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5
min read time
October 17, 2023

TikTok Shop Promotions Attract Sellers, But Facebook and Instagram Offer More Commerce Value

Analyzing TikTok Shop's Black Friday: Measuring its impact on live shopping success.

TikTok Shop Promotions Attract Sellers, But Facebook and Instagram Offer More Commerce Value
Table of Contents

The recent announcement of TikTok Shop's Black Friday promotions highlights the platform's growing efforts to establish itself in the live shopping space. However, while the deals and incentives may attract some consumers and sellers, Facebook and Instagram still provide more overall value for brands looking to capitalize on this trend.

The article outlines some compelling benefits of using TikTok Shop, such as no seller fees and large audiences. TikTok's immense popularity among younger demographics offers a huge potential reach for brands targeting Gen Z and millennial shoppers. Additionally, the waived selling fees provide an incentive for businesses to experiment with the platform.

TikTok lacks the seamless shopping integration that Instagram and Facebook offer

However, the article fails to address some key factors that give Facebook and Instagram an edge over TikTok for live shopping. Most notably, TikTok lacks the seamless shopping integration that Instagram and Facebook offer. On these platforms, viewers can easily tap to view products and make purchases without leaving the app. This creates a frictionless path from discovery to checkout. TikTok Shop, on the other hand, directs users to third-party sites to complete transactions. This extra step often leads to abandoned carts and lost sales.

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Sprii integrates with Facebook and Instagram to allow viewers to easily make purchases without leaving the app.

Creators will be reluctant to start from scratch

Additionally, shoppable live videos are already ingrained behaviours on Instagram and Facebook. Influencers and brands have been using Instagram Live and Facebook Live for shopping broadcasts long before TikTok entered the space. They have cultivated large followings that are accustomed to buying through these mediums. Fashion, beauty, and lifestyle creators that drive sales through livestreams will be reluctant to start from scratch building audiences on a new platform.

It’s short on creator-focused ecommerce elements

There are also more extensive tools, features, and monetization options for shopping content creators on the Meta platforms. Instagram and Facebook provide robust analytics on views, engagement, website clicks, and more. Also, their affiliate programs integrate directly with live shopping capabilities. And features like shoppable stickers, product tags, and drops make it simple to showcase items. TikTok lacks many of these creator-focused ecommerce elements.

TikTok Shop may see an uptick in activity in the short term from its Black Friday promotions. However, the underlying experience still has significant barriers compared to Instagram and Facebook. Consumers prefer the direct path from discovery to checkout. Influencers gravitate towards the platforms where they can most easily monetize their audiences. And the mature ecommerce capabilities keep brands invested.

"For most brands and retailers, Facebook and Instagram should remain the priority live shopping channels.  

TikTok will need to evolve far beyond deals and no selling fees if they aim to truly compete in this space. Their commerce experience needs to be more embedded, intuitive, and mutually beneficial for both brands and users. The platform clearly recognizes live shopping as an opportunity. But for now, Facebook and Instagram remain the first choice for transitioning video views into sales.

TikTok has potential, but I believe that it currently lacks the depth of commerce capabilities compared to the Meta-owned platforms. For most brands and retailers, Facebook and Instagram should remain the priority live shopping channels.  

But it will be interesting to watch how TikTok Shop evolves in its capabilities in the future.

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Macdara Duncan
International Sales Director
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Macdara Duncan
International Sales Director

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Sprii in Action

During a Live Shopping event, Sprii automatically replies to comments, creates orders for your customers, sends them a link to their basket, and handles payment and shipping.

5. Create hype & excitement during your events

The beauty of Live Shopping is that it can be used in so many ways. This is particularly valuable during Black Friday and Cyber Monday when businesses are looking to engage their viewers in as many ways as possible.

Here are 3 ways to create hype and get customers excited about your Black Friday events so you can achieve your revenue goals.

5. Create hype & excitement during your events

During Black Friday and Cyber Monday, potential customers often experience an intense pressure to participate in the shopping frenzy, driven by the fear that they will miss out on the best deals and discounts if they don't join in.

Live Shopping enables viewers to make purchases instantly while watching the stream, which can be especially effective during Black Friday and Cyber Monday when time-limited deals are available. This instant purchasing capability can drive sales during Live Shopping events.

With Live Shopping, consumers get the personal assistance of an in-store shopping experience and the convenience of being able to shop from the comfort of their own sofa or favorite coffee shop.

Viewers can get information from the retailer in real-time by asking questions directly in the Live Shopping event.

During a live show, viewers can ask questions and get answers in real-time. Even better, they can interact with each other and share their experiences with your products.

AspectTraditional E-Commerce JourneyLive Shopping Journey
Marketing ApproachHigh ad spend and several channels to attract shoppers to webshopLeveraging existing social media followers
NavigationRequires navigating through a static webshop to find products.Requires nothing more than watching a live video to discover new products.
Product PresentationProducts are presented through static images. Products are presented in a live video by engaging hosts.
Customer ExperienceFeels like a business transaction.Feels like a personal connection.
Engagement and InteractionLimited to static product descriptions, images, and occasional customer reviewsOffers real-time interaction between hosts and viewers, allowing for immediate Q&A, live demonstrations, and personalized recommendations
Customer ExperienceCustomers independently navigate the webshop and make purchase decisions without help.Customers are guided through products, receive helpful information, and can ask questions as well as see what others are writing and asking.
Conversion RatesRelies on well-designed websites and optimized marketing funnels to convert visitors into buyers.Often achieves higher conversion rates due to the sense of urgency and interactive nature of live events.
Customer Acquisition Cost (CAC)Higher CAC due to extensive marketing efforts across various channels.Typically lower CAC by leveraging social media followings and organic engagement during live events.
Return RatesHigher return rates due to customers not fully understanding the product before purchase.Lower return rates as live demonstrations provide a clearer understanding of the product, leading to more informed purchasing decisions.
Time to sellCan range from hours to weeks or even months. Often much quicker, ranging from minutes to hours.
Metric Traditional E-Commerce Live Shopping²
 Avg. Conversion Rate 2.5%³  Up to 60% (Sprii Data)
 Avg. View Time 54 seconds⁴ 20+ minutes (Sprii Data)
 Avg. Checkout Rate 45%⁵ 60% (Sprii Data)
 Avg. Return Rate 20-30%⁶ Under 10% (Sprii Data)
 Avg. Customer Acquisition Cost (CAC) +€50⁷ 0*
 Avg. Sales Cycle Hours, weeks, months Minutes