As the end-of-year shopping season in the U.S. approaches, TikTok, which recently launched its e-commerce venture in the country, is gearing up to make a splash with promotional campaigns, firing the opening salvo in the retail price war.
On September 16, media outlets reported that TikTok, the international version of Douyin, plans to kick off a month-long massive promotional campaign at the end of October. The aim is to offer substantial holiday discounts to attract American consumers, whose purchasing power has been eroded by high inflation.
The same reports, citing a document, mentioned that TikTok is offering subsidies of up to 50% in discounts to entice merchants to participate in its Black Friday event. This event is slated to start on October 27 and run through November 30.
This week, TikTok officially launched its e-commerce platform in the U.S., dubbed "TikTok Shop." Features of this platform include in-feed video shopping, product displays, merchant tags, affiliate programs, merchant advertisements, and secure checkout options.
According to the logistics solution proposed by TikTok, TikTok Shop will handle inventory, selection, and packaging of products, subsequently delivering the merchants' products to customers.
Previous reports suggested that TikTok's foray into e-commerce aims to expand its seller ecosystem, earn more profits from its popular videos, and diversify beyond its advertising business. This move comes as another challenge for Amazon, following the rise of PDD Holdings' Temu and fast-fashion retailer Shein in the U.S. market.
Reportedly, TikTok's goal is to double its total merchandise transaction volume, aiming to increase from the registered amount of just under $50 billion in 2022 to $200 billion in 2023.