One of Murdick’s videos posted in September has 2.5 million views and is the second-highest performing for BK Beauty in terms of sales, the brand said. The videos link to a shop where people can buy the product and Murdick gets a commission.
Also spurring BK Beauty’s investment in TikTok Shop is a slew of incentives from the platform, including TikTok paying for shipping and offering discounts to consumers. A $20 brush might retail with a TikTok discount for $7, but BK Beauty gets paid the full $20, Jauregui said.
The creator-centric nature of TikTok can help propel the success of its shopping program perhaps more than competitor Meta, where there may be fewer incentives to buy from the platform, said Matt Bahr, CEO of ecommerce tech firm Fairing, which has had a few clients report anecdotal success with TikTok Shop, including BK Beauty.
When Instagram launched shops it “didn’t have that viral component,” Bahr said. “A lot of people who are selling products via TikTok Shops are able to build those network effects instantly.”
Room to grow
But the viral nature of TikTok can be a double-edged sword. Taylor Offer, CEO of direct-to-consumer brand Feat Clothing, said that TikTok’s algorithm requires making content more often than on Meta platforms, which can be a tough cost to justify while sales are low.
“Right now, TikTok Shops is very small for us. Meta Shops is a lot more,” David Herrmann, president of Herrmann Digital said, adding that brands on average are spending 75% of their TikTok ad budgets on TikTok Shop ad units. “Our plan is to be very aggressive on TikTok Shops in the coming months. It just takes a lot of effort and time to get this set-up.”
D’Altorio said that it’s too soon to know whether his clients’ bets on TikTok Shop will pay off.
“It’s still a small percentage of the total pie,” he said. “There is a first-mover advantage and [it’s helpful to] have some early data accrue as the consumer sentiment continues to embrace this kind of transaction.”
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