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What TikTok is to offer free listing and shipping for Chinese resellers on its site
Why It wants to compete with other large players in the market, such as Temu and Shein
What next It plans to launch its marketplace in North America soon after previously opening in the UK and Saudi Arabia
TikTok is offering Chinese manufacturers and exporters a way to join its growing online marketplace for free.
The move aims to disrupt the dominance of rival platforms such as Temu and Shein, potentially even undercutting Amazon.
By providing free listings, shipping, zero commissions, and warehousing, TikTok hopes to attract merchants and reshape its image as it expands its e-commerce platform.
With over a billion users, TikTok plans to handle everything from marketing to logistics for Chinese merchants, leveraging its already significant presence on mobile devices in the US.
TikTok’s e-commerce business is growing rapidly and expected to reach $20 billion in gross merchandise value this year.
UK and Saudi Arabia Online
TikTok has already launched successful marketplaces in the UK and Saudi Arabia and plans to introduce a similar service in North America. The company’s e-commerce expansion faces increased scrutiny due to its Chinese ownership, but it aims to challenge the likes of Shein, Temu, and Amazon.
TikTok Shop consists of mini-stores linked to influencer profiles, while a “Shop” tab on the main page leads to a third-party marketplace.
TikTok hopes to populate this marketplace with Chinese vendors and global brands.
While TikTok is currently waiving fees, unlike some competitors, it promises not to push merchants to sell at a loss.
The platform’s reach and engagement make it an attractive option for merchants, as it aims to break the cycle of price wars prevalent on other platforms.
Stu is a writer with a focus on forex and macroeconomic breaking news. He has worked at a major news outlet and private equity houses handling communications and public relations. Stu is also an avid day trader and keen technical analyst. When he is not writing, find him at the gym or watching Manchester United.
