TikTok Aims to Compete with Amazon and Shein through Innovative E-commerce Venture

TikTok has announced the testing of a new shopping feature called "Trendy Beat" within its app, offering products sold and shipped by a subsidiary of its parent company, ByteDance. While the testing is currently limited to the UK, the company has filed a trademark application for Trendy Beat in the US, indicating potential expansion in the future. The feature showcases popular items seen in trending videos, ranging from ear wax extraction tools to apparel items like dresses, scarves, and footwear.

Internally known as "Project S," ByteDance's plan to sell its own products leverages TikTok's insights on trending items, allowing them to acquire or manufacture those products through a network of suppliers. This move represents a shift in TikTok's e-commerce strategy, which previously focused on its TikTok Shop marketplace where brands can sell their products on the platform. With Trendy Beat, TikTok aims to challenge retail giants like Amazon and Shein by adopting a similar e-commerce model used by Amazon Basics and Shein to promote and sell their own popular products.

While TikTok Shop has seen success in Asian markets and has been testing in the US since November 2022, it has faced challenges gaining traction in the UK. Hence, TikTok has chosen the UK as the testing ground for its new e-commerce initiative before potential expansion into the US market.

In contrast, some competitor apps have scaled back their e-commerce efforts. Instagram removed its shop tab and discontinued its live shopping feature, while Facebook also shut down its live shopping offering in August 2022. Despite this, TikTok continues to invest in shopping features, recognizing the growing potential in the e-commerce space.

Next Article