Canadian e-commerce firm Shopify said it will associate with TikTok to help its one million-plus merchants more easily advertise their goods on the brand new app, as it seems to grow its client base.
The link-up using Shopify, which supplies an e-commerce platform and distribution services to largely small and medium-sized businesses, comes as a proposition for Walmart to purchase a stake from the Chinese-owned firm is trapped in limbo.
Shopify said the partnership enables its retailers to sell product in the kind of shoppable video ads, where TikTok users can click on an advertisement to buy the item.
All trades will happen through Shopify’s website, helping the Toronto-based company drive sales on the internet, while both businesses “will also collaborate to test new commerce features” within the coming months,” it said.
“We’re thrilled to be the first partner to welcome TikTok to the world of commerce, particularly right now, as our merchants prepare for a busy online holiday shopping season,” said Satish Kanwar, VP of Product in Shopify.
TikTok, which reaches 100 million US consumers a month, said it was constantly looking for new ways to connect manufacturers with its customers.
“Shopify is a perfect partner to help us grow and expand our commerce capabilities globally,” Blake Chandlee, VP, Global Business Solutions in TikTok, said in an Emailed statement.
Both companies did not provide financial details regarding the tie-up.
“TikTok aggregates a massive audience for branding and as a Shopify user, you can allow third party advertisers to use your videos you upload in their advertisements,” explained Mark Boidman, managing director and head of tech and media services in boutique investment bank PJ Solomon.
“This is key for TikTok users who have good content and lots of followers.”
Walmart has been looking at a bargain with TikTok to improve its marketing strategy by assisting the world’s largest brick-and-mortar retailer engage with younger audiences, but the talks to invest stay shrouded in political instability.
A US appeals court hearing is expected on November the 4th about whether to permit the US government to exit trades with TikTok, a move that TikTok cautioned would effectively prohibit its use in the United States.
In June, Walmart also partnered with Shopify to enlarge its online market company and catch a bigger slice of this coronavirus-driven surge in online sales.