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Night Light | Stop, Shop and Scroll
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TikTok Shop is About to Take Over…
I feel like every day I log on to multiple TikTok shop analytics websites, and there’s always a new product selling a million dollars. If I just scroll through the top 5 selling products this month, I see that all of them are bringing in between 2-4 million dollars. This week, we’re back on the subject of TikTok Shop, but this time we’re looking more into the numbers, and less at the garbage that’s also for sale.
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Top selling products today.
As I continue to gather information and follow this closely, I expect we’ll continue to see a new influx of innovative products, large preexisting brands selling on Shop, and new creators diving headfirst into affiliate marketing… also even more garbage.
What’s been happening?
By the end of 2023, 500,000 merchants were busy selling products on the platform. If you’re a new consumer product business, I don’t know why TikTok shop wouldn’t be your focus right now. When I look at the top products in the last month, most of them joined the platform in September of 2023 or later. I’ve even come across some merchants selling $2M in product who have only been selling for four months.
What’s TikTok’s edge?
People buy from Amazon because of pricing and Prime—It’s the cheapest place to find most items, and you can get them all in a day or two. However, it’s only a matter of time before TikTok Shop competes directly with Amazon. I think they’ll build more distribution and fulfillment centers, compete with Prime (offer same-day or two-day delivery), and eventually have comparable pricing. Imagine paying $10 a month to remove ads and get products delivered in 1-2 days.
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How do you not want this after this banger video?
The beauty of TikTok Shop is that the content drives sales. Consumers are already scrolling through millions of videos every day, so building shopping into that content flow was an obvious next step. Usually, you go to Amazon with a purpose or already know what you want to buy. On TIkTok, you first watch content and then see a video on why you should buy something.
So you want to sell socks…
If you’re creating or selling a consumer product business in 2024, my personal opinion is that you should start with TikTok Shop. First, develop your content strategy, and then determine how to use it to sell products.
Let’s say, for example, that you decide to sell socks tomorrow…
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These are socks. Buy our socks.
Chances are, nobody is going to find your website and you’ll sell zero pairs of socks. Maybe your mom buys a pair because she feels bad that nobody is buying your socks. If you sell socks on TikTok, and you make a hilarious TikTok about them, you could end up selling out overnight. Your ability to scale is helped by this content platform that already has billions of people scrolling through videos.
The Big Takeaway:
TikTok shop should not be overlooked if you’re building a consumer brand. It’s the area you should focus on right now, and there’s never been a better time than now to start selling.
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W
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PBS >
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Jobs
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