TikTok’s e-commerce expansion: What to expect in Italy.

TikTok E-commerce Expansion in Europe

TikTok’s e-commerce platform is set to make its debut in Europe, with Spain and Ireland being the first countries to welcome the in-app shopping feature in October 2024, as reported by Bloomberg.
This move is expected to boost TikTok’s growth in the European market, which has been steadily increasing.
However, Italy will have to wait a bit longer for this feature to arrive on its shores.

Rollout Strategy and Growth Plans

Contrary to previous expectations, the launch of TikTok’s shopping platform will be more gradual.
ByteDance Ltd.
is reportedly preparing to introduce TikTok Shop to other European countries throughout 2025.
Sources cited by Bloomberg reveal that TikTok Shop has already assembled a team of around 40 employees in Spain, making it one of the company’s e-commerce hubs in Europe.
ByteDance is actively hiring Spanish-speaking professionals in Madrid and London for various roles supporting TikTok Shop, from logistics to compliance.

Challenges and Regulatory Considerations

The phased approach to TikTok’s expansion in Europe may indicate a strategic effort to avoid drawing the scrutiny of European authorities.
The EU Court has previously ruled that the Chinese social media platform must comply with new legislation restricting the operations of major tech companies.
Additionally, European regulatory bodies are investigating TikTok for potential harm to children.

Originally, TikTok had planned to introduce its Shop not only in Spain and Ireland but also in Italy, Germany, and France by early 2024.
However, these plans were put on hold to prioritize the platform’s implementation in the United States, TikTok’s largest market with 170 million monthly users.
The company aims to grow its US Shop business to reach $17.5 billion.

Understanding TikTok Shop

TikTok Shop merges engaging video content with the impulse to make in-app purchases.
With its viral videos, widespread influencer presence, and global popularity, TikTok stands out from traditional social media platforms like Instagram and YouTube.
By integrating e-commerce functionality, TikTok aligns its business model more closely with that of Amazon.

So, how does TikTok’s e-commerce feature work? It’s simple: users watch a video or a live stream where a creator showcases or discusses a product.
The video includes a link redirecting viewers to a website where they can learn more about the product and make a purchase.
After completing the purchase, users can seamlessly return to TikTok to explore more content.

This shopping model has seen success in China, where live-streaming e-commerce is extensively utilized by platforms like Douyin (TikTok’s Chinese counterpart), Kuaishou, and even WeChat.
Despite a general consumption slowdown, this purchasing method continues to thrive.
Goldman Sachs predicts an 18% annual increase in the value of goods sold through live streaming in China over the next two years, surpassing the 11% growth of traditional e-commerce.