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On June 8, 2024, TikTok achieved a huge milestone with its first million-dollar shopping livestream in the United States. As reported by Marketplace Pulse, the event, featuring beauty brand Canvas Beauty, was hosted by CEO Stormi Steele and lasted for six hours. It not only set a new U.S. record with $1 million in sales but also attracted a peak audience of 10,000 viewers. 

That million dollar record followed right on the heels of two more big livestream totals. The day before, Simply Mandys, another cosmetics brand, set a record by surpassing $730,000 in sales. Less than two weeks prior, Jeffree Star hosted a stream that grossed $665,000.

TikTok has set an ambitious target for its U.S. operations. According to industry experts, for 2024 they’re planning on growing their U.S. business to as much as $17.5 billion, signaling a commitment to becoming a major ecommerce player.

TikTok’s approach to online shopping is very different from what we’re used to. Instead of relying on product listings and search functionality, TikTok leverages content creation and engagement. The platform’s shopping experience is deeply integrated with its video content and live streams, creating a unique blend of entertainment and commerce.

Social Commerce for the Win

While $1 million in sales is a big win for TikTok, it should also be a call to arms to Amazon sellers that want to separate themselves from the competition. Even though social commerce in Western markets – at this point – represents a small percentage of China’s explosive live-sales events, TikTok has been doubling down on its live commerce strategy. 

The platform is actively collaborating with select creators and adjusting its algorithm to prioritize video broadcasts. The success of Canvas Beauty’s livestream demonstrates the potential of this approach.

TikTok’s strategy has cleverly positioned itself not as a direct competitor to established giants like Amazon, but as a complementary discovery engine for commerce. By focusing on entertainment-driven shopping experiences, TikTok is clearly planning on carving out its own niche in the ecommerce landscape. 

As TikTok continues to evolve its shopping features and creator partnerships, it’s going to be important to be at the head of the line. 

Here are 5 more reasons why: 

Access to a Massive and Engaged Audience

TikTok’s user base is not just large; it’s highly active and engaged. With over a billion active users worldwide, the platform offers Amazon sellers an unprecedented opportunity to expand their reach. Consider these points:

• Demographics: TikTok’s audience skews younger, with a significant portion of users under 30. This presents a unique opportunity to connect with Gen Z and younger Millennials.
• Global Reach: TikTok is available in over 150 countries and 75 languages, allowing sellers to tap into international markets.
• High Engagement Rates: According to recent statistics, users spend an average of 52 minutes per day on the app, and open it an average of 19 times daily. This level of engagement surpasses many other social media platforms.

Boost Brand Visibility and Authenticity

TikTok’s format allows for more personal and authentic content creation:

• Storytelling Opportunities: Short-form videos are perfect for sharing your brand’s story, values, and mission in an engaging way.
• Behind-the-Scenes Content: Show the human side of your business by featuring your team, production process, or day-to-day operations.
• User-Generated Content: Encourage customers to create content featuring your products, building a sense of community and trust.

Leverage Viral Potential

TikTok’s algorithm and content discovery features make it easier for content to sell directly through the platform and for it to go viral compared to other platforms:

• Shoppable Videos: Add product links directly to your TikTok content, allowing viewers to purchase items without leaving the app.
• Live Shopping: Host live streaming events where you can showcase products and interact with potential customers in real-time.
• Influencer Partnerships: Collaborate with TikTok creators to reach their established audiences and leverage their credibility.
• For You Page (FYP): TikTok’s main feed shows users content based on their interests, not just who they follow. This increases the chances of your content being seen by a wider audience.
• Hashtag Challenges: Create or participate in trending challenges to increase visibility and engagement.
• Duets and Stitches: These features allow users to interact with and build upon your content, potentially expanding your reach exponentially.

Diversify Your Marketing Strategy

Adding TikTok to your marketing mix can provide several benefits:

• Risk Mitigation: By not relying solely on Amazon or a single platform, you protect your business from potential algorithm changes or policy updates.
• Cross-Platform Promotion: Use TikTok to drive traffic to your Amazon listings or other sales channels.
• Content Repurposing: Adapt your TikTok content for use on other platforms like Instagram Reels or YouTube Shorts.

Access to Cost-Effective Advertising

TikTok’s advertising platform can be more cost-effective than traditional digital advertising:

• Lower Competition: As the platform is still growing, ad costs may be lower compared to more established platforms.
• Targeted Advertising: TikTok’s ad platform allows for precise targeting based on interests, behaviors, and demographics.
• Organic Reach: With engaging content, you can achieve significant visibility without paid promotion.

How to Get Started with TikTok Advertising

1. Create a TikTok Business Account: Begin by setting up a TikTok Business Account. This will provide you access to TikTok’s advertising tools and analytics. Make sure to complete your profile with a professional image, engaging bio, and a link to your Amazon store.
2. Define Your Advertising Goals: Clearly outline what you aim to achieve with your TikTok ads. Having clear objectives will guide your ad strategy and help measure success.
3. Understand Your Target Audience: Research TikTok’s demographics to understand who your potential customers are on the platform. Tailor your content and ads to resonate with TikTok’s highly engaged user base.
4. Create Engaging Content: TikTok thrives on creative, authentic, and engaging content. Develop short, captivating videos that showcase your products in action, tell your brand’s story, or highlight customer testimonials. 
5. Leverage TikTok’s Ad Formats: TikTok offers several ad formats, including In-Feed Ads, Branded Hashtag Challenges, and TopView Ads. Choose the format that best aligns with your goals and budget. 
6. Set Up a Campaign in TikTok Ads Manager: Use the TikTok Ads Manager to create and manage your ad campaigns. Define your campaign objective, set a budget, and schedule your ads. 
7. Monitor and Optimize Your Campaigns: Regularly review your campaign performance using TikTok’s analytics tools. Track key metrics such as impressions, clicks, and conversions. 
8. Collaborate with Influencers: Partnering with TikTok influencers can significantly boost your reach and credibility. Identify influencers who align with your brand and have a strong following among your target audience. 

Why Partnering with Canopy Management Should Be Your Next Move

For Amazon sellers aiming to expand their reach and enhance brand visibility, TikTok is a gold mine. With its massive, engaged user base and unique content-driven shopping model, the platform allows sellers to connect with new audiences in innovative ways. 

To effectively navigate this new terrain and maximize your success, consider partnering with an Amazon agency like Canopy Management. Canopy’s expertise in strategic growth planning, content optimization, and advertising management can help you seamlessly integrate TikTok into your marketing mix, ensuring you capitalize on the platform’s full potential. 

Why Canopy? 

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation