As the days grow shorter and the temperature drops, retailers are already gearing up for the upcoming holiday season. As always Black Friday is at the top of their priorities. This year, a new player is entering the Black Friday arena with a bang – none other than the popular social media platform, TikTok.
Tiktok to Subsidize Sellers for More Price Drops
TikTok has recently rolled out its highly-anticipated Shop marketplace tab in the United States– a move that mimics the ecommerce examples of leaders like Facebook and Instagram. To celebrate its entry into the online shopping frenzy, TikTok plans huge Black Friday discounts via its Shop tab, starting late October. TikTok is even willing to subsidize these discounts for merchants on its platform, covering as much as 50% of the total cost.
Free Shipping, Too
TikTok’s Black Friday extravaganza is set to kick off on October 27th, running through to November 30th. The official Black Friday sale is scheduled to commence at 8 p.m. Eastern Time on November 23rd, with Cyber Monday deals available from November 28th to November 30th.
TikTok’s entry into the holiday shopping season follows a strong launch of its Shop tab in the U.S. To entice early customers, TikTok offered free shipping and 20% off coupons ahead of the Shop tab’s official debut.
To drive its Black Friday campaign further, TikTok has reportedly recruited talent from established retailers such as Temu and Shein to serve as order and warehouse managers.
Competing with Giants as the Motivation
TikTok’s strategy to fund Black Friday discounts is aimed squarely at competing with e-commerce giants like Amazon. TikTok hopes to capture the attention of American holiday shoppers by offering massive discounts starting in late October. These shoppers traditionally flock to retailers offering deep discounts during the Thanksgiving holiday season.
A spokesperson for TikTok has confirmed these plans. TikTok’s recent introduction of the TikTok Shop in the U.S. is a logic next-step in its ecommerce plans.
This new marketplace offers a platform for sellers, utilizing TikTok’s own fulfillment centers for product storage and shipment. Additionally, TikTok is launching an affiliate program, enabling creators to sell products directly through their videos.
With ambitions to move a staggering $20 billion worth of products globally this year, TikTok’s entry into the holiday shopping season could be their first big step. In the U.S. alone, online shoppers spent over $20 billion during Black Friday and Cyber Monday last year, making it a crucial battleground for e-commerce platforms.
As Black Friday approaches, TikTok is looking to be a formidable force in online retail. We’ll have to see how the established giants react.
