‘A gamechanger’: 200,000 UK small businesses sign up to TikTok Shop | TikTok
It’s better known for viral dances and making hits out of forgotten songs, but social media site TikTok is becoming a force to be reckoned with as a shopping platform.
Major retailers including Marks & Spencer, Samsung, QVC, Clarks and Sainsbury’s now sell their products on the site’s e-commerce service, TikTok Shop, and to more than 200,000 small and medium-sized businesses in the UK.
TikTok Shop, which was launched in the UK in 2021, recorded its biggest sales day in the UK on Black Friday, selling 27 products per second. During Black Friday and Cyber Monday, sales increased by 50% compared to last year.
The service works by allowing brands to sell directly on TikTok through videos and livestreams with embedded links to items for sale, as well as through a separate shop tab on their profile.
A brand can publish its own content and link to products or allow influencers to promote them using affiliate links. Payment happens without you having to leave the app, and after the sale the money is split between TikTok, the seller, and any creators who helped with the app.
Sainsbury’s, one of the first major supermarkets to launch on the platform, has found success with its Tu Noel pajamas. The sponsored collaboration with influencer Rachel Spicer racked up 6.6 million views, with the pajamas selling out in less than a week.
M&S also saw strong results from TikTok Shop livestreams, which included links to featured items; a recent stream attracted 260,000 viewers and led to the sale of approximately one item every 30 seconds.
Small businesses are using this to increase their reach, especially at a time when artificial intelligence is making it even harder to appear in search results. Fat Butcher, an online meat delivery service based in Newcastle, is selling fresh turkey on the platform for the first time this year.
“Beauty brands in particular are seeing strong commercial returns,” according to Danielle Dullaghan, director of social strategy at global marketing agency Iris.
Part of TikTok Shop’s success, he says, is that it “directly impacts impulse buying behavior.”
L’ERA, the London-based jewelery brand run by Lara Mar and her daughters Talia Mar and Angele Sofia, will generate around £145,000 in revenue through TikTok this year.
“It has nearly doubled year over year, and many of our online customers first discovered us through TikTok,” says Mar.
The brand relies heavily on live shopping; It typically broadcasts three three-hour livestreams a week, increasing to six during Black Friday and Christmas periods.
TikTok customers have shown their willingness to spend, with L’ERA’s largest single order placed on the platform exceeding £1,400.
“TikTok Shop has exploded and been a game changer in terms of reach and sales for some smaller brands,” says business and social media consultant Jules Brim. “But what we don’t talk about enough is cost. It can create a race to the bottom on pricing, put pressure on small businesses to constantly produce content, and shift the focus from brand-building to following trends.”
