The Impact of Social Shopping: How TikTok is Changing the Game
Shopping habits have undergone a significant transformation since the Covid-19 pandemic and resulting lockdowns. For many, especially younger shoppers, the lines between social media and e-commerce have blurred, leading to a cultural phenomenon known as #TikTokMadeMeBuyIt.
Lilia Souri and AJ Pulvirenti, hosts of the podcast “Gen Z on Gen Z,” have observed the power of TikTok in shaping the shopping behaviors of their generation. With TikTok’s advanced algorithm and seamless shopping experience, users can easily purchase products directly on the platform, creating a cycle of watch, shop, repeat.
The rise of social shopping is evident in the market, with a global worth of $570 billion in 2023, projected to surpass a trillion dollars by 2028. While TikTok currently leads the way in social shopping, its future is uncertain due to potential bans in the US.
Despite TikTok’s dominance, Facebook remains a significant player in social shopping, particularly through Facebook Marketplace. However, TikTok boasts a higher percentage of users who make purchases on the platform, indicating its strong influence on consumer behavior.
As social shopping continues to evolve, platforms like Amazon are introducing new features to enhance the shopping experience. However, some, like AJ Pulvirenti, remain skeptical of these additions, emphasizing the importance of offering unique and innovative features to attract users.
In Indonesia, TikTok’s e-commerce service faced challenges due to government regulations aimed at protecting local retailers. However, a recent investment by TikTok in Indonesia’s largest e-commerce platform has revived opportunities for sellers like Evo Syah, who rely on social shopping for their businesses.
Looking ahead, the potential ban of TikTok in the US could have far-reaching implications for the world of social shopping. While platforms like Instagram Reels may fill the void for displaced TikTok users, the future of social shopping remains uncertain.
As AJ Pulvirenti and Lilia Souri suggest, the next big thing in social shopping has yet to be created, highlighting the dynamic nature of the industry and the constant need for innovation to meet the evolving needs of consumers.
