Quick Scroll, Quick Buy: How TikTok Shop is Redefining E-Comm for Gen Z
By: Serena Muthukumarana
As I am guilty of the all too familiar before-I-sleep TikTok sessions, the whenever-I’m-free TikTok sessions, and the mindless how-did-I-end-up-on-TikTok sessions, I know how easy it is to stumble onto the app without thinking twice. Once there, it’s easy to stay. From the dance challenge videos to the latest news breakdowns, the quick snippet clips are made to spark interest and keep you scrolling.
While we visit with the intention of the “quick scroll,” we land on subtle, never-ending features such as the TikTok shop, the one-stop shop for all things TikTok trends. Users can buy anything from furniture to apparel, and with high markdowns for the advertised products, the feature is changing the advertising landscape and online shopping experience.
Launched in 2023, the TikTok shop has already made strides in sales. With sales expected to double by 2027, the store has made its mark with its advanced purchasing ease. Individual sales are expected to jump from $628 in 2023 to $1,224 by 2027. 37.4% of TikTok users in the U.S. have made at least one social e-commerce purchase in 2023, up 119% from 2021. If the rates continue to increase, social e-commerce buyers will generate billions in revenue for TikTok and its brands.
Other social media platforms like Instagram are also developing their own e-commerce space. In response Amazon is implementing personal review features such as Amazon Inspire to match the competition. Classified as a fast fashion shop, consumers make frequent purchases, knowing their products are probably not going to last a lifetime, but given the small price tags, it’s often a compelling purchase. With this logic, marketing to Gen Z is a perfect fit as they are young with the expendable income to purchase small wants, creating a clear correlation between app users and TikTok shop buyers.
With commissions and brand deals as a helpful incentive for content creators, influencers are eager to link products to their videos and live streams which allow consumers to see more personal reviews and make “more authentic” buying decisions. Beauty and health brands take up about 81% of the current TikTok shop space. Users love seeing visible results and when they spot a product where an influencer is reaching their interests, with a single click, users are directed to the, often linked, TikTok shop. Users can swiftly purchase an enticing product with a single click making this sales pipeline almost instantaneous.
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