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TikTok’s e-commerce business GMV exceeds $1 billion
Source: | Author:Vivian | Published time: 2022-08-22 | 185 Views | Share:


TikTok’s GMV for its e-commerce business in the first half of 2022 exceeded $1 billion, which is equivalent to the full-year volume in 2021, according to LatePost. 


In the first half of 2022, TikTok’s e-commerce division launched its local and cross-border business in Thailand, Vietnam, Malaysia, the Philippines, and Singapore. In these countries, TikTok waived its platform commission for 1 month and 1% of payment channel fees for new sellers. The above five countries have been able to contribute at least 50% of GMV to TikTok’s e-commerce in Southeast Asia.

 


The Indonesian market accounts for a relatively large share of transactions, with an average monthly GMV of US$200 million. Since the end of 2021, TikTok’s Indonesian e-commerce business has seen rapid growth in the entry rate of merchants every month after focusing on increasing investment. 


In 2022, April coincided with Ramadan, which is the most common time of the year for Indonesians to shop online. TikTok’s e-commerce took this opportunity to launch a round of promotion activities to attract users. According to official data, TikTok Indonesia’s e-commerce business saw a 493% increase in orders and a 92% increase in GMV during the festival.


Ecommerce expansions in Europe and US


TikTok is also expanding its e-commerce footprint in the US and European market while entering the Southeast Asia market. According to eMarketer, US e-commerce retail sales are expected to exceed US$3,572 billion in 2022, a figure that is double of the Southeast Asia's e-commerce forecast for 2025, which shows the huge difference in the market volume between the two markets. At the same time, the UK currently has 17 million active TikTok users. Therefore, TikTok has been making foray into the e-commerce sector in the US and UK based on its huge traffic.


TikTok “Order Center”

TikTok is always looking at ways to enhance its customer experience and regularly tests new features that innovate the TikTok experience in markets around the world.

 


Recently, it introduced an "Order Center" panel in the app, which tracks any products consumers have purchased, order status, looked at, or even, potentially interested in. It is blurring the line between social media and online shopping and presenting the ultimate convergence of content and commerce for all.


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