- TikTok partners with Shopify to assist US merchants with advertising on the app.
- This continued push toward social commerce comes ahead of a holiday season when consumers will be increasingly turning to social media for shopping.
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TikTok announced a new partnership with ecommerce platform Shopify to assist US merchants with advertising on the app, giving them access to core functions of the TikTok For Business Ads Manager without requiring them to leave Shopify's dashboard.
The merchants can create and manage TikTok campaigns, using features like the video app's creative tools and one-click Ads Pixel, and TikTok is offering merchants $300 in ad credits to help interested merchants get started.
The partnership is a key piece of TikTok's developing social commerce strategy. It helps TikTok build a foundation for future ecommerce activity on the app by creating a pathway to integrating Shopify's back-end functions, which include managing payments and logistics for online retailers.
TikTok also mentioned that the partnership will eventually expand to include in-app selling opportunities for Shopify merchants, which could play into TikTok's potential deal with Walmart. The retailer, which tentatively agreed to acquire a 7.5% stake in TikTok, recently announced its own partnership with Shopify that integrates Shopify sellers with Walmart's online marketplace—and TikTok's social commerce strategy could incorporate Walmart online marketplace in some way.
This continued push toward social commerce comes ahead of a holiday season when consumers will be increasingly turning to social media for shopping. As we move into November, consumers have said they plan to purchase holiday gifts through social media amid a broader consumer shift to digital shopping this season.
Almost one-fourth (22%) of US consumers surveyed by Salesforce in May 2020 said they were more interested in holiday shopping via social media than they were last year. And according to "The eMarketer Ecommerce Survey" conducted by Bizrate Insights and published in September, the share of US consumers who used social commerce rose from 24% in December 2019 to 36% in August 2020, likely bolstered by the pandemic and the introduction of new social commerce opportunities like Facebook Shops.
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