E-commerce brands preparing for Black Friday and Cyber Monday this year could be in for a treat. TikTok has announced that it will begin subsidizing discounts for its sellers who use its newly launched TikTok Shop — hoping to gain a strong foothold right out of the gate with US shoppers during the holiday season, Bloomberg reported.
Brands, like Amazon, Walmart, Facebook, and Instagram, may need to prepare themselves for some stark competition.
With plans to subsidize discounts as high as a whopping 50%, a spokesperson for TikTok has confirmed to Bloomberg that official deals will start at 8 pm on November 23rd and deals for Cyber Monday will run from November 28th to November 30th.
This doesn’t merely ring in a price war, as many analysts suggest.
This may also usher in a battle for the brands between the paid social ads platforms, in particular, this coming sales season.
Steeper discounts to consumers often translate to higher conversion rates for e-commerce brands selling products. This bodes well for greater cost-efficiency and stronger front-end profitability on advertising for e-commerce brands selling products online.
In other words, e-commerce companies gearing up for the holidays may consider last-minute shifts in how they allocate ad spending across paid social platforms and other channels, in TikTok’s favor.