TikTok usage is starting to slow down – is TikTok Shop to blame?

TikTok may be the top app. of the world in downloads and consumer spending in 2023, but it doesn't rank among the top in terms of actual usage. Last year, Facebook once again maintained its #1 position by monthly active users. Followed by other apps Meta that owns WhatsApp, Instagram, and Messenger, all of which are ahead of TikTok at number 5. Now, new data indicates that TikTok's growth has started to slow, raising questions about whether the app will enter e-commerce through the TikTok Shop.

According to new data from market intelligence firm Sensor Tower, while TikTok's growth remains positive, that growth is slowing. In 2022, TikTok's monthly active users grew an average of 12% year-over-year. year by quarter But this figure drops to 3% year-on-quarter in 2023.

The change comes after the launch of TikTok's TikTok Shop in the United States.

The video app began testing Shop in the U.S. in November 2022, and those tests expanded earlier this year as more brands joined in. More are coming to use it, such as PacSun, Revolve, Willow Boutique, and the beauty brand KimChi Chic, among many others, even though the store has not yet launched. It's not "officially" available in the U.S. until September 2023, but it's just one of many attempts to translate the influence of TikTok videos - basically all the "TikTok made me buy it" memes - into real-world sales.

Last summer in the UK, for example, TikTok trialled an in-app shopping section called "Trendy Beat," which featured products sold by TikTok's parent company, ByteDance. TikTok also offers an affiliate program that helps people Create earns commission on products, as reported by the AP and others.

But merchant adoption of the shopping platform is starting to lead to complaints, as Business Insider noted in November. With some people lamenting that TikTok Shop is turning the app into a Redditors are arguing that the TikTok Shop has "ruined" the app, which is now full of "advertising wastelands" and "dystopias" elsewhere on the web. “People dropshipping/selling cheap products,” as one Reddit user put it.

“Personally, I'm starting to feel really annoyed. at other videos Almost all of my [For You Page] are people exaggerating products from the Shop feature in an attempt to go viral and make big commissions,” writes Redditor u/megg-salad-sammich. in September “It's great that it's a new way for creators to make money. But I find myself scrolling less because I know that almost every video is trying to get me to buy random things,” they said.

A search on Reddit found other threads. Many have been complaining about the same thing over the last year, saying that TikTok is annoying now because of the TikTok Shop and seeing ads every so often. A couple of videos is a frustrating experience.

As TikTok users adapt to their favorite social network becoming an online shopping mall, TikTok's Shop Seller app, which powers its e-commerce initiative, is growing.

Sensor Tower data indicates that merchant merchant growth has been “robust” since the fourth quarter of 2022, increasing 230% year-over-year as of the fourth quarter of 2023. However, the app has a growing user base. Active users are just a fraction of TikTok's — currently at 1.4 billion as of the first quarter of this year. Meanwhile, Shop Seller only has about 6 million monthly active users, the company reports.

Instagram may finally benefit from user dissatisfaction with TikTok Shop, as the Meta-owned app removed its own Shop tab in January last year. and closed live shopping in March This may make it more acceptable for people who want to avoid direct calls to action to make in-app purchases.

Meta's moves follow broader industry trends. That doesn't seem to bode well for the future of TikTok Shop, with real-time shopping blossoming during the pandemic. And e-commerce sales are skyrocketing. But when things return to normal It was found that trading through social media (including live shopping) accounted for only about 5% of all e-commerce sales in the US as of 2022, which appears to indicate that US consumers You may not be as prepared as you should. to purchase directly from the video. Even though those videos are still clearly influenced by online trends.

However, users are still not upset with TikTok Shop for abandoning the app for Instagram Reels.

Sensor Tower found that monthly Instagram user growth has been fairly consistent at It is "neutral" and has not been significantly impacted, either negatively or positively, since the launch of the TikTok Shop merchant app.

Data from another company, Appfigures, also supports this conclusion. But it added that while TikTok's revenue has increased, downloads have stagnated or declined more than growth. This is a trend that has been going on for over a year now. both at the global level and in United States of America.

https://github.com/serzanx/watchthai/issues/10
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