TikTok Shop, an e-commerce marketplace which is currently being tested in the UK, will allow creators and online merchants to sell their products and services directly to users through the TikTok app, Bloomberg reported Thursday. TikTok has confirmed the message in an official statement.
Last month, TikTok launched its first “For You House” pop-up shop in London, which operated from July 22 to August 8. The employee in charge of the store said that with the alleviation of the COVID-19 pandemic, TikTok is aiming to seize on the trend of people returning to physical stores by launching a pop-up shop which will help attract potential customers and enhance TikTok’s brand awareness and community influence.
Up to now, the TikTok Shop has been tested in Indonesia and Europe. According to an individual in charge of the project from TikTok’s parent company Bytedance, the platform is trying to transform its extensive user base into consumers. It is estimated that TikTok will complete $185 billion in transactions by 2022.
TikTok enjoys a huge number of users spread across the world. According to data from market research institution Sensor Tower, since 2018, Douyin and TikTok have been the two most popular apps on the global entertainment list for three consecutive years. The sister platforms are expected to receive 380 million downloads globally from the App Store and Google Play, ranking highest in the first half of the year.
Previously, most of TikTok’s revenue came from advertising and in-app products. According to Sensor Tower’s data, it is estimated that the revenue from in-app products in Douyin and TikTok will exceed $920 million in the first half of this year, an increase of 74% year-on-year.