TikTok Tests Prime-Like Membership Service in US
TikTok is piloting a new membership program in the United States called TikTok Shop Plus, aiming to enhance its e-commerce competitiveness. The service offers members free delivery and product discounts.
Social media platform TikTok is currently testing a new membership program in the US market that mirrors Amazon Prime's model. According to Business Insider, the service, named TikTok Shop Plus, is integrated into TikTok's e-commerce platform and aims to bolster its online sales capabilities.
The TikTok Shop Plus program offers benefits such as free delivery and discounts on various products. In observed test cases, pricing tiers have included monthly options of $6, $10, and $15. TikTok has not yet commented on the plan or provided an official launch date.
This initiative is part of TikTok's broader strategy to strengthen its US e-commerce operations. A former employee indicated that the membership program is intended to reduce instances where potential customers abandon purchases on TikTok for competitors like Amazon. Other major retailers, including Walmart and Target, utilize similar paid membership models to offer perks like free shipping and exclusive discounts.
TikTok has been observed adopting aspects of Amazon's business model in recent years, including developing logistics and fulfillment services. The company has also recruited numerous former Amazon employees, suggesting a deliberate emulation strategy. While TikTok Shop's US sales are projected to exceed $23 billion this year, it remains significantly smaller than Amazon's. The company aims to build an e-commerce ecosystem comparable to its Chinese counterpart, Douyin.