TikTok, with its massive traffic, is serious about e-commerce, which is, after all, one of the best ways to monetize traffic.
In order to truly crack the e-commerce cake, it is not enough to have only the flow, but also to have the cooperation of offline "hardware", to collude the four streams of information flow, business flow, capital flow, and logistics, in order to build a real e-commerce kingdom.
There is no doubt that local logistics is a tough nut to crack and a tough nut to crack.
Now, TikTok Shop is getting ready to do the hard work in the United States, with plans to create a "fulfillment center" in the country that will rival Amazon.
TikTok's fulfillment centers are designed to provide warehousing, delivery, and returns for e-commerce sellers to "ensure TikTok Shop's rapid and sustainable growth."
In general, TikTok's plan is to create a fulfillment center similar to Amazon's FBA fulfillment center, which both makes it easier for buyers and removes barriers for sellers.
It's a test of the waters, but as TikTok Shop orders climb, TikTok will clone countless FBA fulfillment centers.
TikTok Shop will be a formidable competitor to Amazon.
TikTok has always had e-commerce ambitions and a big vision for an e-commerce empire. According to the profile, TikTok portrays itself as "the ideal platform to provide users with a new and better e-commerce experience."
TikTok is indeed a sizable e-commerce platform now.
It has built its own retail ecosystem with hashtags like #TikTokMadeMeBuyIt, including in-app checkout, product labeling, shipping, and returns.
That means TikTok has long positioned itself as an e-commerce shopping platform, not just a traffic platform to watch.
About building a logistics center in the United States.
For now, though, TikTok's focus is still on the U.K. and Southeast Asia, where it has a successful e-commerce presence, according to a TikTok spokesperson.
The implication is that the US is not the biggest priority. But the fertile, sprawling American market is where TikTok is most focused and active.
For a variety of reasons, TikTok Shop hasn't fared so well in North America. TikTok is also trying to build its own fulfillment center as a way to keep a low profile, but it's hard to keep a low profile when it comes to fulfillment centers.
TikTok has more social shoppers than Pinterest and Facebook
The number of "social shoppers" on TikTok is growing rapidly and is expected to add at least 10 million shoppers this year. Note that these are users who shop on the TikTok App, not those who view short videos.
The new addition would put TikTok ahead of established social giant Pinterest in terms of the number of "social shoppers" in the United States.
This is a huge step forward.
According to statistics, 27.3% of TikTok users have purchased something on the platform this year, and that number will rise to 38.6% by 2024.
By then, there will be more social users shopping on the platform than on Facebook. This is a crushing trend for Facebook.
It's no wonder TikTok is building its own "FBA fulfillment center," or that Facebook is nervous and constantly attacking TikTok.
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