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TikTok is set to challenge retail giants with its new marketplace. From October 27th to November 30th, the platform will launch a Black Friday program, offering consumers steep discounts of up to 50%, all subsidized by TikTok.
According to Bloomberg News, internal documents reveal that to bolster its online marketplace, TikTok Shop, the company aims to tap into the lucrative holiday shopping season. TikTok seeks to establish its presence among US shoppers who flock to retailers for Black Friday and Cyber Monday deals. TikTok plans to entice holiday shoppers and gain a foothold in the US market by subsidizing significant discounts.
A TikTok spokesperson has confirmed these plans, with official Black Friday deals starting at 8 PM on November 23rd. The Cyber Monday sale will run from November 28th to November 30th. TikTok hopes to capture a share of the $20 billion worth of products sold during Black Friday and Cyber Monday last year by offering heavy discounts.
Recently launched, TikTok Shop provides sellers with fulfillment centers for storing and shipping their products. Creators who sell products through their videos can participate in the affiliate program, earning commissions for driving sales. TikTok aims to facilitate $20 billion worth of transactions globally this year.
Having tested its shopping platform last year, TikTok is now targeting its 150 million American users. The app's For You feed will showcase shoppable videos and livestreams, allowing brands, merchants, and creators to sell directly through TikTok's platform. Users can browse product tiles, read reviews, and make purchases seamlessly.
Deloitte projects that consumers will spend up to $284 billion during this year's holiday season. With TikTok's entry into the competitive holiday shopping market, the battle for consumer spending is heating up. As TikTok continues to roll out its innovative shopping features, how this disruptor will fare against industry behemoths Amazon and Walmart remains to be seen.
Photo: Solen Feyissa/Unsplash
