TikTok wants to rival Shein and Amazon with in-app sales – 06/23/2023 – Market

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TikTok also wants to be Shein

ByteDance, owner of TikTok, continues to strive to replicate in the West the sales success it has with Douyin – the name of the short video app in China.

The newest attempt seeks to make TikTok a direct rival of large retailers, such as its countryman Shein and the American Amazon. The information is from the Financial Times.

Understand: the company is testing a section called “Trendy Beat” in the UK, with products that they popularized in videos on the app, such as tools for extracting ear wax or brushing pet hair from clothes.

• The difference with the TikTok Shop, the platform’s other sales tool, is that these items are produced and marketed by ByteDance itself.

• The Chinese idea is to monitor items that become hits on the platform and scale their production with third-party suppliers – in a model reminiscent of that used by Shein.

• ByteDance even hired employees from the Chinese retailer to accelerate its sales business, according to the Financial Times.

The TikTok Shopwhich is available in the UK and in testing in the US, works like a marketplace, that is, it sells third-party items that are shown in short videos on the platform – in this case, ByteDance only takes a percentage of the transaction.

Last month we showed how the Chinese company is relocating employees who worked on the launch of the TikTok Shop in Brazil to send them to markets where the service already exists, but it has not yet had the expected success.

Which explains: rated at $300 billion and considered the most valuable startup in the world, ByteDance wants to expand its revenue source before going to the market for an IPO (initial stock offering).

• The inspiration is precisely in Douyin, TikTok’s sister app that sold more than 10 billion of products in one year.

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Auto Pix is ​​coming

The account debit may have its days numbered. Scheduled to start operating in April 2024, the automatic Pix will allow customers to pay recurring expenses without having to authenticate each transaction.

Understand: the novelty may work for bills that can be paid with automatic debit, such as water, electricity and telephone, but also for frequent bills that currently do not allow this modality.

• This is the case of gym fees, language courses and other establishments, including some that still today prefer to use checks, as shown by the Sheet.

Only the company that will receive the automatic Pix will have to pay fees, but the amounts have not yet been detailed.

another attractive It’s the end of bureaucracy. The automatic debit, in addition to being limited to agreements between institutions, requires the registration of the account that will be used in the modality both in the company and in the bank.

How will it work: the user will be able to inform the service provider of the option for automatic Pix, pass on the bank details and then authorize the bank application.

• Another way could be via Pix Copia e Pasta or by reading QR Code, functions currently used in transactions via Pix.

• From there, payments fall automatically, without the need to authorize each transaction.

According to the BC, a series of functionalities will be available, such as setting a limit on the amount of the installment to be debited and the cancellation of the authorization at any time.

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