Why Brands Should Think Twice About Going All-In on TikTok Shop

As social media platforms like TikTok increasingly integrate shopping features, many brands are faced with a critical question: Should we fully invest in TikTok Shop or continue focusing on our website-based e-commerce? 

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With TikTok’s growing popularity and seamless shopping experience, it’s tempting to put all your efforts into social commerce. However, despite the buzz around social platforms like TikTok Shop, the reality is that website-based shopping still dominates the e-commerce landscape.

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Let’s dive into why this is the case, and why brands need to carefully consider the broader e-commerce ecosystem before making social commerce their primary sales channel.

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TikTok Shop: The New Kid on the Block

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TikTok has taken the world by storm, attracting millions of active users who engage with videos, trends, and influencers. During Black Friday 2024, TikTok Shop generated a respectable $100 million in GMV. However, in the same period, Shopify alone generated over $5 billion in GMV, highlighting a key distinction: while TikTok Shop is growing, it still represents only 2% of Shopify’s GMV and 1% of total Black Friday online sales.

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Despite its rapid growth, TikTok Shop’s influence remains limited, particularly when compared to established e-commerce platforms that have proven track records in driving sales and fostering customer trust.

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Website-Based Shopping: Still the Gold Standard for E-Commerce

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So why does website-based shopping continue to dominate, even with the rise of social platforms like TikTok? Here are some of the critical reasons:

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1. Control Over Customer Experience: 

• Websites provide brands with the ability to fully customize the shopping experience. From personalized recommendations to detailed product descriptions, websites allow brands to craft an immersive and tailored experience that maximizes conversions. 
• Social media platforms, in contrast, offer limited control, often forcing brands to fit their offering within the constraints of the platform’s design and user flow.

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2. Trust and Security: 

• Consumers generally feel more comfortable making purchases on trusted websites. Platforms like Shopify, Amazon, and even brand-owned websites are associated with security, reliability, and clear customer service protocols. 
• Social platforms like TikTok, while excellent for engagement and brand discovery, are still viewed as entertainment-first environments, and shoppers may be less inclined to make purchases directly within them.

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3. Higher Conversion Rates: 

• Data consistently shows that website-based shopping converts better than social commerce. 
• While social media platforms are excellent for creating awareness and engagement, they typically don’t have the same sales-oriented functionality that a well-designed website provides. Websites can focus solely on conversion optimization, leading to better ROI for brands.

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The Firework Experience: What We’ve Learned About Social Commerce

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At Firework, we have extensive experience working with brands on livestreaming and e-commerce. During this holiday season, we conducted livestreams on both TikTok Live and Amazon Live for our clients. While our clients collectively generated over $14 million in GMV, we saw close to zero direct sales from TikTok Live and Amazon Live.

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This real-world data underscores a critical point: social commerce, while exciting, has limitations when it comes to driving actual sales. While social platforms like TikTok excel at generating buzz, they don’t yet match the conversion rates and customer trust of traditional e-commerce websites.

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Conclusion: An Omnichannel Approach is Key

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The rise of TikTok Shop and other social commerce features is undeniable, but website-based shopping remains the cornerstone of e-commerce. While social media platforms can be powerful tools for engagement and brand awareness, they are not yet a replacement for the robust, reliable shopping experiences that websites provide.

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For brands looking to thrive in today’s competitive landscape, the key is to maintain an omnichannel strategy – leveraging social platforms for awareness and traffic, but ensuring that your website is the primary driver of conversions and revenue.

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At Firework, we specialize in helping brands elevate their digital presence through high-impact video solutions that drive engagement and conversions across multiple channels. Our expertise lies in livestreaming, shoppable videos, and interactive content on websites, empowering brands to create immersive experiences that resonate with consumers.

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Ready to harness the power of video to transform your e-commerce strategy? Let’s connect and explore how we can help you boost engagement, enhance customer experiences, and maximize your sales potential.

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