TikTok Shop drives $100 million in Black Friday sales after a year in the U.S.
If you did some shopping over the weekend, how’d you do it? As in, did you shop in person? Online? Or maybe over social media? According to TikTok Shop — that’s the platform’s in-app marketplace — it did over $100 million in sales on Black Friday in the United States.
That’s not a huge piece of the more than $10 billion in total spent online on Black Friday, according to Adobe Analytics. But it is a growing piece, considering TikTok Shop launched in the U.S. just over a year ago.
When I open TikTok Shop, the first video that pops up is this: “I am willing to bet my life savings that there will never come a day where I use another cleaning gadget more than my pressurized handheld steam cleaner.”
Yes, my TikTok algorithm is very cool, thank you. Really though, this video is your typical influencer fare. Except there’s a little floating link where you can add the product to your cart and checkout directly through TikTok.
“It’s very Home Shopping Network. It’s very QVC. It’s just on your phone,” said Claire Tassin, a retail analyst at Morning Consult.
Tassin said brands are trying to meet consumers where they are. And social media platforms, including Instagram and YouTube, want to make buying seamless while taking a cut of the sales.
“It’s an additional revenue stream for TikTok beyond just the economy of peoples’ attention,” Tassin said.
That revenue stream is still kind of small. Social commerce on marketplaces like TikTok Shop make up around 5% of total e-commerce sales in the U.S., said Diana Smith, associate director of retail at Mintel. That’s partly because it’s newer here. It’s been popular in Asia for years, and American shoppers are a little nervous to try it out.
“Some consumers may not be exactly sure who they’re buying from or if the platform or the brand could be trusted,” Smith said.
But as consumers get more comfortable, social media shopping is expected to grow. Because, said Oliver Wright — who leads consumer goods and services at Accenture — shoppers are craving direction.
“Consumers consistently cite a high level of uncertainty that they are buying the product that’s the right fit for them,” Wright said. “This sort of engagement helps you cut through the chaos” with algorithm-driven recommendations.