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TikTok Looks to Challenge Amazon and Shein With New E-Commerce Initiative

TikTok has confirmed the testing of a new shopping section in the Trendy Beat app, in which users can purchase products supplied by the parent company ByteDance.

TikTok Looks to Challenge Amazon and Shein With New E-Commerce Initiative

The new feature is currently being tested in the UK. An additional shopping section is a platform for the sale of goods that are present in popular videos published on TikTok. For example, tools for extracting earwax are similar products.

The media reports that the virtual social interaction media platform currently has no plans to test the new feature in the United States. In this country, the company is focused on activities aimed at increasing the number of sellers in the TikTok Shop. The platform aims to become a convenient and efficient commercial space for selling products of various brands.

Experts say that the lack of plans to test the new feature in the United States at the moment is not a sign that the company has basically abandoned the introduction of new features in the American market. Over time, a new section may appear in the US.

The application for a new trademark, which is an additional function, specifies items of clothing, including dresses, scarves, hats, shoes, swimwear, sleep masks, sweaters, skirts, shirts, and suits. This means the appearance of these product names in the new section of the virtual store.

The media has already reported on ByteDance’s intention to sell its own products in the video application. As part of this initiative, the company collects information about goods popular on this digital platform through TikTok tools. After that, the company either buys the products in demand or launches an independent production process for the goods in demand. The media also reported that ByteDance has a network of suppliers of popular commodity units.

The new feature is evidence that TikTok has intentions to occupy positions in the e-commerce market and challenge such major players in the industry as Amazon and Shein. The company is gradually moving away from its originally approved business plan, the centerpiece of which was TikTok Shop, a virtual marketplace for brands to sell their products. After the introduction of the new function, the company will sell its products. The modified strategy of TikTok’s commercial activities is in many ways similar to the concepts of Amazon Basics and Shein, which promote and vend their own bestsellers.

TikTok is currently promoting brands such as PacSun and Revolve for TikTok Shop. This virtual commercial platform has been tested in the USA since November last year.

In terms of performance in the financial dimension of digital reality, TikTok has achieved some success in Asia. In the UK, the company’s respective efforts have a complex implementation process without impressive achievements. Against this background, it is not surprising and quite natural to test a new feature in the British market.

TikTok is actively working on developing online shopping opportunities. At the same time, competitor applications are shutting down projects related to e-commerce. For example, in January of this year, Instagram removed the Store tab. Later, the social network announced that it would no longer be possible to make online purchases in its functional space. Facebook disabled a similar feature last August.

TikTok is still at the initial stage of its activity as an e-commerce platform, but it has already been able to influence consumer habits. The app can stimulate impulsive sales. The hashtag that TikTok forced the user to buy something has 59.3 billion views on this platform.

As we have reported earlier, TikTok to Invest Billions of Dollars in Southeast Asia.