TikTok is testing a new service that could reshape its shopping network
Business Insider – Tech
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Illustration by Nikolas Kokovlis/NurPhoto via Getty Images TikTok is rolling out a new pilot program where it will run most Shop operations for some sellers. For a fee, TikTok will handle key tasks like hiring creators, running ads, and making creative. Its push into managed services may irk some of TikTok's third-party partners with similar offerings. TikTok is jumping into the driver's seat as it looks to grow its e-commerce business. The company is rolling out a new managed services program in the US that will give it much more control over the performance of some of its e-commerce sellers , according to documentation viewed by Business Insider. The company is currently seeking participants for a pilot program in which it will oversee almost all aspects of a merchant's Shop business, including marketing, running automated ads and test creatives through its GMV Max tool, optimizing product listings, hiring creators, and creating content (including hundreds of AI-generated videos ). Sellers will still be responsible for getting products listed on Shop and sending free samples to influencers, but not much else. Enrolling in the program will cost sellers a $10,000 flat fee plus a 10% to 20% commission per sale, depending on a brand's product category, per the documentation. TikTok Shop's move into managed services will put it in direct competition with its Shop agency partners, which assist brands with tasks such as hiring creator affiliates and running ad campaigns. Earlier this year, the company planned to require all sellers to switch to its shipping and logistics program, Fulfilled by TikTok, but ultimately backed off the policy change.
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Illustration by Nikolas Kokovlis/NurPhoto via Getty Images TikTok is rolling out a new pilot program where it will run most Shop operations for some sellers. For a fee, TikTok will handle key tasks like hiring creators, running ads, and making creative. Its push into managed services may irk some of TikTok's third-party partners with similar offerings. TikTok is jumping into the driver's seat as it looks to grow its e-commerce business. The company is rolling out a new managed services program in the US that will give it much more control over the performance of some of its e-commerce sellers , according to documentation viewed by Business Insider. The company is currently seeking participants for a pilot program in which it will oversee almost all aspects of a merchant's Shop business, including marketing, running automated ads and test creatives through its GMV Max tool, optimizing product listings, hiring creators, and creating content (including hundreds of AI-generated videos ). S
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