TikTok is launching live shopping in North America and plans to outsource its operation after the social media platform’s experiments with ecommerce in the UK struggled to take off.
According to a report from Financial Times, the short video app has been talking with California-based TalkShopLive to provide infrastructure for live shopping features on TikTok. This tech will allow creators and brands to sell goods through videos on the platform. TalkShopLive takes a 10% commission from sellers for providing its services, and TikTok is likely to cover that cost for the initial phase of the project.
Live shopping is transforming ecommerce in Asian markets but is struggling to take off in the West.
In July, TikTok abandoned live shopping in the UK after it failed to meet expectations.
A launch in the US will make it the second time TikTok has tried to launch live shopping outside Asia. However, this time will be different, as TikTok isn’t doing it alone.
The developments come as TikTok faces heightened scrutiny in the US, where politicians have raised fears that American user data is accessible by Beijing, given the platform’s Chinese owners ByteDance — concerns it denies. The Biden administration is reviewing efforts by former president Donald Trump to ban the company on national security grounds. TikTok is also working with the government on new data security practices to secure US user data.
Live shopping hasn’t taken off in North America as expected. Facebook first started testing it in 2018, but last month it announced that the company is shutting down this feature to focus on Reels. Amazon also experimented with QVC-styled livestreams from influencers prior to its Amazon Prime Day sales in July but didn’t provide any numbers about how much revenue it was able to generate from these live videos.
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