Are you in or out of the $100B social commerce opportunity?
December 4, 2024
Did you know that social commerce already accounts for 6% of e-commerce in the U.S.? And it's projected to reach $100B by 2026.
It's already 30% in China. So, the U.S. has some catching up to do. More importantly, YOU may too!
Credit card numbers don't lie, and they show that platforms like Shein, Temu, and TikTok Shop will capture 21% of holiday sales this year. In fact, TikTok Shop alone has tripled its sales compared to last year.
This week, we also learned that 70% of Gen Z men are into skincare, much of it driven by TikTok. TikTok Shop has reported double-digit growth in men’s skincare over the past three months. And let's not forget the TikTok fragrance community, where creators influence 45% of social media-driven fragrance purchases in the US.
As I always say (and it’s practically a motto at SuperSell): “There’s a market for every niche on TikTok.”
If you follow The Tok, you know I’m constantly amazed by the ingenuity of TikTok Shop’s Affiliate Program. This week, more articles highlighted how creators are earning big through shoppable videos and live streaming.
This week, when I spoke to TikTok Shop’s partner team, they confirmed what I saw: 80% of TikTok Shop's US GMV comes through affiliates!
As I always remind brands: You don’t need a content creation team to succeed on TikTok Shop. What you need is a powerful affiliate program to drive results.
So, are you in or out?
Hit reply and tell me what’s keeping you from taking advantage of this $100B opportunity—I’d love to hear about it!
Reading time: 3.5 mins
Hot Tok News
Shein, Temu, and TikTok Shop drive 21% of holiday sales
Chinese e-commerce giants Shein, Temu, and TikTok Shop are reshaping the US retail landscape, driving a 21% share of holiday sales—double their 2016 share. TikTok Shop’s sales more than tripled compared to last year, while Shein and Temu saw double-digit growth. These platforms are creating massive consumer demand, competing with traditional retailers and even Amazon.
Jason Goldberg, chief commerce strategy officer at Publicis Group, argues that “Temu, Shein, and TikTok Shops have created somewhere between $50 billion and $100 billion worth of consumer demand in the U.S., and they’re fulfilling it.”
https://www.businessoffashion.com/briefings/retail/this-week-on-black-friday-its-shein-and-temu-versus-the-world/https://www.modernretail.co/technology/chinese-e-commerce-platforms-are-taking-away-holiday-market-share-from-major-u-s-retailers/
Men’s skincare surges on TikTok Shop
Driven by Gen Z’s enthusiasm and social media trends, TikTok Shop reports double-digit growth in men’s skincare over the past three months. With 70% of Gen Z men using skincare products, TikTok has become the go-to platform for discovering routines, from cleansers to DIY skincare fads.
https://www.thetimes.com/life-style/beauty/article/skincare-products-teenage-boys-christmas-6fx8plphd
TikTok Shop creators making full-time incomes as sellers
Content creators who are becoming affiliates on TikTok Shop are finding financial success as they review and promote TikTok Shop products. By leveraging TikTok’s growing e-commerce features, these creators are transforming product reviews into a lucrative full-time job.
https://www.forbes.com/sites/adamwescott/2024/11/26/meet-the-creators-who-make-a-full-time-living-as-tiktok-sellers/
Stickler launches first live selling analytics platform on TikTok Shop app store
Finally, real-time analytics for TikTok Shop live streams is here! As I always say, you can't improve what you can't track. The Stickler app is now available in the TikTok Shop App Store, arriving just in time for the rapid growth of live shopping in the US forecasted for 2025. Stickler’s CEO, Fionn Hyndman, is optimistic about TikTok Shop's potential, projecting over $3 billion in GMV per month in the US during November and December, along with 30–60% month-over-month growth in live streams and viewer session lengths.
https://martech360.com/social-media-technology/social-media-monitoring/stickler-launches-first-live-selling-analytics-platform-in-tiktok-shop-app-store
Insider Tok
[News feature alert] GMV Max ads
TikTok Ads Manager now offers GMV Max campaigns, designed to automate ad creative selection, audience targeting, and budget optimization—all aimed at maximizing your GMV. These campaigns use signals from both organic and paid traffic, and you can leverage your existing product listings and videos as ad creatives.
Right now, only the Product GMV Max option is available in the US. The LIVE GMV Max option, focused on live stream revenue, will be available later.
GMV Max ads are perfect for accelerating your TikTok shop's already successful organic growth.
For a tactical boost, you can also test them with UGC-style videos that perform well on Instagram to kick-start a new product, but I wouldn’t recommend using GMV Max ads as a strategy for building growth from scratch.
https://ads.tiktok.com/ttam/gmv-max-launch
TikTok Shop expands to Spain and Ireland
TikTok Shop is now live in Spain and Ireland, furthering its mission to dominate global social commerce. With this launch, TikTok Shop is now available in several markets, including the US, UK, Indonesia, Malaysia, Thailand, Vietnam, Philippines, Singapore, South Korea, and Australia, giving brands access to a growing global network of social commerce shoppers.https://finance.yahoo.com/news/tiktok-shop-expands-spain-ireland-093000975.html
The TikTok fragrance community is thriving
TikTok proves there’s a market for every niche, including fragrances. This article dives into the TikTok fragrance community, where creators and users share their love for scents and their impact on self-expression, offering inspiration for sellers to explore niche markets. And we've done some digging—The hashtag #PerfumeTok has racked up over 5.2 billion views, showcasing the immense interest in fragrance content. TikTok also drives 45% of social media-driven fragrance purchases in the U.S., making it a key player in influencing consumer behavior.
https://www.strikemagazines.com/blog-2-1/you-smell-good
https://sociallypowerful.com/post/fragrance-marketing-on-tiktok
https://www.beautypackaging.com/contents/view_experts-opinion/2022-10-14/the-evolution-of-perfumetok-on-tiktok
Tokonomics
We talk a lot about social commerce, but how big is it? The Economist shared some fascinating numbers this week:
- In the US, social commerce will account for 6% of online sales in 2024, reaching $72 billion (projected to grow to $100 billion by 2026). (Source: eMarketer)
- In China, social commerce will represent nearly 30% of all e-commerce, totaling $900 billion in online sales in 2024.
Fun Tok
Very demure, very mindful.
This expression—and especially the word demure—has taken the internet by storm in 2024. It even made its way onto Jimmy Fallon and SNL! And guess what? It all started on TikTok.
Between January and August, demure saw a nearly 1200% increase in usage in digital media, leading Dictionary.com to name it the Word of the Year for 2024.
Wondering what it means?
According to Dictionary.com, demure is defined as being characterized by shyness, modesty, and reservation.
Here’s the original TikTok that kicked off the trend: https://www.tiktok.com/@joolieannie/video/7399736793119247662
https://people.com/demure-named-the-2024-word-of-the-year-jools-lebron-8751862
That's a wrap!
Happy Holiday season! I will see you next week, Wednesday!
Steph
Empowering Global Brands to Lead on TikTok Shop US
