Shopify Stock Gains On TikTok Partnership

  • ByteDance Ltd's TikTok announced its e-commerce foray under an expanded partnership with Shopify Inc SHOP. The collaboration dates back to October 2020.
  • TikTok's move pits it against Facebook Inc's FB and Twitter Inc TWTRwhich already have an e-commerce presence.
  • TikTok also disclosed pilot testing TikTok Shopping among a select group of Shopify merchants in the U.S., U.K., and Canada.
  • Soon, Shopify merchants with a TikTok For Business account can add a new "Shopping" tab to their TikTok profiles and sync their product catalogs to create mini-storefronts on their profile TechCrunch reported.
  • However, in TikTok Shopping, the checkout occurs through Shopify, which powers the transaction and payment. In contrast, Instagram Shop scores with a checkout within the app via Facebook Pay.
  • Additionally, Instagram is preparing to launch ads globally on the Instagram Shop tab as per a TechCrunch report.
  • Recently Amazon.com Inc AMZN beat Facebook and Alphabet Inc's GOOG GOOGL ad growth rate from growing e-commerce shift due to the pandemic.
  • Facebook previously added shopping in Reels to compete with TikTok, organized exclusive product Drops into their Shop category, and added affiliate features for creators to earn a commission.
  • Price Action: SHOP shares traded higher by 3.92% at $1,539.53 on the last check Tuesday.
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