What is Happening?

Shopify has announced a partnership with TikTok that will allow its more than one million online retailers to advertise their products on the teen-centric video-sharing platform

Shopify said the partnership will allow its merchants to sell product in the form of shoppable video ads, where TikTok users can click on an ad to buy the product.

While the partnership looks good for both parties, a U.S. appeals court hearing is expected on November 4 to decide on whether to allow the U.S. government to bar transactions with TikTok. Meaning that TikTok would have its use effectively banned in the United States.

What Does it Mean?

As live commerce grows, the partnership will naturally benefit both TikTok and Shopify.

VP of Product at Shopify Satish Kanwar said: "We're thrilled to be the first partner to welcome TikTok to the world of commerce, particularly right now, as our merchants prepare for a busy online holiday shopping season".

📈 Despite the scrutiny TikTok has been under, the partnership is a good thing for Shopify merchants looking to diversify their demand generation activity and spend away from Facebook. Provided products are a match for the TikTok demographic, we can see that the partnership will also benefit brands.

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