TikTok Shop: The new dimension of online shopping in Germany?

When it comes to TikTok, many people think of dance videos, creative content or funny short videos on the video platform. However, the social media app has long been one of the most popular platforms for social media users in Germany. For example, 20.9 million people use use the app at least once a month - and the trend is rising. This makes it all the more relevant for online retailers. Also because they already have an integrated shopping function in the USA, the UK and several Asian countries. successfully offers. The TikTok Shop allows users to purchase products with just a few clicks. Product selection and payment processing take place entirely in the app, without redirecting users to external sites. The successful concept is set to launch in Germany this year. But how exactly does the e-shop work? And how can online retailers best prepare for it? We provide you with a brief and compact summary of the answers.

Faster, simpler, trendier: the TikTok store concept

TikTok Shop is an integrated shopping function within the TikTok app. Users can discover and buy products directly in videos and live streams without having to leave the app. This enables online retailers to offer their customers a seamless shopping experience and, in the best case scenario, combine product discovery with entertainment. And that is precisely the key: Because TikTok Shop does not resemble the classic website-based e-shops that people are used to. The social media store only unfolds its potential when creators present and advertise the products in their videos. Similar to the Live TV shopping the products are presented in videos and the link to the product page in the connected store is placed directly in the video. Users do not have to leave the app for the rest of the shopping process; they can complete the purchase directly with the payment and delivery information stored in their TikTok account, similar to an e-wallet.

Theoretically, it is also possible to place the products in the classic way in a product overview with a link in the biography, but the effect of this method would fall short and the potential of the app would not be fully exploited. TikTok thrives on viral videos and impressions - a skillful placement through influencer or creator marketing therefore makes the most sense.

From trend to sales channel: What are the benefits of the TikTok hype?

The advantages of the TikTok Shop are manifold. What is certain is that a successful integration in the app opens up another sales channel for your online store and possibly also presents a new target group. We have summarized the most important advantages for you here:

• Fast and seamless shopping experience: Users can discover and buy products directly in the app without having to leave the app.
• Authentic product presentation: Videos and livestreams offer an authentic and appealing way to present products. Livestreams of product tests can also increase trust in your brand.
• Encourage impulse purchases: The direct purchase option in the app with just a few clicks encourages impulse purchases.
• Trend-based marketing: TikTok is known for trends and challenges. Retailers can use these trends to promote their products in a creative and entertaining way.
• Extended range: With over 1.56 billion active users worldwide - of which over 20 million are in Germany - online retailers can reach a new target group, increase their brand awareness and establish an extra sales channel.

In summary, the TikTok Shop offers some interesting aspects and advantages. Used correctly, it opens up a completely new sales channel for online retailers in Germany and the opportunity to expand or change your marketing strategy. fynax head Saravanan Sundaram assesses the development of the TikTok Shop as follows:

"TikTok Shop offers an interesting opportunity for online retailers to reach a new customer base and sell their products. However, it is important to know the challenges and develop a strategy to stand out from the competition."

Saravanan Sundaram, Head of E-Commerce at fynax

But what are these challenges? Even though TikTok Shop offers many important advantages, online retailers need to keep in mind that the app mainly appeals to a specific age and target group. The majority of TikTok users are young, so products and marketing must be geared and tailored to this target group.

You should also be prepared for a high level of competition even before the official launch of the store in Germany. This is another reason why it is all the more important to develop your marketing strategy in advance in order to stand out from the competition and offer good content. Keyword content: In order to play the algorithm of the social media application correctly and position your store well, online retailers must continuously produce new videos and live streams. This is the only way your content will be played out to users.

Conclusion:

TikTok Shop is a new and promising tool for online retailers that has great potential in Germany. With the right strategy, it can be an effective way to increase reach, boost conversion rates and maximize sales. However, whether TikTok Shop is also suitable for your products or your online store depends on various factors, such as your target group, the product range and your marketing resources.