TikTok Shop has expanded to Germany, France, and Italy and today Torsten Schäfer, Europe Managing Director of ecommerce accelerator, Pattern, comments on the opportunities this creates for sellers and strategies for success when selling in new markets and on a new platform:
The expansion of TikTok shop into the three new European countries, whose combined ecommerce market value is projected to reach USD 5,554.4 million by 2030, is a huge opportunity for online sellers. The shops are not currently open for customers, but sellers can set up accounts in the Seller Centre and start verification processes ahead of the big launch.
Breaking free from the constraints of domestic markets and tapping into global ones can be a growth golden ticket, but businesses are often put off by the accompanying complications. Marketplaces significantly lower barriers to international selling as they present merchants with a ready-made engaged audience, especially when sellers can seamlessly adapt their marketing strategy to thrive on social commerce platforms like TikTok Shop. While this expansion makes it simpler to sell cross-border, sellers must approach it strategically and with compliance in mind to avoid misunderstood markets and regulatory faux pas.
Torsten Schäfer’s Tips for entering the new TikTok Shop markets
Cultural nuances, buying behaviours and market demands should be thoroughly researched to ensure the new markets hold promise, and businesses can’t assume that what works at home will seamlessly translate. Sellers should work with in-region experts to ensure that import and export regulations, duties, product safety standards and tax laws are adhered to – this initial investment will ensure the smooth running of international operations and minimise the risk of fines and penalties.
Selling strategies must be fine-tuned to suit the region, focusing on competitive but profitable pricing models and marketing that resonates with language patterns and cultural preferences beyond simple translation. Finally, a robust supply chain is the backbone of any ecommerce venture and partnerships, as well internal people, platform and processing planning, must be thoroughly evaluated.
Brands looking to sell via TikTok Shop for the first time as it enters new markets must understand how marketing strategies on TikTok Shop differ from traditional ecommerce marketplaces like Amazon, Allegro and Bol. The integration with the social media platform offers unique opportunities for sellers. The emphasis is on short-form video content and social engagement, leveraging influencer marketing and viral content to captivate users as opposed to more transactional engagement like search optimisation and customer reviews, as seen on Amazon. On TikTok Shop, products are discovered via algorithm-curated feeds, hashtags and influencer collaborations, often leading to spontaneous purchases, whereas Amazon purchases are typically more intent-driven as users make search queries and explore detailed product listings.
