February 17, 2021
In the past few years, the way we shop has changed dramatically. As social platforms evolve into new age malls, a trend largely driven by the pandemic, consumers will continue to prioritize relationships with brands based on the online experience they provide every step of the way.
With that in mind, TikTok and Shopify announced a global partnership in October 2020 designed to help more than one million merchants reach a highly engaged audience and increase sales by leveraging TikTok's global scale. Today they announced new tools and integrations to expand sales options for retailers and improve the branding experience for consumers.
Faster, more efficient and safer payments
In 2020, Shopify helped shoppers complete more than 137 million orders in 2020 with Shop Pay, and by year-end had accumulated gross product value (GMV) of nearly $ 20 billion since its launch in 2017.
To enable even greater usage, the company is working with Facebook so that retailers who sell with stores on Instagram and Facebook can use the tool. In case you are not familiar, Shop Pay offers features that are similar to Amazon's one-click purchase product. In this case, users can save their email address, credit card, shipping and billing information in the app to complete their transactions faster and more efficiently, regardless of whether they are surfing on Facebook or Instagram.
"Through our continued collaboration with Facebook, we're excited to combine the best in retail with the power of the community and to extend the benefits of Shop Pay to even more people who buy and sell with stores on Instagram and Facebook," Shopify wrote in the official Article announcement. The article also noted that the Shop Pay checkout process is 70 percent faster than a typical checkout process while increasing the conversion rate by 1.72 times.
Convenient order tracking and sustainable shopping opportunities
According to a recent Twitter customer support report seventy-eight percent of retail brand handles that excel at customer care take responsibility for customer issues to build trust. A key part of this is personalized customer support, such as a convenient way to track and manage order tracking.
"With more than 430 million orders tracked over 450 billion miles, our global order tracking service enables consumers to keep track of all important purchases, receive updates and manage orders," said Shopify.
Aside from ease and convenience, people take advantage of social trading for the greater number of options available, tailored to what matters most to them. For a large proportion of consumers, sustainable shopping is a top priority when making these decisions. According to Shopify, more than half (53%) say they prefer environmentally friendly or sustainable products, which is why Shop Pay offsets 100 percent of delivery emissions for every order.
Making a more direct link between creators and monetization opportunities
TikTok made its entry into the e-commerce world at the end of 2020 with the integration of Shopify and Walmart. Today, the platform plans to expand its efforts even further with several new tools to enable more e-commerce opportunities and maximize its revenue options. According to a new report by the Financial Times, the platform notified advertisers of three new upcoming updates to the app. These include:
- A tool that allows the most popular users to share links to products and automatically earn commissions on sales
- The possibility for brands to present catalogs of their products on the platform
- "Livestreamed" shopping, a mobile version of TV shopping channels where users can buy goods with a few taps of the finger after being featured by TikTok stars
Improving the presentation and improving the experience is wise and welcomed, according to several testimonials shared with FT.
"The product and content haven't matured into a place where discerning advertisers really want to get involved," said a manager at an advertising agency. With additional features to simplify the listing and formalization of commission processes, as well as making it available in an in-app storefront, this could be the nudge some advertisers are waiting for to pull the trigger.
"Culturally, TikTok is well suited for livestream trading to capture the dissolving distinction between content and commerce because it doesn't feel as good as other platforms," added Jack Smyth, creative technology officer at Mindshare, WPP.
While 2020 was facing a tumultuous and uncertain year for the platform, one thing is clear: in order to keep its greatest creators, it needs to be ensured that they can generate revenue similar to that of other, more established and lucrative platforms.
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