TikTok's Next Chapter: Helping Creators Build Brands and Sell Products

TikTok is reportedly taking steps to connect manufacturers with creators to help them develop and sell their own products on its e-commerce platform TikTok Shop, according to Business Insider.

If true, this would allow creators to sell custom products to their TikTok followers, and seeing as many creators are going down the entrepreneurial path in order to sustain their income for longer, it seems like a strategic move from TikTok.

Influencer brands and products are nothing new, from MrBeast to Molly-Mae, top creators have successfully leveraged their audiences to sell relevant products. However, for smaller creators, launching such businesses can be more difficult. That said, smaller creators with a dedicated niche could be just as successful as their larger counterparts.

While platforms already exist to help creators break into product development, TikTok holds a unique advantage due to its strong relationships with both creators and manufacturers.

Currently, many sellers on TikTok Shop are third-party companies, but TikTok also operates its own first-party marketplace, where it sources products from manufacturers and handles marketing and logistics in-house. This approach creates operational efficiencies and allows the platform to increase its revenue. Additionally, TikTok connects those manufacturers and sellers with TikTok Shop agencies, to help distribute free samples to influencers in order to drive up promotions of products. Through shop sales driven from their video, creators can earn a commission.

By directly linking manufacturers with creators, TikTok could help boost sales even further, which is something that has been a priority for the company since the feature first launched in September 2023. Recently, the company hosted its first US summit for Shop partners, where it encouraged agencies to work with brands on more livestream selling.

Of course, these efforts could be significantly stunted, at least in the US, if the federal ban comes into effect in January. Whilst TikTok is challenging the law, reports suggest it isn’t looking good. The situation worsened recently after internal documents were leaked, revealing the company’s awareness of the platform's harmful effects on users, particularly young people.