As a globally leading short-video social platform, TikTok has rapidly become a core strategic partner in the cross-border e-commerce field through its e-commerce business (TikTok Shop) in recent years. Its strategic value is mainly reflected in the following aspects:
I. Global Market Expansion and Traffic Dividend
Cover high-potential markets
TikTok Shop has laid out core markets such as Europe, America, Southeast Asia and the Middle East, and is continuously accelerating its expansion in Europe (such as the opening of sites in Germany, France, Italy, etc.), forming the “one store selling in five countries” model. Merchants can radiate multiple markets through a single entity.
Southeast Asia market: User growth rate exceeds 30%, with an average daily usage time as high as 95 minutes, making it the top choice for low-threshold entry.
In the European and American markets, the monthly active users in the United States have reached 170 million, with a high average transaction value. The GMV has increased fivefold annually, and the single-day sales during the Black Friday promotion exceeded 100 million US dollars.
In the European market, it is estimated that the e-commerce scale will reach 951.1 billion US dollars by 2029. TikTok has already occupied 125 million monthly active users, and high-value categories (such as home and beauty) have seen significant growth.
- Traffic and content advantages
User stickiness: The average daily usage time of TikTok users far exceeds that of other platforms (for example, the average daily usage time of American users is 95 minutes), and the content exposure efficiency is 10 to 20 times that of domestic platforms, achieving a cold start at a low cost.
Content e-commerce model: By stimulating immediate consumption through short videos and live streaming, tags such as #TikTokMadeMeBuyIt drive up conversion rates. For instance, the sales of gardening products in a single live stream exceeded 10,000 US dollars.
Ii. Platform Ecosystem and Policy Support
- Diversified operation models
o Fully managed model: The platform operates logistics and after-sales services on behalf of customers, making it suitable for supply chain merchants to quickly distribute goods.
Self-operated (POP) model: Merchants independently plan content and activities, and combine a matrix of influencers to amplify traffic. - Empowerment through incentive policies and tools
Newcomer Support Program: Offer traffic subsidies and operation guidance to lower the entry threshold.
The o PEAKS Methodology: It covers modules such as product optimization, content acceleration, and marketing amplification, helping merchants achieve certain growth.
Logistics solutions: Integrating FBT official warehouses, cross-border direct mail and other models to enhance fulfillment efficiency.
Iii. Brand Building and Long-Term Growth
Content-driven brand mindset building
TikTok helps brands accumulate A3 grass-planting audiences (contributing 37% of GMV) through brand advertising (such as splash screen ads and short drama placements) and the O5A audience model (reach – seeding – conversion), thereby enhancing repurchase rates and premium pricing power. For example, ONLYOU has accumulated loyal users in Southeast Asia through long-term brand investment.
- Localization and scenario-based operation
Integrate local culture to create content (such as optimizing the 6-second completion rate), and adapt it to festival marketing (such as Black Friday and Spring promotions) to enhance user resonance.
The European market demands strict compliance (such as CE certification and EPR), and TikTok has lowered the threshold for merchants through policy adjustments (such as relaxing the subject qualifications).
Iv. Risk Management and Future Opportunities
- Challenges and Strategies
Compliance risk: It is necessary to comply with the requirements of EU tax (VAT), product certification, etc. It is recommended to set up overseas warehouses to shorten the logistics time.
Intensified competition: The US market needs to enhance localized content, while Southeast Asia relies on low-price bestseller strategies. - Future growth points
Emerging markets: The user penetration rate in regions such as Latin America and the Middle East is low, and their potential remains to be tapped.
Live streaming and tip rewards: Accounts with over 100,000 followers in the US region can earn up to 20,000 yuan from a single live stream, further expanding their monetization channels.
Summary
The strategic value of TikTok lies in the triple superimposition of its traffic dividend, content e-commerce model, global layout and ecosystem support. It not only provides short-term explosive growth opportunities for merchants (such as a 305% increase in GMV during major promotions), but also promotes long-term growth through brand building. In the future, with the formation of a closed loop in the European market and the expansion of emerging markets, TikTok may become an irreplaceable core platform for cross-border e-commerce.
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