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A service that allows customers to subscribe to items in order to get recurring deliveries is being tested by TikTok. The service is comparable to the subscribe-and-save tool offered by Amazon. Subscription orders may improve management of stocks and forecasting of revenue for retailers.
As reported by two Shop partners who are familiar with the technology, TikTok is testing an updated function that lets users subscribe to get items from its e-commerce platform Shop on a frequent schedule.
The program, which is comparable to Amazon’s subscribe-and-save function, offers discounts to customers who repurchase products like medicines or snacks. In exchange, sellers may lock in regular income.
The Shop partners stated that not all sellers currently have access to this feature.
Sales Growth
According to a TikTok representative, the firm frequently tests new features in order to get community input and learn from it. They stated that users of the app are not yet able to use this function. Shop vendors may get more consistent revenue as a result of the functionality. Managing inventory has proven difficult for some in the face of viral video sales increases or declines following a decline in video views.
“Subscriptions that are on TikTok Store will continue to add ease and savings,” stated Warren Jolly, CEO of adQuadrant, a digital advertising company that was granted preview access to the function. Instead of running the danger of customers moving to Amazon or a different platform, he said that switching might keep them from making regular purchases on TikTok.
New Strategy
TikTok’s most recent attempt to level the playing field for its Shop offering against e-commerce rivals is the introduction of subscriptions. After a year of beta testing, it was released in the United States in September 2023. Currently, the firm provides a range of capabilities for merchants, such as a specialized app store and transportation and fulfilment operations.
Despite being relatively young, it has swiftly garnered popularity. Blessed Friday alone brought in $100 million for TikTok Shop in the US this past year. It has surpassed established players like Walmart in certain metrics, such repeat business.
Naturally, after a few months, TikTok’s American e-commerce company may be abruptly closed. According to a law, the business must sell off its parent firm, ByteDance, from the United States app or essentially stop doing business there.
Numerous businesses and rich individuals have made offers for TikTok to the public. The business has not stated if it is interested in selling. TikTok’s attorney informed the Supreme Court during January that abandoning would prove “extremely complex” over any period of time
