TikTok is testing a rival to Amazon Prime as it looks to create a US e-commerce giant
TikTok is testing a new membership program for shoppers called TikTok Shop Plus that includes free shipping and exclusive discounts.
Amazon CEO Andy Jassy and TikTok CEO Shou Chew.Michael Buckner/Kevin Lamarque/POOL/AFP/Getty Images.TikTok is testing a membership program for shoppers called TikTok Shop Plus.
Like Amazon Prime, the offering includes discounts, coupons, and free shipping on some items.Shop Plus may help the company build stronger customer loyalty and avoid losing sales to Amazon.TikTok is ripping a page from Amazon's playbook.
The social-video app is testing a Prime-style membership program for some US shoppers, according to screenshots of the offering viewed by Business Insider.The program, called TikTok Shop Plus, is built into Shop, its e-commerce platform. Like Amazon Prime, it offers members a mix of perks like free shipping, product discounts, and coupons.
In one example of the service in action, a hair product normally sold on TikTok for around $57 was discounted to $47 for Plus members, along with free three-day shipping. In another, Plus members were offered a $5 discount on a beauty product that normally costs close to $50.TikTok is testing the Plus service at various price points, including $6, $10, or $15 a month, according to screenshots viewed by Business Insider.
TikTok did not respond to a request for comment.The introduction of a membership program could help TikTok keep its shoppers from leaving its app to make purchases, a former Shop staffer said."TikTok, for a long time, watched a lot of their bottom-funnel buyers go over to Amazon," the ex-staffer said.
People would see an item on TikTok and "run over to Amazon to make a purchase," they added."I think TikTok is really trying to squash that and capture as much of those final conversions as they can," they continued.Other large US e-commerce players like Walmart and Target have offered similar membership programs designed to engender customer loyalty, offering free shipping and special discounts for a fee.
TikTok Shop Plus is the latest in a string of product releases and strategy shifts at the ByteDance-founded comp
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