TikTok’s big pivot to shopping risks putting off users
Years ago, it seemed like TikTok might fill the void left by Vine. Now, it’s closer to becoming one big virtual department store.
TikTok is testing a new feature that will automatically identify products in videos and allow users to click into a page that displays similar items for sale. The feature is part of TikTok Shop, the app’s e-commerce platform that launched last year. It intends to combine the ease of shopping on a platform like Amazon with recommendations from TikTok influencers.
Like it was for Cher Horowitz, shopping is TikTok’s strategy for success. It’s allegedly targeting $17.5 billion in sales in the US in 2024, relying on e-commerce to sustain revenue growth beyond social media advertising. According to The Information, the company also plans to build livestreaming facilities across the US from which creators could sell products to viewers—like QVC…if it was for Gen Z and people obsessed with LED strip lights.
But the master plan could backfire
As the company leans further into shopping, it has to compete not only with established giants Amazon, Temu, and Shein but also, perhaps, against its own users. TikTok user growth is slowing down: The app saw 3% YoY quarterly growth in 2023, compared with 12% in 2022, according to market intelligence firm Sensor Tower. And there’s some evidence that TikTok Shop may be partially to blame:
- Users have reported that the new automatic shopping feature is full of cheap tchotchkes and counterfeit copies of popular items. (According to guidelines on the TikTok site, selling counterfeits in the TikTok shop is prohibited, and users who encounter them are asked to report them so they can be removed.)
- Across multiple Reddit threads and TikTok videos, users said the Shop feature diminished the app experience and ruined their For You Page.
Is the writing on the wall? Last January, Instagram removed the Shop tab from its app after backlash from some users who thought it took away from IG’s main focus. While consumers like to get their inspiration from social media, it’s not yet clear if they love shopping where they scroll.
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