Marketing

TikTok Takes On Instagram and Amazon With New Shop Tab for Ecommerce

Kristaps Safranovs / July 18, 2023

TikTok is testing a new “Shop” tab that displays a dedicated feed for shopping, marking the platform’s latest move into ecommerce. The tab includes categorized shopping content and a cart feature, aiming to make TikTok a one-stop destination for both entertainment and shopping.

This build on TikTok’s previous failed tests of live shopping in Western markets. However, the short-form video app remains committed to unlocking social commerce. The Shop tab is part of an initiative called Project Aquaman, which involves global fulfillment infrastructure for seamless delivery.

TikTok seeks to challenge established ecommerce giants like Amazon. But it faces stiff competition from Instagram, which dominates social shopping and recently launched its own TikTok-like feature called Reels.

Recent surveys indicate a generational divide, with Gen Z consumers now favoring TikTok over Instagram. A 2022 Forrester study found 77% of Gen Zers use TikTok weekly versus 57% for Instagram. TikTok’s immersive, entertaining content better resonates with younger audiences. The app’s ecommerce features cater perfectly to this highly-engaged user base.

For creators and businesses, TikTok Shop presents major opportunities. The platform’s strong viral potential can drive product discovery and conversions at scale. TikTok’s ecommerce capabilities also enable new revenue streams through affiliate marketing and live shopping.

The Shop tab roll-out will likely accelerate, as TikTok pursues its mission of becoming the world’s go-to destination for creation, entertainment and shopping. For Instagram, it signals an era of intensified competition for the social media crown.