From Scrolling to Shopping

How TikTok Shop blurs the lines between content and commerce

—By Ryan Esker

In a rapidly evolving digital marketplace, TikTok has emerged as a hybrid of entertainment and e-commerce, redefining the way consumers engage with brands and products. This integration, known as TikTok Shop, has become a major player in the realm of online commerce. According to Statista, 30% of TikTok’s daily users report having used the feature, illustrating the platform’s profound influence on consumer habits and brand strategies. With over 1 billion active users as reported by Backlinko, TikTok’s vast global presence makes TikTok Shop a pivotal force in shaping the future retail and marketing landscapes, influencing how the boundaries between content and commerce are defined. 

Shop features

TikTok shop officially launched in the United States in September of 2023 for its 150 million users across the US. Seamlessly integrated into users’ “For You” page, products are advertised in the form of a normal TikTok alongside regular content. When a product pops up on the “For You” page, clicking a button brings the user to its listing on the storefront. Austin Proos, a sophomore at the University of Michigan, says, “Around 10% of the videos in my feed are for products from TikTok Shop.”

The integration of TikTok Shop represents a strategic move by TikTok to blend commerce with content, making shopping an integral part of the user experience. By utilizing the “For You” feature, TikTok personalizes shopping recommendations based on user data, which may make users more likely to engage with the storefront. Although Proos has never purchased anything from the TikTok Shop, he finds that the products recommended to him are those he would consider buying. “I get TikToks about different food items and energy drinks. Typically I would consider buying these but I can’t yet bring myself to trust the TikTok Shop.” Proos’s hesitation to make purchases through TikTok Shop highlights a possible challenge for the platform: building consumer trust. 

Shopper insights

To persuade users to engage with the TikTok Shop, the platform recently rolled out targeted coupons offering 40% off a purchase for new customers. Many users took advantage of this deal. My sister, Allison Esker, a senior at Central Michigan University, made her first purchase when she received this offer. “I saw a TikTok about a sweatshirt from TikTok Shop. It ended up being very cheap with the coupon, so I decided to purchase it.” Esker’s experience with TikTok Shop highlights a strategy by the platform to entice new users into making purchases through targeted discounts. This tactic not only helps introduce users to the shopping feature, but also aims to counter skepticism about ordering products from TikTok. Consumers would be more likely to look past any doubts they may have if they are getting a good deal. 

While these targeted offers have helped users such as Esker make their first purchase, their ability to retain customers long term has yet to be seen. Esker says she is unlikely to make another purchase on TikTok Shop without any coupons. “I can’t see myself using TikTok Shop unless there is a good deal. If it is for the same price, I would rather use more reputable options.” Her perspective highlights a potential issue for the new platform, retaining customers beyond initial welcome deals. TikTok Shop will need to find a way to keep customer loyalty beyond promotional offers, ensuring the platform can stand on its own as a reliable and preferred shopping destination. 

Creators and commerce

One way that TikTok Shop has grown its influence in the e-commerce industry is through TikTok content creators. When viewers buy a product after watching a creator advertise it, the creator receives a portion of the profit. This feature has drastically increased the amount of TikTok Shop related content displayed on the platform. According to a study conducted by Fortune, “Users interacted or engaged with 2.7% of regular videos posted by the 120 influencers tracked on the service, but only 1.4% of their Shop posts.” This gap shows that users are far less interested in TikTok Shop videos even though they are seamlessly integrated into their feeds. By offering commission to creators, TikTok is essentially able to create advertisements that are disguised as regular content. 

While this strategy has been effective in promoting products on TikTok Shop, some users are concerned the platform is moving too far away from its original short-form viral video format. Nathan Hood, a student at Eastern Michigan University studying education, says he increasingly sees less real content and more advertisements. “I am always getting TikToks of people telling me how much I need something on the TikTok Shop. It is always annoying, especially when a seemingly regular video ends up just being a promotion for a product.” Hood echoes a growing sentiment among users who are concerned about the balance between authentic content and promotional content. TikTok will have to carefully implement its new e-commerce experience to preserve the authentic user experience that allowed TikTok to rise in popularity. 

Early success

According to Business of Apps, TikTok was the highest grossing app of 2023, generating $2.7 billion in revenue. While this includes revenue from both the content side, and the commerce side of the application, it is apparent that TikTok Shop has significantly contributed to this financial success. Much of this success can be attributed to the seamless integration of content and commerce within the application. As reported by Statista, 71.2% of TikTok users use the shop feature after seeing it in their feed, with 45% shopping from paid influencer recommendations.

As TikTok Shop blurs the boundaries between entertainment and commerce, its subtle shift towards commercialization in our daily content consumption demands our attention. As Nathan Hood observed, “TikTok used to be about trends. Now it is about transactions.” This sentiment captures the delicate balance that TikTok must navigate in order to maintain its vibrant community while also capitalizing on its commercial potential. As we scroll through our feeds, it is essential to stay mindful of this transformation and understand each clip we encounter is more than just entertainment—it is the new forefront of e-commerce. 

Feature Photo of TikTok App by Solen Feyissa via Unsplash