TikTok Turns to Third Parties to Boost Lagging eCommerce

To further expand and improve its new eCommerce platform, social media company TikTok is bringing in tech startups with experience in optimizing digital commerce platforms.

In a Financial Times report on Saturday (Nov. 26), it was found that TikTok’s recent shift into eCommerce has been met with problems, including brands abandoning the platform after sales did not meet expectations.

Users can access TikTok Shop, the social media platform’s eCommerce space, to purchase items shown in ads on the app directly.

But according to the report, customers have been complaining about the new service, citing shipping delays and being sold counterfeit products as chief concerns.

So, the company has made the decision to bring in outside tech companies like ChannelEngine, TalkShopLive and YunExpress to fix these issues and expand the number of buyers and sellers using TikTok’s eCommerce tools.

The service was introduced in the U.S. on Nov. 11, inviting select U.S. businesses to participate in the initiative at the time.

By addressing the issues with TikTok Shop in the early stages of its introduction internationally, the company is setting itself up for success in the growing trend of users spending their money more and more at eCommerce shops.

According to the June PYMNTS report “Digital Economy Payments: Payment Method Diversification,” about 26% of consumers polled reported making an online purchase via a mobile device on their most recent shopping experience for non-grocery retail goods.

Since then, interest in eCommerce shopping has only gained momentum, and by reaching consumers on social media platforms, digital retail businesses have an opportunity to tap into a new demographic of customers.