TikTok continues to grow around the world, but the business model is still being defined.
It is true that there are ads, but not many. Publishing them is expensive, and the public is very young, it has little purchasing power.
Now TikTok reports that it is looking for partners to launch its live shopping offer in the United States, something similar to what other social networks, such as Instagram, are already doing.
We read it in the Financial Times, where they indicate that TikTok is negotiating with TalkShopLive, based in California, with the aim of offering the live shopping function that many expect. If someone posts a video wearing a dress, followers could buy that dress, for example.
The goal is for creators and brands to be able to sell products through videos. Of the money paid, 10% would go to TalkShopLive, although it is expected that during the first phase TikTok will take care of all the commissions so that the consumer has a better price.
At the moment there is no signed agreement, but the path of TikTok is clear. Last year it partnered with Shopify to allow business accounts to integrate their catalogs into a dedicated tab, and began testing a dedicated Store feed with products sold by merchants.
This function was already testing it a few months ago in the United Kingdom, and it already works in Asia. Now the proposed targets are more concentrated in the United States and Germany.
While Instagram has confessed that its e-commerce system has not been as successful as expected, TikTok is beginning to bet heavily on the issue. My opinion is that we are talking about a very young public that cannot afford to buy the clothes advertised by the models on the platform, but it would not be the first time that I have been wrong.