3 surprising truths about TikTok Shop: 1. We’ve seen almost no canabalization between TikTok Shop and Shopify/DTC 2. There is a very clear correlation between volume of videos and revenue outcomes 3. It is fairly price elastic (similar to early Amazon- consumers are price sensitive). Using promos to get to your first 1000 units sold and then pull back.
It's impressive to see how TikTok Shop and Shopify/DTC can coexist without cannibalizing each other
Love to see the insights Archit. Question on #1 - how did you measure the potential canabalization? Was it looking at the sales velocity pre and post TikTok shop? Or some other measure? 2 - seeing exactly the same.
What is the max price/AOV you've seen succed?
Can an online retailer exhibit price inelasticity? Wouldn't this concept strictly apply to the goods or services being sold? I'm unsure how an online platform like TikTok Shop could be described as price inelastic.
Wow, it's interesting Archit!! I'm also intrigued by the price inelasticity, using promos to get that initial traction and then pulling back is a smart strategy 😏
Interesting insights!
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7moArchit Batlaw These insights shed light on the unique dynamics of TikTok Shop! It's fascinating to see minimal cannibalization between platforms, the impact of video volume on revenue, and the price sensitivity resembling early Amazon days. Thanks for sharing these valuable observations!