Adding To Their Shopping Cart?
TikTok reportedly planning to open fulfillment centers to compete with Amazon
Amazon is undoubtedly the king of the e-commerce industry, but the online giant may be getting some competition from an unlikely source: Social media company TikTok.
Axios reported Tuesday that TikTok is planning to open a number of fulfillment warehouses across the U.S., as evidenced by a dozen new job postings from the company on LinkedIn. One of these listings said that the warehouses would "help sellers improve their operational capability and efficiency, provide buyers a satisfying shopping experience and ensure fast and sustainable growth of TikTok Shop."
While TikTok is most well-known for its short-form video app, TikTok Shop allows creators to partner with affiliated content to promote brands and products. However, unlike Amazon, which has its own transportation vertical, Axios reported that TikTok would only control the warehouses, and leave shipping and logistical aspects to third-party vendors.
TikTok is one of a number of online companies attempting to compete with Amazon, whose revenue reached $469 billion in 2021, per Statista. This new e-commerce push is just one way that TikTok is reportedly attempting to make its mark in online shopping, as the Financial Times reported that the company is also considering implementing a live-shopping feature, similar to QVC, in time for the upcoming holidays.
Similar e-commerce programs from TikTok are already active in places like Asia and the U.K.
The TikTok news notably broke the same day that Amazon launched its second Prime Day of the year, one of the company's busiest days.