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Since its U.S. launch in September 2023, TikTok Shop has grown quickly, making a notable impact during the 2023 holiday season. With over a year of experience, TikTok’s eCommerce platform TikTok Shop is gearing up for a strong 2024 holiday season, aiming to attract shoppers with a series of targeted promotions.
TikTok Shop’s Holiday Strategy
TikTok is leveraging its network of brands and influencers to promote TikTok Shop during the holiday season. A recent event in New York City brought together top creators and merchants to discuss success strategies. Additionally, TikTok has planned a range of events in November to build awareness and highlight holiday shopping opportunities on the platform.
One major upcoming event is Brand Palooza, scheduled for November 13-27. During this period, TikTok Shop will spotlight popular brands with exclusive offers, including Phillips, Benefit Cosmetics, Liquid IV, HeyDude, and The Ordinary Store. There will also be livestreams from merchants and an initiative encouraging customers to use Venmo as a payment method.
According to Nico Le Bourgeois, TikTok Shop’s U.S. head of operations, the platform’s strength lies in its ability to guide users from content discovery to purchase in one seamless experience, a style of shopping TikTok calls “discovery ecommerce.” Since its launch, monthly shoppers on TikTok Shop have nearly tripled, with Le Bourgeois noting that the platform’s model allows any creator or merchant to potentially achieve viral success.
2024 Holiday Spending Projections
Adobe Analytics projects that U.S. online sales for the 2024 holiday season, from November 1 to December 31, will grow by 8.4% year over year, reaching $240.8 billion, up from $221.8 billion in 2023.
Although TikTok Shop is gaining traction, experts believe major eCommerce players like Amazon and Walmart are still well-positioned. Baruch Labunski, CEO of digital marketing company Rank Secure, highlights TikTok Shop’s convenience in bridging content and commerce but notes that the platform appeals primarily to younger shoppers with smaller budgets. In contrast, older consumers with higher disposable incomes often favor established retailers like Amazon and Walmart.com.
The Growing Influence of TikTok Shop in eCommerce
Despite this, some industry insiders see TikTok Shop as a potential disruptor. Roxy Couse, director of community and content marketing at Bloomreach, views TikTok Shop’s rapid growth as a sign that it is becoming a strong competitor in eCommerce. With nearly 1.9 billion global users spending around an hour daily on the app, TikTok is turning passive scrolling into active shopping.
Couse notes that while platforms like Amazon and Walmart are destination shopping sites, TikTok’s algorithm-driven recommendations introduce users to unique products. This makes the experience social and engaging. She believes this interactive and discovery-focused approach to shopping is reshaping eCommerce, a trend traditional retailers need to follow closely.
In summary, TikTok Shop is taking significant steps to compete in the 2024 holiday season. It is blending social engagement with eCommerce, targeting a new generation of consumers, and redefining product discovery in a way that established platforms will need to watch closely.
