5th January 2024
TikTok is setting its sights on growing its TikTok Shop U.S. business tenfold to as much as $17.5 billion in 2024, according to a new report from Bloomberg. In addition, the company is also looking to launch TikTok Shop in Latin America soon.
TikTok Shop allows users to find and directly purchase products used in live videos, tagged in content shown on their ‘For You’ page, pinned on brand profiles or marketed in a “Shop” tab. The company officially launched TikTok Shop in the US in September 2023 and with its ambitious new growth goal, TikTok would not only be looking to take on Amazon, but also fellow Chinese-owned companies Temu and Shein, both of which have become popular in the U.S. But TikTok has something the others don’t - an extremely popular social media network that could leverage viral videos to reach buyers.
TikTok was on track to achieve around $20 billion in global gross merchandise value in 2023, with the majority of this from sales in Southeast Asia. TikTok wants to replicate that success in the U.S. and soon in Latin America too. To encourage sustained engagement within the app in the U.S., TikTok incentivizes influencers with complimentary shipping and subsidies for promoting products in their videos and live streams. The company reports that the Black Friday and Cyber Monday promotions in November led to more than 5 million new U.S. customers making purchases on the app.
Meanwhile, TikTok is adjusting its commission structure, planning to increase charges from 2% to 8% per transaction, and reducing some subsidies for merchants. Despite these adjustments, TikTok's commissions remain lower than Amazon's typical 15% seller fees.
Ads are coming to Amazon Prime Video later this month. From 29 January Prime Video users will start seeing ads unless they’ve paid an extra $2.99 per month in addition to the Amazon Prime subscription to opt-out. Amazon announced late last year that Prime Video would get "limited ads" in shows and movies in early 2024. The company hopes the change will provide an additional revenue stream and offset the investment into high-quality, "compelling content." Read more
CES (The Consumer Electronics Show) one of the biggest and buzziest tech events of the year, kicks off next week in Las Vegas and of course, it’s expected that AI will dominate the tech showcase this year. AdAge, TechCrunch and TechRadar have rounded up what to expect this year.
Facebook has begun to globally roll out a link history option as an opt-out feature, turned on by default, for Android and iOS devices. When the link history feature is on, any links tapped inside of Facebook and visited in Facebook’s mobile browser will be saved in the archives for 30 days. Links visited in chats on Messenger are not saved to link history. Read more
Microsoft’s new Copilot key is the first big change to Windows keyboards in 30 years. A new Copilot key will ship on a variety of new PCs and laptops from Microsoft’s partners, providing quick access to Microsoft’s AI-powered Windows Copilot experience straight from a keyboard button press. Read more