Last month, products priced over 100 British pounds generated 41 percent of revenue on TikTok Shop in the United Kingdom. This shows that consumers in the country are placing a high amount of premium purchases on the social media platform. Social commerce is maturing, according to researchers.
These data come from Rithum, which was formerly CommerceHub and ChannelAdvisor, a commerce ecosystem solution for brands, suppliers and retailers. The spike in high-priced items happened during a month when shoppers are traditionally focused on bargain shopping. According to Rithum, consumers in the United Kingdom have defied global retail trends, by turning TikTok into a place for high-ticket items.
15 times higher than global average
The global average of spending on items costing more than 100 British pounds on TikTok is 2.8 percent. This means that the rate in the United Kingdom was 15 times higher in January. And when looking at the total of social commerce in the country, items priced between 100 and 200 British pounds drove 29 percent of revenue in January. The global average was just 1.7 percent.
‘Social commerce maturation in the UK’
According to the researchers, consumers in the United Kingdom are buying products in the categories home & garden and clothing & footwear. “The era of the ‘TikTok trinket’ is over. We are witnessing a massive maturation of social commerce in the UK”, said Philip Hall, MD of Rithum Europe.
“The move to purchasing high-utility items like home appliances and premium clothing over low-cost impulse buys, signals a shift in consumer shopping habits. It is a ‘perfect storm’ of creator trust and brand legitimacy, shoppers are no longer afraid to hit ‘buy’ on an expensive item while scrolling through their feed.”
“To see high-value, considered purchases outpace global averages so significantly proves that TikTok has earned its seat at the table as a legitimate retail powerhouse. The platform has moved from an experimental playground to a primary destination for serious investment.”
‘The move to purchasing high-utility items over low-cost impulse buys signals a shift in consumer habits’
New Amazon integration
TikTok Shop has been increasing in popularity in Europe. After launching in the United Kingdom in late 2021, more than 200,000 businesses were already selling on the platform by 2024. The platform has been expanding in other European countries as well. It has quickly become an important sales channel for European online retailers. Earlier this week, a new TikTok Shop Amazon integration was also launched. This makes it easier for Amazon sellers to list their products on TikTok Shop. It is expected that sales via the platform will increase.
