The short video is becoming an important form of media, especially since the co-vid pandemic. Among short-video platforms, TikTok is definitely the leader. A video posted on TikTok can get 5 million or even 10 million views, the commercial value behind is unlimited.
Meanwhile, due to the growth of purchasing power and Internet penetration rate, especially on mobile devices, more and more people have obtained e-commerce opportunities. The 2020 e-commerce report released by Statista shows that the global e-commerce market will exceed the US$2 trillion thresholds in 2020.
Traffic plus a favorable market environment means a huge opportunity for dropshippers. And TikTok is going to open a brand new profitable market for dropshipping.
What does dropshipping mean?
Dropshipping is not a new term for people who already made money through online business but if you are a beginner you might be curious of what it is. It’s quite simple, dropshipping is a method of supply chain management. Retailers do not need merchandise inventory but send customer orders and shipping details to wholesalers, and wholesalers send goods directly to end customers.
Dropshipping can also be understood as “direct delivery” or “transit distribution”. In this way, sellers do not need to backlog a large number of products. When there is an order, the order will be forwarded to the corresponding supply. Merchants or manufacturers, they will directly ship to the customers designated by the retailer. Some dropshipping platforms even do sourcing, packing shipping, and after-sale service for sellers, so the only step left for you to make it work is marketing. In e-commerce, marketing means getting traffic. As long there’s traffic, there’s business.
Where to get traffic?
Traditionally, We get traffic from traditional social platforms like Youtube, Facebook, Instagram, Twitter. However, the content ecology of the traditional four platforms is already very mature, it is more difficult to obtain traffic now. But TikTok hasn’t completed its business model, so there is great potential that lay ahead as the short-video landscape is exploding.
According to the App Annie report, the time users spend on TikTok in 2020 has increased by 325% year-on-year, and the average monthly user time has surpassed that of Facebook.
TikTok’s biggest threat to Facebook is its audience. According to statistics, 40% of TikTok users do not have a Facebook account, and 63% of TikTok users do not use Twitter. In other words, through TikTok, you can reach users who are not covered by Facebook and Twitter. Thus, TikTok has shaken the marketing field with its viral power and will disrupt the long-standing competitive situation of the US Internet. It’s no exaggeration to say that TikTok is likely to develop into a complete social ecology in the future, surpassing Facebook or even Google.
Other stats of TikTok
1. TikTok has more than 800 million active users. The number of users of the platform exceeds Reddit, Snapchat, and LinkedIn.
2. TikTok is used in more than 154 countries/regions. And it supports 39 languages.
3. TikTok has been downloaded more than 1.5 billion times. Lifetime users around the world have also spent US$175 million on TikTok.
4. More than one-third (37%) of unique visitors to TikTok come from households with a total income of $100,000 or more.
5. 29.5% of TikTok users are between 20 and 29 years old.
6. TikTok has the highest social media engagement rate among 100,000 user profiles，according to research by the Influencer Marketing Center,
Most people think that most of the users on TikTok are aged 16 to 24. Now obviously, that isn’t true. While 41% of TikTok users fall into that age range, 59% of the others are the GenX, Millennial, and even Baby boomer generations. What does that mean? It means there is still room for you to sell your products on this platform, even if your target audience is not aged from 16 to 24.
These statistics show that TikTok can bring value to your online business. If you haven’t added TikTok to your social marketing strategy, you should do it fast!
Tiktok is favored not only by Wal-Mart but also by companies such as Shopify and Adjust. Shopify official announced that platform sellers can choose products to generate video ads on Tiktok, and then guide consumers to buy products through the store’s Tiktok channel. This means that even if the seller does not have a strong influence, they can use the Tiktok platform to generate traffic and content, establish contact with consumers, and gain higher exposure for the brand.
As more and more platforms begin to flood into this field, it means that more retail brands are willing to start trying to sell on social media. In the future, TikTok hopes to form a closed-loop purchase of consumers from planting grass to placing an order and compete with Amazon.
If you are an influencer and you want to turn your traffic into money or you are doing online business and ready to use TikTok as a new venue to sell products, it’s time to make a move. Who arrives first is more likely to get the biggest portion of the profit. Be strategic before it’s too late.