The convergence of these once distinct online markets exemplifies the natural overlap between online relationships and e-commerce for the smartphone generation. TikTok’s foray into shopping comes as Amazon, the largest online retailer in the U.S., pushes into social. Shopping habits for the smartphone generation “It will be interesting to see if governmental wariness around data protection and privacy translates to consumer wariness as shopping is an inherently more data-heavy transaction,” says Megan Lightcap, a principal at Slow Ventures who invests in the creator economy, over text. government, over worries that the China-owned app could be used to spy on Americans (TikTok says it does not share protected U.S. TikTok is already under scrutiny by the U.S. And the fact that this sensitive personal data, including credit card information and mailing addresses, is being collected by the China-owned company could create more complications. Still, for brands looking to build relationships with customers and garner repeat sales, the lack of data could be a problem. (Amazon does not share customer emails with merchants either, so TikTok’s policy is not unique in that respect.)

The social giant is hoping to replicate its success in North America.Ī representative from the company told Fortune that Shop integrates with Shopify, Salesforce, and other commerce enablers, but did not address whether it shares customer emails with merchants. Livestream shopping on on TikTok parent ByteDance’s Chinese equivalent Douyin is extremely popular. “They’re going to start generating actual revenue and taking credit card information from all these users, not sharing it with the actual brands,” McFerran said, discussing why her fake nail and lash company ultimately decided not to join TikTok Shop at launch. Ann McFerran, CEO and founder of cosmetics company Glamnetic, told Fortune that TikTok’s onboarding process was overly complex and that the company does not give brands access to customer data. This spokesperson also told Fortune that TikTok Shop has over 200,000 sellers and 100,000 creators participating in the TikTok Shop Affiliate program.īut some brands may balk at TikTok’s data policies. So I think we’ll continue to see get better and better,” she says.Ī representative for TikTok disputed the characterization of the products available for sale as “low-quality,” noting that the platform only officially launched this week and that the company has already onboarded brands such as L’Oréal, Benefit, Revolve, and ScrubDaddy. “They’re definitely working on onboarding some really great partners that they have shared. Haley Galler, head of talent at influencer management company Shine Talent Group, says TikTok is courting American brands for Shop in order to alleviate such worries.

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