TikTok Shop has emerged for many brands as a pivotal marketplace for discovery and sales.
- Some 50% of US consumers take product recommendation suggestions from influencers on TikTok Shop, according to February 2024 data from PartnerCentric.
“TikTok Shop combines the discoverability of a platform with native commerce and fulfillment,” said David Baker, chief digital officer at skincare brand Beekman 1802, which has seen huge success with TikTok as both a commerce and marketing channel. “It essentially is everything you loved about Instagram 10 years ago—before it went bad—and everything you loved and hated about Amazon in one place.”
Baker and other industry leaders advised brands on how to leverage TikTok Shop during last month’s The Lead Summit in New York City.
Creators drive sales
For many brands, creator-driven content has become the primary sales engine on TikTok Shop.
- For Beekman 1802, 60 to 80% of TikTok sales volume comes from creator partnerships, according to Baker.
- Similarly, 80% sales volume for hygiene brand Pure Daily Care’s on TikTok comes from affiliates and creators, most of whom the brand has never spoken to, according to CMO Jonathan Cohen.
“When we meet with TikTok, they are constantly pushing us, they want brands to release hundreds if not thousands of short-form videos per week,” said Cohen. “The only way is to embrace creators.”
What it means: Brands must develop systems to support and amplify creator relationships at scale.
- For example, Discord communities for creator feedback, amplifying top-performing creator content through TikTok's Spark Ads, and developing strategies to identify which products have the potential to resonate with creators and audiences can help push product sales on the platform.
TikTok demands face-forward authenticity
“On TikTok, I’ve always led with storytelling,” said Stormi Steele, CEO of Canvas Beauty, who emphasized the importance of “edutainment”—entertaining while educating about products. “I’m helping people visualize where, when, and why to use the product without selling it.”
- This approach works for Canvas because people open TikTok to consume content, not to shop. “People just want to have fun,” Steele said. “Eventually, they’ll convert.”
- 81% of TikTok shoppers think TikTok offers a view into real-life product usage through these videos, according to September 2024 data from Ipsos and TikTok.
Canvas leverages Steele as a founder to represent the face of the brand. “If you don’t have a face-forward brand, then find your face. Find someone who represents what your brand persona is,” Steele said.
What it means: Brands must adapt their content strategies to prioritize authentic storytelling and entertainment value over traditional product marketing.
Promotional pricing drives conversion
Despite the emphasis on authentic content and storytelling, promotional pricing continues to play a significant role in driving conversions on TikTok Shop.
“I really think discounting is an important component to get interest in your brand,” Cohen said. “If you don't have that pricing, then you really need the creators to express the value of your product.”
Creators themselves often prefer promoting discounted products because they increase the likelihood of conversion, directly impacting their commission earnings. This creates a cycle that reinforces the platform's discount-driven nature.
What it means: Brands must balance their pricing strategy with their positioning, recognizing that TikTok Shop currently favors promotional pricing.
TikTok Shop’s impact ripples across channels
Brands are discovering that TikTok Shop creates significant halo effects that boost performance across other sales channels.
Beekman 1802 uses marketing mix modeling to measure this impact, finding that "for every sale on TikTok, we see another sale on D2C and Amazon combined," with approximately two-thirds of those additional sales occurring on Amazon and one-third on their direct-to-consumer site, per Baker.
This makes TikTok Shop both a direct sales channel and an awareness marketing channel.
What it means: Brands should evaluate TikTok Shop's performance holistically, considering its impact across all sales channels rather than viewing it in isolation. This broader perspective may justify greater investment in the platform, even for brands that see modest direct sales through TikTok Shop itself.
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