TikTok will cooperate with TalkShopLive to launch live shopping function in the United States!

It is learned that according to the Financial Times, TikTok will establish a partnership with Los Angeles-based TalkShopLive to launch a live shopping function in the United States. The two companies are still finalizing the details of this cooperation and no contract has been signed.

It is reported that TikTok had planned to launch live shopping features in Europe earlier this year, but due to poor business performance in the UK market, including poor sales, cooling interest from influencers and brands, and limited consumer awareness, the platform rethought its expansion plans.

“TikTok wants a one-stop solution that can help manage the live shopping process,” the people said, adding that the shopping feature is expected to be launched next month in partnership with major brands ahead of the holiday season.

Under the yet-to-be-determined agreement, TalkShopLive will provide infrastructure and support to TikTok, including enabling brands to simultaneously host the same livestreams on their e-commerce sites and drive sales outside of TikTok. In addition, TalkShopLive will receive a commission of approximately 10% from livestream shopping, with TikTok initially covering the costs.

According to a survey conducted by Bizrate Insights for Insider Intelligence, only 17% of American adults would purchase items through live broadcasts or videos, and the live shopping market in the United States has not yet become popular.

Meta, which owns Instagram and Facebook, as well as YouTube, have tried live shopping features in recent years with limited success. Meta previously announced that it would shut down its live shopping feature on Facebook in October, while shopping on Instagram is still in the early testing stages.

Katie Hansen, senior retail and e-commerce analyst at Mintel, said: “Livestream engagement is growing in the US, albeit slowly compared to other countries such as China, suggesting there is a need to use testing phases and consumer education to encourage consumers to use this tool on social media.”

It is understood that in 2021, TikTok's operating losses in Europe reached US$895.6 million. The cooperation with TalkShopLive will enable TikTok to launch the live shopping function faster without spending too many resources.

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