TikTok is changing the ecommerce game.

For those feeling as though they've missed previous ecommerce waves like dropshipping, TikTok has officially launched its in-app marketplace in the U.S., UK and South East Asia.

The new marketplace offers a new revenue stream that's already showing significant potential.

Keila, creator of the Shadow Work Journal, added her ebook to the TikTok shop and generated a massive $4,000,000 in sales in just the last 30 days.

Unlike Instagram, which has selective vendor policies, TikTok has made its platform accessible to any business located in the U.S., the U.K., or South East Asia. It has also built a creator marketplace for easy affiliation and payment processes.

Here's why TikTok rules the ecommerce game, according to a survey by Business Insider and NT Technology:

  • 42% of users say they’re on TikTok to discover new things and brands.

  • 67% believe that the platform gives them ideas about new brands and products.

  • 57% have been inspired to purchase something they saw on TikTok.

  • 83% say that TikTok played a role in their purchase decision.

Basically, TikTok has built an innovative marketplace where sellers can easily reach out to influencers and give them affiliate fees - all handled through the TikTok infrastructure.

TikTok is giving extra algorithmic push to user-generated content around its Shop and is subsidizing $15-$25 for each customer's first purchase. This subsidy can essentially make products free for consumers and offers a unique incentive for new businesses.

The TikTok shop was fully launched in the U.S. on September 12, 2023. The opportunity is ripe now but may get oversaturated within the next 6-12 months.

Forget legacy platforms; TikTok presents a fresh canvas for initiatives like dropshipping, affiliate marketing, and direct brand creation. TikTok has also announced partnerships with established ecommerce platforms like Shopify and WooCommerce.

This is a massive opportunity to capitalize on the TikTok subsidy and ride the wave of the algorithmic push around TikTok Shop products.

With a less saturated ad market, a hungry audience, and unique perks like algorithmic push and consumer subsidies, TikTok's marketplace offers a fertile ground for ecommerce entrepreneurs to start new ventures.