• TikTok is testing an early-stage feature to automatically recognise and link products in videos.
  • TikTok is making efforts to expand its e-commerce presence and address logistical challenges to enhance user experience globally.
  • TikTok aims to achieve $17.5 billion in sales in the United States by 2024.

Short video platform TikTok is testing a new feature—automatic recognition of products in platform videos, providing a link to “Find Similar Products in the TikTok Shop.” This feature is currently in the early testing phase. As early as November last year, users shared videos containing the “Find Similar Products in the TikTok Shop” button. TikTok confirmed testing this feature with a small number of users in the United States and the United Kingdom. However, some users reported having product links added to their videos without their knowledge.

The new feature is at its early stage

A few months ago, TikTok Shop launched in the United States, allowing creators to add product links in videos. Bloomberg notes that currently, influencers and brands need TikTok approval to tag products in videos, but the new feature could potentially extend this to all videos.

Regarding this technology, TikTok is not the pioneer; competitors like Pinterest have shopping recommendation features, inviting users to “View Similar Products” in specific posts. Additionally, in Google Lens and the recently launched Circle to Search feature, shopping is a key application, helping people identify fashion accessories and providing purchase links.

However, Bloomberg points out that TikTok’s new tool still needs improvement in accuracy. For example, in a video of a woman grinding stones, the tool provided links to buy a gold ring and fake nails, which were clearly unrelated to the video content.

TikTok is building up its online shopping empire

In recent years, the rise of social commerce has changed consumer shopping habits, with more consumers discovering and purchasing products through social media platforms. With TikTok’s massive global user base and highly active community, it has become an important platform for brands and creators to promote product sales. With TikTok’s potential to smoothly cover all posts with shopping features, it would undoubtedly bring more business opportunities for platform users. Whether it’s regular users’ daily shares or brand and creator promotional content, adding product links or collaborating with brands for product promotion could lead to potential earnings. This, in turn, enhances the shopping experience by providing authentic user shares in search results, rather than just sponsored content from influencers.

Currently, the e-commerce industry remains a lucrative track. For TikTok, facing fierce competition in this vast opportunity, the key is to secure more market share in the global e-commerce market. TikTok has invested considerable effort in its e-commerce business, with the testing of shopping features being just one aspect. In addition, to ensure the long-term and sustainable development of its e-commerce business, TikTok is actively working to address its own shortcomings.

For instance, in terms of logistics, as a newcomer to the e-commerce track, TikTok’s logistics system and various infrastructure may struggle to keep up with its rapid expansion. Considering this, TikTok started building its own logistics empire, reaching a partnership with the Royal Mail in late November, allowing TikTok Shop platform merchants to integrate Royal Mail’s Click&Drop with their TikTok Shop accounts. Through this collaboration, TikTok Shop and the Royal Mail will jointly launch a new international express delivery service, leveraging each other’s strengths to achieve fast and accurate delivery of packages.

Furthermore, to further enhance the platform’s business ecosystem and continuously provide consumers with quality assured products, TikTok Shop announced the introduction of the “Full Escrow Guarantee Policy” for all fully managed business sellers starting from January 18, 2024. Sellers found in violation may face additional charges or penalty deductions from their escrow funds.

It is worth noting that, while improving the platform’s e-commerce business system and various functionalities, TikTok is not slowing down and continues to move forward. The platform is planning to include the Latin American market in its business map, possibly launching TikTok Shop e-commerce services in the coming months.

TikTok aims to achieve $17.5B in sales in the US by 2024

Last year, TikTok Shop officially launched in the United States, participating in Black Friday sales for the first time, with over 5 million consumers making purchases on TikTok Shop during the Black Friday period. According to FastMoss data, on November 24, during the Black Friday promotion, TikTok Shop’s single-day GMV exceeded $33 million in the U.S. The United States, with its highest number of TikTok users, represents a crucial market for TikTok’s e-commerce endeavours. According to demandsage data, TikTok reached over 160 million MAU in the United States last year, approaching 45% of the total U.S. population. In conclusion, TikTok’s goal is to achieve $17.5 billion in sales in the United States by 2024.

Also read: TikTok Sets Up Massive Black Friday Sale Vs. Giant Rivals