Tag: tiktok

TikTok Makes It Easier to Become an Affiliate: Good News or More Trouble for Brands?

Are you tired of hearing about TikTok yet? From articles on how TikTok killed our attention span to the potential security threat leading to a ban in the US, the Chinese social media platform keeps making headlines. We already know about its growing impact on American businesses through its influencers and shopping features. Social commerce is growing year after year, and we can expect the trend to continue following the latest news: TikTok lowers the threshold for content creators to become affiliates. Let’s see what this is about and how it will impact brands and consumers.

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TikTok Getting Closer to a Ban in the US: My Top 3 Consequences for Brands

Some people say Gen Z will riot if TikTok gets banned in the US. For me, I think business owners and marketing managers have more reasons to be upset. While the major news focuses on geopolitics and the assumed threat regarding data security, I feel that the impact on US businesses is overlooked.

It would be a mistake to assume banning a Chinese app would only have positive consequences for US businesses. Keep in mind that I am not advocating for or against the ban. I understand that this is more complicated than my small area of expertise in e-commerce. But brands should be aware of the consequences of a potential ban so they can prepare for an uncertain future.

So let’s jump to the top three reasons, in no specific order, why I think banning TikTok could seriously hurt some local businesses.

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TikTok Shop Increases Referral Fees – Who Will Lose The Most?

If you’re selling on TikTok Shop, or if you consider doing it, you’ve probably heard the big news: Referral fees will increase from 2% to 8% per transaction. TikTok Shops will also cut some of the subsidies they previously offered. While some immediate reactions following the announcements were dramatic, with people claiming the death of TikTok Shop, I feel that most people still see the platform as a viable channel.

My opinion is that TikTok Shop is a unique channel, with a strong value proposition. The lower fees were a tactic to increase the number of sellers on the platform and grow the marketplace. However, it isn’t for every business and some will be more impacted by the new fees than others. I also believe that the importance of the subsidies cut was downplayed, and will have significant consequences this year.

Let’s see how these fees compare with other marketplaces and what I think will be the consequences for businesses.

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TikTok’s Logistics Network and Impact on the Competitive Environment

In my opinion, one of the main reasons behind Amazon’s success is its attractiveness for 3rd party sellers. The large amount of traffic and the easy way to generate sales (profitability is another story) certainly helped. Another big reason is their fulfillment network, notably their FBA program. When I didn’t know much about Ecommerce, I thought the idea of 3rd party logistics programs was genius and a huge opportunity for ecommerce entrepreneurs. It is no surprise that Walmart, a serious contender in the US Ecommerce space, launched their marketplace along with their WFS (Walmart Fulfillment Services) program.

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Indonesia’s Ban on Social Commerce : The Impact on Consumers and Social commerce Giants

Have you ever heard the term “TikTok brain”? Tiktok videos, reels, and other short formats are killing our attention span, and there is now a name for this phenomenon. In fact, nearly 50% of users surveyed by TikTok said that videos longer than a minute long were “stressful”. ONE minute is stressful now?! In addition to shrinking our attention spans, short videos are highly addictive, with the average TikTok user spending a whopping 95 minutes a day on the app. With this data in mind, it is no surprise that the recent TikTok ecommerce venture, TikTok Shops, is successful. But this success might be short-lived in some countries, with Indonesia very recently banning shopping transactions on social media apps.

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