TikTok Fulfillment Centers Could Be Coming Soon: What Does this Mean for E-Commerce? Dec 2022

Amazon Marketplace

Tiktok has recently posted multiple Warehousing & Fulfillment job openings to LinkedIn, which some experts have reasonably speculated means TikTok will soon join the world of Fulfillment, and directly challenge Amazon.  

It’s no secret that there is competition between Amazon and Walmart (and even eBay), but historically, TikTok has sat in its own Social Media bucket, separate from the eCommerce giants; however, as most social media platforms tend to evolve, TikTok has become a platform where consumers can find products that they are looking for, and purchase, and it makes sense that TikTok would look to add operational avenues to fulfil customer demands in the future. 

What has been confirmed about TikTok's plans for fulfillment centers?

It's been confirmed that over a dozen job listings were posted by TikTok to LinkedIn for roles to help their International E-Commerce Fulfillment System initiative. TikTok is searching for Business Solutions and Merchant Development Managers to begin development, and Backend Software Engineers, whose job descriptions include setting up internal software, and focusing on and leading fulfillment openings. No public statements have been   made about Fulfillment Centers being launched yet, but we will keep an eye out for any statements released by Tiktok and be sure to update this article as information becomes available in the future.

What may be the reason for TikTok's alleged plans to rival marketplaces?

It’s obvious that they’re aware of the Global Consumer Reach they’ve quickly gained, especially because Covid lockdowns generated a massive increase in the use of the App. According to Startup Talky, Tiktok is the most downloaded app of 2022 globally. This means they surpassed Amazon, Facebook, What’s App and all other commonly used apps on a global scale, and fairly quickly considering the launch of the app in 2016.

Due to the massive success and the millions of consumers who scroll through the app daily, it's safe to assume that Tiktok has an interest in finding ways to further capitalize off that traffic. One impactful way to achieve that for them is to continue expanding by providing fulfillment services on top of their existing Advertising Service for businesses, and profit from the influencers and followers that use the app daily.

What do we expect in the future?

Depending on the success of Tiktok’s fulfillment center, we predict that it’s reasonable to assume Tiktok will begin to rival with Amazon and other Online Marketplaces. Time will tell exactly what ends up playing out – but a future with more competition in the online marketplace space is inevitable, and for companies like TikTok, who already have the customer following and popularity, success is something attainable by taking this next step.

With the constant updates in online marketplaces, it’s important to stay up-to-date with the latest changes. If you are a client looking for additional information, contact your strategist or if you are interested in learning more about how Retail Bloom can assist your brand efforts in online marketplaces, schedule a consultation with our team. 

For more updates on marketplaces, visit our full Marketplace Updates content gallery.

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