerce with the relaunch of TikTok Shop on Beta in the UK.
The platform aims to provide a more seamless shopping experience for its users, but will it be able to overcome past hurdles and establish a strong foothold in the market?
TikTok Shop 2.0 in the UK
The new TikTok Shop offers a select group of sellers the opportunity to participate in the Beta version and provide feedback for improvements.
In exchange, they will enjoy a 0% referral fee for the first 90 days.
With over 1.6 billion users, 83% of whom say TikTok influences their purchase decisions, the platform could be a game-changer for SMEs looking to expand their reach.
Unlike Instagram Shop, TikTok Shop enables users to purchase products directly from live streams and videos.
The platform will initially charge a 1.8% commission on sales, which will increase to 5% after 90 days.
TikTok Users in the UK Versus China
TikTok’s previous venture into social commerce in the UK was infamously fraught with challenges.
Issues such as staff burnout, tension between the company’s Chinese owners and London employees, and poor traction resulted in disappointing performance.
In contrast, TikTok Shop has enjoyed tremendous success in Southeast Asia, generating a gross merchandise value of $4.4 billion in 2022.
With only 22.4% of the UK population being ‘social buyers’ compared to 84% in China, the new TikTok Shop on Beta faces an uphill battle in establishing itself as a serious contender against Meta’s Instagram.
Compounding these challenges are recent controversies surrounding TikTok’s data privacy practices, which have damaged public trust.
The platform was fined £12.7 million for misusing children’s data, and its CEO faced questions in the US Senate over data privacy concerns.
To succeed, TikTok Shop must address these issues and reassure both sellers and buyers that it has improved its data privacy practices.
By learning from its past missteps and the success of its Southeast Asian counterpart, TikTok Shop has the potential to carve out a significant niche in the UK social commerce landscape.
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