TikTok wants to sell you the items that are trending on its app.
The platform recently began testing a new shopping section in the UK called “Trendy Beat” that features products from popular videos, the Financial Times reported.
Currently, the new shopping tab is home to cheap items made in TikTok’s native China, including tools to extract ear wax or remove pet hair from clothing.
Until now, TikTok had allowed other sellers to flog their items through its existing marketplace, TikTok Shop, in return for a commission. But its latest feature involves it pocketing all the cash from sales as it chases retail as its next big revenue driver, after the growth of its advertising business.
The focus on affordable knick-knacks is similar to the offering from China’s Temu, which is essentially a glorified pound shop for online shopaholics. However, TikTok is hoping to usurp Temu and Chinese fast-fashion giant Shein by leaning on its treasure trove of data.
The expansion sees TikTok monitoring the products that are popping on its app to acquire or make those items itself. TikTok then heavily promotes the Trendy Beat products over rivals sellers on its app. All the items in the new section are reportedly sold by a company registered in Singapore that is owned by TikTok’s parent ByteDance.
Despite its grand ambitions, TikTok will have to be careful not to cross regulators who are already wary of its data-sharing practices.
Last December, Amazon settled an antitrust case with the EU over concerns that its proprietary data gave it an edge over competing sellers. The crux of the probe focused on whether the online shopping behemoth was using this information to craft its own products and optimise their pricing.
TikTok is no stranger to the world of online retail. Last year, it emerged that TikTok was looking to open fulfilment centres in the US to handle delivery and customer returns. The platform also has a live shopping feature and allows creators to partner with brands to promote products and earn affiliate revenue.
In addition, TikTok is already a marketing juggernaut for brands. The long list of celebrities and companies that have targeted the app’s fresh-faced users with promotional plans include Hailey Bieber and Selena Gomez’s beauty ranges; influencers such as Matilda Djerf; and luxury fashion houses such as Gucci and Louis Vuitton.
