TikTok Expands E-Commerce Efforts with New Shopping Platform
TikTok is expanding into e-commerce by introducing TikTok Shop Mall, a platform offering a range of branded products.
This initiative is part of TikTok Shop and aims to tap into Thailand's burgeoning $11.6 billion e-commerce market, challenging established platforms like Lazada and Shopee. Since its launch, TikTok Shop Mall has attracted 400 sellers, listed over 1,000 products, and processed 100,000 orders.
Kornnikar Niwatsaiwong, TikTok Shop Thailand's head of FMCG and e-commerce, envisions rapid growth through content-driven commerce or 'shoppertainment'. The Boston Consulting Group predicts that Thailand's shoppertainment sector will rise to $12.4 billion by 2025, a 54% increase from 2022.
TikTok boasts a robust ecosystem with a vast creator community and high engagement in e-commerce and social commerce. TikTok Shop Mall focuses on offering an assortment from leading brands, ensuring authentic products with a 15-day return policy and free shipping for a trustworthy shopping experience.
Research indicates that 81% of consumers are willing to pay more for brand assurance, and 87% prefer buying from certified stores. Popular categories include fashion, beauty, food and beverages, electronics, and household items.
Projections for Thailand's e-commerce market in 2024 are set at $11.6 billion, with a predicted average growth rate of 15.4% from 2024 to 2027. Sellers in TikTok Shop Mall benefit from visibility boosts and participation in exclusive brand campaigns, with a commission fee of 4-6% based on product categories.
TikTok Shop, housing 2.4 million sellers, 99% of whom are local, aims to attract up to 5,000 brands. It primarily serves users aged 18-34 and is transitioning to a local entity, sparing customers from a 1% foreign currency conversion fee.
This fee currently applies to Thai credit card holders making purchases from abroad, but TikTok Shop's local registration will eliminate this charge.
Kornnikar Niwatsaiwong, TikTok Shop Thailand's head of FMCG and e-commerce, envisions rapid growth through content-driven commerce or 'shoppertainment'. The Boston Consulting Group predicts that Thailand's shoppertainment sector will rise to $12.4 billion by 2025, a 54% increase from 2022.
TikTok boasts a robust ecosystem with a vast creator community and high engagement in e-commerce and social commerce. TikTok Shop Mall focuses on offering an assortment from leading brands, ensuring authentic products with a 15-day return policy and free shipping for a trustworthy shopping experience.
Research indicates that 81% of consumers are willing to pay more for brand assurance, and 87% prefer buying from certified stores. Popular categories include fashion, beauty, food and beverages, electronics, and household items.
Projections for Thailand's e-commerce market in 2024 are set at $11.6 billion, with a predicted average growth rate of 15.4% from 2024 to 2027. Sellers in TikTok Shop Mall benefit from visibility boosts and participation in exclusive brand campaigns, with a commission fee of 4-6% based on product categories.
TikTok Shop, housing 2.4 million sellers, 99% of whom are local, aims to attract up to 5,000 brands. It primarily serves users aged 18-34 and is transitioning to a local entity, sparing customers from a 1% foreign currency conversion fee.
This fee currently applies to Thai credit card holders making purchases from abroad, but TikTok Shop's local registration will eliminate this charge.
