How TikTok and Shopify are Maximizing E-Commerce Revenue Options
The way we shop has changed significantly over the past few years. Consumers will continue to value relationships with brands based upon the online experience they offer, a trend that was largely driven by the pandemic.
In this spirit, in October 2020, TikTok and Shopify announced a global partnership geared to help more than one million merchants reach highly engaged audiences and drive sales by tapping into TikTok’s global scale. Today they announced new tools, integrations, and revenue opportunities for retailers. This will allow them to enhance brand-consumer experiences and increase sales.
Securer, faster and more efficient payments
In 2020 Shopify’s Shop Pay helped buyers complete more than 137 million orders in 2020, and by the end of the year, had facilitated nearly $20 billion in cumulative gross merchandise value (GMV) since its launch in 2017.
To facilitate even more usage, the company has partnered with Facebook so that retailers selling with Shops in Instagram and Facebook can take advantage of the tool. In case you’re unfamiliar, Shop Pay functions akin to Amazon’s One-Click purchase product. In this instance, the app will allow users to save their email address and credit card information, as well as shipping and billing information, so they can complete transactions faster and more efficiently, regardless of whether they are browsing on Facebook or Instagram.
“Through our continued work with Facebook, we’re excited to combine the best in commerce with the power of community, extending the benefits of Shop Pay to even more people buying and selling with Shops on Instagram and Facebook,” Shopify wrote in the official announcement. Shop Pay’s checkout process is 70% faster than the average checkout and offers a 1.72x higher conversion.
Easy order tracking and sustainable shopping options
A recent Twitter report on customer service shows that Seventy-eight percentRetail brand managers who excel at customer service take ownership of customer issues in order to build trust. Personal customer support is a key component of this. It allows you to track and trace your orders.
“With 430+ million orders tracked over 450 billion miles, our global order tracking service enables consumers to track all of their important purchases, receive updates, and manage orders,” shared Shopify.
Social commerce is not only convenient, but it also offers a greater variety of options that align with their priorities. A large proportion of consumers place sustainability as a top priority in shopping. Shopify shows that 53 percent of respondents prefer green products. Shop Pay offsets 100 % of all delivery emissions for every order.
More direct connections between creators and monetization possibilities
TikTok’s entry into e-commerce was made late in 2020 when it integrated with Shopify and Walmart. Today, the platform’s looking to take its efforts even further with several new tools to facilitate more e-commerce opportunity and maximize its revenue options. According to a new report by The Financial Times, the platform briefed advertisers about three future updates that are coming soon to the app. These are:
- This tool allows its most popular users to share links to products and automatically earns commission on all sales
- Brands have the ability to display catalogs of their products on this platform
- “Livestreamed” shopping, a mobile phone version of television shopping channels, where users can buy goods with a few taps after seeing them showcased by TikTok stars
According to several statements made by FT, the push towards presentation and experience enhancements has been a smart and welcome one.
“The product and the content has not matured into a place where sophisticated advertisers really want to commit,” one ad agency executive said. This could be the nudge that some advertisers need to pull the trigger. It includes features that simplify listing and formalize commissions, as well as those that deliver on an in app showcase.
“Culturally, TikTok is well placed for livestreamed commerce to capture the dissolving distinction between content and commerce because it doesn’t feel as polished as other platforms,” added Jack Smyth, Creative Technology officer at WPP’s Mindshare.
While the platform faced a tumultuous and uncertain 2020, one thing is clear – in order to keep its biggest creators, it needs to ensure that they can generate similar income to what they’d be able to on other, more established and lucrative platforms.
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