The news: TikTok Shop is testing a paid membership program similar to Amazon Prime and Walmart+, according to Business Insider.

• Like those services, TikTok Shop Plus gives users access to free shipping, discounts, and coupons for a monthly fee.
• The platform has yet to finalize pricing, with a number of price points—$6, $10, and $15—being tested.

The strategy: Paid memberships are a proven way for retailers to encourage consumers to spend more time and money on their platforms. That is especially valuable for a company like TikTok, where buyer growth is slowing. We expect the number of US social buyers on TikTok to rise 8.6% this year, marking the first time the buyer growth rate has fallen below 10% in six years. Growth will further slow over the next three years, declining to 4.1% by 2029.

TikTok Shop Plus could also help the platform better monetize its ecommerce influence by discouraging users from shopping with retailers like Amazon after discovering a product on TikTok. While roughly half (56%) of creator-driven shoppers buy products or services seen in creative content directly on social platforms, 41% make purchases by following links to a brand or retailer site, while 32% have searched on an ecommerce marketplace like Amazon, according to the Global Creator Commerce Study conducted by EMARKETER and impact.com. Even if TikTok’s shipping guarantees aren’t as favorable as Amazon’s, the prospect of a discount could keep more sales on the platform as consumers favor lower prices over convenience.