TikTok Shop Releases New Policies, Injecting New Vitality into Cross-border E-commerce in the US

As the economic outlook improves, consumer confidence in the United States rose unexpectedly in May. Data released by the Conference Board on May 28 showed that the consumer confidence index rose to 102, and the data for April was revised upward to 97.5. The consumer confidence index in May exceeded the expectations of surveyed economists.

01 Only when new policies are implemented promptly can new opportunities be brought to merchants.

At this time, TikTok Shop has released an extremely influential new incentive policy, which is like presenting an "accelerator" to cross-border merchants in the US region. Hugo Cross-border has learned that on June 3, TikTok Shop's cross-border e-commerce has launched a "100-Million-Dollar Club" special policy, through a series of special incentives and rich resource support, fully assisting more and more cross-border self-operated merchants to achieve a significant breakthrough of a GMV of 100 million US dollars in the US region as soon as possible. This undoubtedly indicates that more emerging brands will emerge on TikTok Shop.

Regarding this released incentive policy, Mu Qing, Vice President of TikTok Shop Cross-border E-commerce, said, "The platform will continue to support the operation and sustainable development of all kinds of merchants. Some early-entrance and invested cross-border merchants have achieved success in multiple global markets. We expect to assist more cross-border merchants to grow through this incentive policy, a package of e-commerce solutions, and resource support, leading new consumption trends and trends. At the same time, we also hope to promote the positive impact of TikTok Shop's cross-border business on the e-commerce ecosystem."

It is learned that once merchants enter the "100-Million-Dollar Club", they can obtain the all-round support plan provided by TikTok Shop. For example, the platform will not only offer "real money" subsidies but also provide commission reduction based on incremental GMV and commission reduction when the self-broadcasting GMV achieves the target. At the same time, TikTok Shop will provide specialized promotion support for merchants in the 100-Million-Dollar Club, allowing them to enjoy the tilt of resources in the shelf and content field and the priority connection of platform resources. In addition, the rights and interests of the "100-Million-Dollar Club" extend to many fields such as explosive products, logistics, and governance guarantees.

The "100-Million-Dollar Club" special policy covers five key rights and interests: governance guarantee, commission reduction, logistics support, special plans for potential explosive products, and priority participation in brand marketing and major promotion resources. Hugo Cross-border further learned that this policy will be preferentially open to some key cross-border self-operated merchants of TikTok Shop in the US region.

In fact, for cross-border e-commerce merchants, it is not easy to break through the transaction scale of 100 million US dollars and obtain the qualification to compete with traditional leading brands. And TikTok Shop has been officially launched in the US station for less than a year and is in the stage of rapid rise of the content e-commerce platform channel, providing an excellent opportunity for brands to achieve overtaking curves.

02 Whether the policy is good or not, let's see what sellers say

The US market is vigorous in consumption and has always been one of the preferred positions for cross-border going overseas. The latest data show that the number of monthly active users of TikTok in the US has reached 170 million, and nearly 60% of US users expressed their willingness to increase consumption on TikTok Shop. However, precise customer acquisition, brand spillover, and efficient leveraging of sales increment are still potential pain points for cross-border merchants. At the same time, reports from the third-party data agency Statista show that as of April 2024, TikTok has exceeded 4.92 billion global downloads and more than 1.582 billion monthly active users. It is undoubtedly one of the most popular social platforms in the world, and the TikTok platform, which represents the cutting-edge trend, also attracts the younger generation of consumer groups.

As an e-commerce platform, TikTok Shop not only has the advantage of new channels but also holds the new consumer group and will surely become an important birthplace of emerging brands. Some merchants who actively embrace TikTok Shop and participate in the "100-Million-Dollar Club" have already tasted the sweetness first.

For example, the cross-border enterprise Hengjian Home Furnishing in the home furnishing category, with the guidance and help of the TikTok Shop operation team, quickly formed a considerable sales volume. Hengjian Home Furnishing took only two months to build its brand, Sweet Furniture, from a "beginner" to the "category number one", becoming a dark horse in the home furnishing field on TikTok Shop in the US region. Jason, the CEO of Hengjian Home Furnishing, told Hugo Cross-border, "We will continue to explore various rich gameplay of the platform, gradually expand warehouses and products, and continuously break through the boundaries of business growth in the US region." Another example is the clothing brand OQQ, which works closely with the platform team, attaches great importance to cooperation with experts and short-video promotion, and continues to carry out break-through marketing, growing into a "benchmark for expert marketing" in the TikTok Shop ecosystem.

Currently, OQQ has not only achieved a sharp increase in brand label views to 400 million times but also achieved a multiple increase in sales. The beauty and personal care category Wavytalk, after mastering the dual-driven thinking of shelf and content e-commerce, has obtained more than 2 billion exposures in the TikTok Shop ecosystem, achieving sales of over 10,000 orders per day, realizing a concentrated outbreak of brand reputation, user mindsets, and business transformation.

For merchants, through TikTok, they can obtain more traffic, reach a wider consumer circle, and achieve double high growth of reputation and sales through the content bombing of short videos and live broadcasts and the deep cultivation of the mall field, promoting the brand to break through and grow. And now, the "100-Million-Dollar Club" launched by TikTok Shop has opened the door of rapid development of brands for key merchants, helping them achieve rapid business breakthroughs.

In fact, the "100-Million-Dollar Club" policy of TikTok Shop provides a rare development opportunity for cross-border merchants in the US region. On this platform, brands and merchants can not only obtain more traffic and sales opportunities but also achieve the rapid rise of the brand with the all-round support of the platform. This undoubtedly injects new vitality into the global e-commerce market and indicates that the e-commerce industry is about to usher in a new development climax.

From an industry perspective, some cross-border brands have accumulated a large number of loyal users quickly through precise marketing and content creation on the TikTok Shop platform, thereby achieving significant growth in performance. Therefore, this new policy measure of TikTok Shop is of great significance and will bring new hopes and opportunities for cross-border merchants. It is believed that in the future, more cross-border merchants will achieve breakthroughs and development on TikTok Shop and jointly promote the cross-border e-commerce industry to a new height.