Americans spend an estimated $32 million per day on TikTok Shop, CapitalOne Shopping Research said. The shopping platform has categories for clothing, beauty, electronics, household goods and more with the ability to reach millions of consumers.
TikTok’s main demographic is teens and college-aged individuals and the majority of TikTok creators are between 18-24 years old, according to Exploding Topics.
Sam Timar, a sophomore nursing major, is a buyer on TikTok’s shopping platform.
“I’m not spending much on TikTok right now because I am a college student, but when I would purchase from TikTok my orders would be about $30,” Timar said. “Just something like shorts or a cute top, TikTok’s clothing is cheap so you can get a lot for a little.”
TikTok Shop roles
Sellers, creators and shoppers make up much of the platform, Timar said. Creators build their businesses, while sellers earn commissions by showcasing and selling the products created by these individuals.
Joni Bowen, the director of strategic communications and external affairs for the Crawford College of Business and Entrepreneurship, believes that sellers can take advantage of the TikTok algorithm.
“TikTok has an impressive ability to target content to consumers that is appealing to them, so by knowing a person’s likes and interests, the platform can place content that is uniquely targeted to each user,” Bowen said.
Shoppers who also buy products from TikTok Shop and are often guided to their purchases through recommendations, offers and entertainment, Bowen said.
Seller methods
Sellers have started using different strategies to help boost their content. The most common include live streams and engaging videos.
Live streams allow shoppers to see the product being used or worn. The streams typically provide shoppers with a coupon if they buy the product directly from the seller.
Published videos are another way sellers create engaging content to promote products. These often feature skits or real-life scenarios that incorporate the item, helping viewers imagine themselves using it.
“Published videos showcasing products seem to be very effective,” Bowen said. “For example, if you can see a dress on a real person, it is easier to visualize the product than typical photo ads or carousels used on other platforms.”
Interest in a product can also help lead to the purchase as well.
A study showed that 71.2% of TikTok shoppers are inspired to shop when they stumble across something of interest in their feed, according to CapitalOne Shopping Research.
Timar is currently interested in gym-related products on the TikTok shop.
“Every time I see something related to the gym such as gym shorts or sports bras, I always click on the ad and look further into it,” she said. “I’m obsessed with gym shorts right now, when I see an influencer wearing something, I click the ad.”
The Future
TikTok Shop statistics point towards it being a contender for a top e-commerce platform.
The platform connects users with businesses, with 79% of users who reported they’ve discovered new brands through small business content, according to CapitalOne Shopping Research.
“I feel that the platform has made it a lot easier for businesses to grow,” Timar said. “Social media, especially TikTok, helps businesses reach many potential consumers.”
Statistics project that the number of TikTok shoppers will also grow by 5.91% annually to 55.6 million by 2027, CapitalOne Shopping Research said.
As long as TikTok is readily available and used by the public, TikTok Shop could be sustainable long-term, Bowen said.
“For items like clothing, shoes, home goods and food, this platform could continue to grow in popularity among users and could even be seen as a more convenient way to purchase products than on a company’s website,” she said.
Robyn Taylor is a reporter. Contact her at [email protected].