TikTok continues to push ahead with its live-stream commerce initiatives

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While user interest thus far has been relatively low, TikTok continues to push ahead with its live-stream commerce initiatives, in the hopes that it can replicate the success that it’s seen with such in China and in other markets around the world.

TikTok has been testing live shopping in the UK since late last year, starting with a multi-brand event called “On Trend” last December. But the FT reported that those shopping livestreams haven’t drawn big audiences and haven’t sparked many sales, and some of the creators involved in early TikTok Shop projects have dropped out altogether. TikTok had been planning to roll out Shop in Germany, France, Italy, and Spain by now, and was hoping to launch in the US later this year, but now told the FT that it is currently focused solely on making the product a success in the UK. It’s also live in several countries in Asia, where the concept is more mature.

Today, the most relevant country in this industry is China, where this modality is responsible for 10% of total e-commerce sales in the country.

TikTok started offering eCommerce features in early 2021 when they announced their partnership with Shopify, allowing business accounts to add their catalogs to a tab on their profiles. Additionally, the social network has been testing live shopping in the UK since last year, making it its first market outside of Asia to test the feature.

The challenge for TikTok is that it can’t insert pre and mid-roll ads into its short video clips, which makes creator revenue share more difficult, as it can’t then directly attribute each ad to the relative performance of a creators’ clip.

That’s not to say that TikTok’s not making money – TikTok brought in $990 million in revenue in Europe alone last year. But without a system to pass on a relevant percentage of that income to creators, eventually, questions will get asked, and like Vine before it, the top stars will want to know why TikTok is making billions on the back of their videos, while they’re fed comparatively tiny amounts from the same.

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