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· Posted on
February 21, 2024

TikTok is creating its own logistics and warehouse network so it ain’t just a silly dance app anymore

TikTok has taken the world by storm and even launched a shopping option... now, it's building a whole logistics network.

What's the key learning?

  • TikTok users are absolutely hooked with the app, with an average daily usage of 52 minutes on TikTok per user.
  • TikTok recently launched a shopping option called TikTok Shop but now they're going one step further by building a whole logistics network to support its social commerce.
  • TikTok is still wary of the ad downturn as marketers continue to pull back spending, so building out its own e-commerce supply chain could give TikTok more control and help boost its profits around the world.

👉 Background: TikTok has really taken the world by storm over the past couple of years. It’s wild trends seem to explode all over the internet. I mean, who thought a bunch of people singing "One thing about me" off-tune to a Nicki Minaj song could be so captivating?!

👉 What happened: TikTok users are absolutely hooked. We’re talking average daily usage of 52 minutes on TikTok per user.

👉 What else: Recently, TikTok launched a shopping option called TikTok Shop, but now, they’re going one step further by building a whole logistics network to support its social commerce.

What's the key learning?

💡Ad-first businesses are desperate to find new ways to become other-things-second businesses. Over the past 12 months, we’ve seen the ad-focused businesses whacked.

💡Although TikTok has seen explosive growth in its ads business - it is still wary of the ad downturn as marketers continue to pull back spending.

💡So building out its own e-commerce supply chain could give TikTok more control. And help it boost profits around the world.

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