TikTok is wading into the messy world of directly selling physical goods, a move largely unprecedented among Western social media companies - for good reason. TikTok later banned merchants from engaging in these forms of “gambling,” one of the people said. Some of the sellers also used gimmicky tactics, like asking customers to pay to spin a wheel with different prizes during livestream broadcasts. TikTok is shifting its e-commerce strategy after learning that Chinese manufacturers were struggling to provide adequate customer service to Western consumers on TikTok Shop, as well as to reduce long shipping times from China to the U.S.
TikTok hinted at the feature in a Los Angeles job listing, calling it a “ central hub” where customers can discover sales promotions and manage their orders. Users will be able to browse goods from both the new store and TikTok Shop through a dedicated e-commerce tab within the app. Most of the items, ranging from kitchen gadgets to toys, will come from manufacturers in China, some of the people said. TikTok is purchasing its own inventory as part of the initiative, and will handle things like logistics and customer service. The new store will be distinct from TikTok’s existing TikTok Shop feature, in which brands pay a small commission to sell their products on the platform.
version of the app as soon as next month, putting the company in direct competition with e-commerce platforms like Amazon, Shein, and Temu, according to people familiar with the matter. TikTok is planning to launch an online retail store in the U.S.
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