TikTok Shop Transformed E-commerces and Social Media Platforms

The pandemic has transformed many aspects of our lives, including the way we shop. Technological advancements and shifts in consumer behavior have created various new business opportunities, and one of these is TikTok Shop. However, recently, TikTok Shop announced the closure of its operations, raising questions about the future of e-commerces and changes in the way we shop.

Compared to other social media platforms such as Instagram and Facebook, TikTok has proven to be more advantageous for Small and Medium Enterprises (SMEs) with limited capital. While all these platforms can reach a broad audience, most rely on paid advertising, and SMEs often lack the budget for expensive ads. This is where TikTok holds an edge. SMEs do not need to spend a significant amount on advertising to reach a wider audience. By relying on TikTok’s algorithm, SMEs can increase their exposure organically.

However, the impact of the closure of TikTok Shop has left many wondering about the future of e-commerces. Should e-commerces be concerned about changes in consumer behavior and intensified competition? Let’s explore some reasons why e-commerces needs to remain vigilant, even with the closure of TikTok Shop.

Changing Purchase Characteristics

TikTok and e-commerces have different purchase characteristics. TikTok functions as an entertainment platform where users often end up buying products on impulse. Users can easily be tempted to purchase something they see in TikTok videos without prior planning. On the other hand, e-commerce is where people come with the intent to buy products they have planned in advance.

With the closure of TikTok Shop, users accustomed to impulsive buying patterns may return to traditional e-commerce. This means e-commerce must adapt its strategies to attract consumers who are more oriented toward planning.

Intensifying Competition

Traditional e-commerce players have faced fierce competition in recent years, and with the emergence of TikTok Shop, the competition is heating up. Many online stores are trying to leverage TikTok’s appeal to reach a broader audience, creating stronger competition.

However, with the closure of TikTok Shop, e-commerce competitors must now contend with a rapidly growing business model: live commerce. Live commerce combines entertainment and direct shopping, similar to the experience offered by TikTok. This is a development that e-commerce needs to consider while striving to remain relevant and competitive in a rapidly evolving business landscape.

The Need to Download Additional Apps

One of the significant impacts of TikTok Shop’s closure is the separation of the TikTok and TikTok Shop apps. To make transactions, users now have to download an additional app, TikTok Shop, which was not previously required. This could be a barrier for some consumers who do not want to download an extra app just for shopping. Traditional e-commerce can leverage this situation by making their purchase process more accessible and user-friendly directly through their main app.

In the wake of TikTok Shop’s closure, e-commerce must not underestimate changes in consumer behavior and intensifying competition. They must remain flexible and ready to adapt their business strategies to address emerging challenges. Understanding changes in consumer purchasing behavior and identifying new opportunities are key for e-commerce to remain competitive and grow in this new era. As business players, the key to staying relevant is adapting to change while understanding consumer needs.

Read also: The Reasons Gen Z Prefers TikTok Over Google for Information

Yustika Nindy Ferdiani