The Shopify e-commerce company announced on Tuesday that they are doing a partnership with TikTok to help it’s one million-plus merchant to advertise their products on TikTok in a bid to grow its customer base.
This partnership can be seen as a proposal for Walmart to buy TikTok which is struggling in the U.S due to Chinese-U.S trade war.
According to Shopify, this deal will allow their merchants to sell their products in form of shoppable video ads, and TikTok user can buy the product by clicking on the ad. It will increase Shopify sales because all transactions will go through Shopify.
The vice president of Product at Shopify said that they are excited to be the first partner of Tiktok and we welcome them to the e-commerce world at this important busy time when people do holiday shopping.
Blake Chandlee, Vice President, Global Business Solutions at TikTok said that Shopify is the perfect choice to help us grow and expand our commerce capabilities worldwide. He further said that TikTok is always looking for new ways to connect brands with its users. There are no financial details were revealed by both companies about the partnership.
Walmart wants to increase its younger customer and company has been looking for a deal but due to political uncertainty, Walmart is hesitating to invest in TikTok.
It is important to know that Walmart already has an agreement with Shopify to expand its online marketplace and Walmart is looking to capture more market share of online business.