TikTok to handle storage, delivery for new e-commerce feature

Social media platform TikTok is implementing logistics services for its new e-commerce feature in the hopes of attracting more sellers.

Earlier this year, the company introduced TikTok Shop, an in-app shopping experience allowing creators and other merchants to sell items to users without needing external links. The service has so far received mixed reviews from buyers and sellers alike, with many expressing concerns about low-quality products, scams, and copyright infringements. However, the social media platform hopes to prove its capabilities as an e-commerce powerhouse by taking on the burdens of storage and shipping.

Similar to Amazon, TikTok is putting together a system of warehouses and delivery services, reducing barriers to entry for small businesses and independent sellers. Unlike the digital retail giant, however, the video-sharing platform has opted to use third-party providers to support its e-commerce operations rather than building its own packaging infrastructure. Companies such as ShipBob and Newegg have been contracted to handle storage and distribution.

TikTok’s primary goal is to improve the value of its product offerings. Attracting more merchants to its site by making it easier to sell may help drive sales and improve its credibility as an e-commerce provider. However, the core issues with its digital retail services, lack of quality and vulnerability to scams, will need solutions beyond a simple logistics network, especially one it does not have direct control over. However, for those looking to become merchants on TikTok Shop, now is the perfect time to start. By creating an account, not only do small business owners have the ability to access the social media platform’s massive and highly engaged user base, but they also have the ability to market their products in collaboration with content creators already on the app, without asking consumers to navigate to a separate website or platform.