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5 ways TikTok taps into online shopping鈥攁nd more revenue鈥攐n its platform

路Bekah Wright

Future Publishing // Getty Images
Future Publishing // Getty Images

The creator economy is here, thanks to social media platforms like TikTok, Facebook, and Instagram. Now, businesses, brands, and influencers are taking to social media with its far-reaching and lucrative impact, while the e-commerce umbrella expands to include social media marketing and social commerce.

Just how lucrative is the creator economy? Social commerce will be a $79.64 billion industry in the U.S. by 2025, according to an聽 report. E-commerce sales worldwide will reach $5 trillion by the end of this year and $6 trillion by 2024, according to . As for TikTok鈥檚 parent company ByteDance, it鈥檚 charging toward a聽聽in e-commerce spending this year.

With TikTok getting a cut of each sale made on its platform, it鈥檚 easy to understand why TikTok and other social media platforms are promoting this content- and community-driven entrepreneurship. To make product discovery and in-app shopping accessible to users, the platform now offers a suite of advertising tools.

researched how TikTok is changing the creator economy landscape and found five ways the platform has connected the world of online shopping with businesses, brands, entrepreneurs, and influencers.

A phone open to the Shopify login screen

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Built-in shopping features

The hashtag #TikTokMadeMeBuyIt has more than 5 billion views. This word-of-mouth tactic highlights some of the hottest items TikTok users have discovered on the social media platform. E-commerce via TikTok is constantly gaining traction, and the platform has responded with various elements, including聽. Businesses have access to a full-service suite of commerce solutions, including advertising tools, product upload, point of purchase, shipping, and fulfillment.

Another great feature for brands working with third-party partners is the TikTok Shopping API (see Slide 6 below), a shopping tab for business profiles that connects product catalogs via TikTok and creates聽. The third-party partners supply聽backend tools and support. Several partners already work with TikTok, including聽Shopify (U.S., U.K., and Canada), Square, Ecwid, and PrestaShop. Wix, Shopline, OpenCart, and Base are expected to join soon.

Some of these partnerships have proven to be successful. On Shopify, installs increased by 76% from February 2020 to February 2021 across its commerce channels, according to聽.

A livestreamer selling handbags via TikTok

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Live shopping events

Seeing organic content about products fires up enthusiasm. TikTok鈥檚聽 component is all about bonding, informing, and engaging with customers in real time. Delivering information or answering questions on the spot can be that subtle push that lands a sale. Additionally, brands learn about their customers. Shopping fans should look out for聽 (think back-to-school deals, Black Friday, etc.), replete with influencers, music, and interactive entertainment, geared toward introducing products and shopping.

A screen showing TikTok鈥檚 ad management system

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E-commerce ads

罢丑别谤别鈥檚 on TikTok: In-Feed, Collection, Brand Takeover, TopView, Branded Hashtag Challenge, and Branded Effects.

In-Feed ads appear between聽videos in TikTok users鈥� For You feeds and can be up to 60 seconds long. Multiple call-to-action buttons direct visitors to external landing pages, downloads, or a website page. Guests can also comment and share through In-Feed ads.

Collection Ads are product cards that can be used with In-Feed ads and are ideal for promoting limited-time sales and offers, top sellers, and new launches. Users can tap on items featured on the card and be directed to a gallery page to make a purchase.

Brand Takeover ads are fullscreen, fast (three to five seconds long), high impact messaging that appears via videos immediately upon opening TikTok. They can also appear on the For You page as聽still images, GIFs, or videos. The fullscreen component makes them easy to use, allowing for聽moving between internal and external landing pages, including those leading to聽Hashtag Challenges. Brand Takeover ads are attractive for businesses looking for high reach and聽exclusivity; users won鈥檛 see any other Brand Takeover ads the day they鈥檙e featured.

Building on Branded Takeovers, TopView ads can be up to 60 seconds long and are the first in-feed post that appears聽three聽seconds in at the top of the For You feed. They鈥檙e touted for their immersive viewing experience with no other competing content.

Branded Hashtag Challenges is a three-pronged approach for businesses to interact with potential customers. They initially appear as video ads in In-Feed placements, alerting users to the challenge. On the Discover page, a featured banner alerts users to the landing page where the challenge is taking place. There, user-generated content with the specified hashtag appears. The sense of fun and collaboration that result from Branded Hashtag Challenges lends to their popularity. They also generate massive product-brand awareness.

Branded Effects further up the ante and can be used with Branded Hashtag Challenges. They pull users into ad content through shareable branded stickers, augmented reality, or AR, filters, lenses, and effects for videos. Branded Effects ads can be live for up to 10 days.

A laptop computer open to Zapier, one of TikTok's partners for lead generation

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Lead generation tools

TikTok鈥檚 lead generation tools focus on growing a customer base and maintaining it through customer relationship management, or CRM. TikTok鈥檚 lead generation tools, found in in-feed ads, help businesses connect and stay in touch with clients. Additionally, lead generation tools provide a form for securely sharing contact information in real time with no downloading required. Such elements are particularly beneficial for businesses with long sales cycles, such as autos and real estate.

To ensure seamless and secure interactions between businesses and clients, TikTok has partnered with LeadsBridge and Zapier. provides more than 380 tools for CRM that connect, automate, and sync leads, plus track offline data. allows multiple apps to communicate with one another, allowing businesses to transfer leads from TikTok into their CRM and schedule immediate follow-ups.

An influencer does his makeup while sharing products with his viewers

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Influencer-focused API

Back in 2019, TikTok Creative Marketplace offered a way for marketers to uncover talent that could be influencers for their brand. Through TCM, businesses could create and manage brand campaigns and track their performance.

TikTok鈥檚 application programming interface, or API,聽takes this a step further, providing data that allows users to dig into data on everything from audience demographics to real-time campaign reporting, according to . This information makes it easier for outside developers, businesses, brands, and influencer agencies to work directly with talent.