TikTok expands its e-commerce presence to compete with Shein and Amazon

TikTok expands its e-commerce business with its new shopping feature called Trendy Beat. The feature is currently in testing mode in the UK.

TikTok is trying its hands at adding a new shopping feature "Trendy Beat" in its application. 

According to a Tech Crunch report, TikTok is selling products that are shipped by its subsidiary or parent company, Byte Dance. The feature is currently in testing mode in the UK and it offers products that appear in trending videos, such as a tool to extract ear wax.

The items advertised in the TikTok app are shipped from China, sold by a Singapore-registered company, and owned by ByteDance, TikTok's parent company.

TikTok is trying to do what Amazon has done earlier, promoting its own best-selling items representing a vast shift from TikTok's existing shopping marketplace. The short-video-making app will take a small commission from vendors by allowing them to sell through their app.

TikTok says the company is exploring new ways to improve the consumer experience, and they are in the early stages of experimenting with new shopping features.

The company is heavily promoting the Trendy Beat feature over rival sellers. TikTok essentially builds its own product and sales pipeline instead of depending on third-party sellers to create their TikTok shop under its new approach.

According to Financial Times, ByteDance plans to start selling its own product in its app, which is referred to as "Project S."

The report further says that it leverages the knowledge of the product gaining popularity that allows ByteDance an opportunity to either acquire or manufacture those products. 

ByteDance is building its online retailing unit to challenge groups like Shein or cheap product sellers and Pinduoduo’s sister app Temu.

TikTok made some significant restructuring last month and refocused on its e-commerce efforts in its existing markets in the UK, rather than going international expansion in Western markets.

One of the ByteDance employees said that Bytedance realised that they want to build their own brand in the TikTok app instead of creating an independent application like Shein and Temu.

The shopping link of Trendy Beats is linked with Seitu, registered in Singapore. Public records suggested that If Yooou, a retail business owned by ByteDance, is also connected to Seitu, reported Financial Times.