How TikTok Shop became the next big digital marketplace

Luke Meredith

Have you bought anything from TikTok Shop recently? If so, you’re definitely not the only one.

The app’s ecommerce feature is generating over £50 million in sales each month, and with consumers more ready than ever to use the self-proclaimed ‘entertainment platform’ to part with their cash, brands big and small are taking full notice of TikTok Shop.

In this blog, we’re looking at a few reasons why TikTok Shop has become the fastest growing shopping channel in the world, as well as why it’s unlike any other mainstream digital marketplace that came before it.

The youth are on TikTok

According to Shopify, around 36% of TikTok’s users are aged between 18-24, and around 70% between 18-34. That 70% makes up over 1 billion users. Furthermore, TikTok is routinely used by children below the age of 18, although they may not be active TikTok Shop users.

While not all TikTok Shop purchases are being made from these age demographics, the platform is setting up for the future by building a huge consumer base of young people, who can be converted into shoppers in the future, if not today.

TikTok’s unique algorithm

Any regular TikTok user will know how determined its algorithm is to know you inside out. One day, you’ll scroll on your For You page and be greeted with a video that aligns perfectly with your interests, hobbies and loyalties, no matter how niche they may be.

Well, TikTok shop is doing the exact same thing. By getting to know its users, the platform can suggest relevant items that they are not only likely to want to buy, but likely to get positive use out of.

The numbers speak for themselves. According to Forbes, in February this year, 81.3% of TikTok Shop purchases were made by people who had already bought something from the platform before – up by over 17% from November 2023.

It’s hard to say with absolute certainty that TikTok’s algorithm is more effective than any other ecommerce or social commerce platform previously, but its sales numbers, combined with the cultural impact of the video sharing function of the app, make a pretty good argument for this.

TikTok wants brands’ trust

TikTok wants to bring the biggest brands to its platform, and has set up a Partners program to help do just that. In order to gain more trust from these brands, it has begun sharing many of its data capture methods with partners in the interests of transparency.

On one hand, this can be taken at face value, with TikTok offering transparency with brands and partners to help bring more money to its platform and create a healthy commerce environment for all. However, the opposing view is that TikTok is attempting to use brands purely for market research, and once it has collected all the data it deems necessary, it will ditch its partners. Unfortunately, only the future can determine what will happen in actuality.

From ecommerce platforms to general social network and digital success, we at Engage Web pride ourselves on identifying the best platforms for success for your business. To learn how we can help you bring in more business online, speak to our team now.

About
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Luke Meredith

Content Editor at Engage Web

At home in both the digital sector and the world of communications, Luke thrives on deadlines and has held roles in healthcare, retail and digital marketing, gaining a sound knowledge of a wide range of sectors. He’s a massive swot as well, holding a first-class degree in BA Communication and Media, and now uses his writing skills and keen editorial eye in his role as Content Editor here. Luke helps to oversee our clients’ content requirements, while also looking after a pool of freelance writers across three continents.

How TikTok Shop became the next big digital marketplace