A year after it was launched, TikTok Shop, the e-commerce arm of the mobile video platform TikTok, has posted a growth of 117% in the last six months. TikTok added that there was a 53% year-on-year increase in sellers who quickly achieved breakeven status in the same period and are poised for more long-term success.
Small and medium businesses found an alternative to other e-commerce platforms to increase their visibility and expand their customer base.
Based on its data, the top 5 categories that have flourished in TikTok Shop Philippines are Beauty and Personal Care, Womenswear, Menswear and Undergarments, Shoes, Phones and Electronics. These categories experience a steady increase in the number of monthly purchasers.
SY Glow ventured into TikTok Shop at the onset of the COVID-19 pandemic. The brand generated its highest revenue of $803,000 in April 2023, prompting an expansion of its warehouses across Luzon. SY Glow is able to share its found success from the TikTok Shop by holding charity events and providing an extra source of income to those in need, especially working moms and students.
Supporting local businesses
To further support local SMBs, TikTok Shop drew nearly 500 creators, personalities, brands, and agencies who are on TikTok to its first Learning Summit in February 2023. TikTok Shop actively engages with the business community through various education and training programs, including participating in business expositions and roadshows to share insights about Shoppertainment and other opportunities TikTok Shop presents for brands and businesses.
TikTok Shop has also onboarded local farmers and agropreneurs through its BuyLocal Bazaar, in partnership with PLDT-Smart and the Department of Agriculture, to promote homegrown goods. Aimed to support their livelihood, the BuyLocal Bazaar empowers them to gain direct access to consumers and expand their revenue opportunities by onboarding them onto TikTok Shop.
TikTok Shop has forged partnerships with official brands and implemented strict policies and guidelines for merchants, further enhancing its commitment to safe transactions and the authenticity of products. These measures ensure that customers can shop with confidence and trust the integrity of the products available on the platform.
TikTok Shop is also focused on introducing innovative features such as the TikTok Shopping Center, which serves to help customers discover products and brands, and at the same time provide a space for sellers to foster genuine connections with them. By integrating sale campaigns such as monthly double day, bimonthly payday, Super Brand Day, and weekly sale Friday FriYAY, sellers are able to leverage the Shopping Center in driving sales and maximizing customer engagement.