TikTok Shop looks to woo small businesses with accelerators

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Amid a looming ban on its platform, TikTok Shop has launched its Supporting Our Artisans and Retailers Together Program, which aims to provide the resources and support for small businesses to scale on its platform, the social media company announced Tuesday.
As part of the effort, the social media company has debuted the Women-Owned TikTok Shop Accelerator, during which 15 U.S. businesses will participate in a six-week program and learn skills such as analyzing social media metrics and engaging with influencers, the company said. To provide these resources, the company teamed up with the Conscious Commerce Accelerator and the Association of Women’s Business Centers.
The company also partnered with StartOut to provide 30 LGBTQIA+-owned businesses in the U.S. with scholarships for StartOut’s Founders Program, where they will receive mentorship, networking opportunities and other resources to grow their businesses, per the press release.

Dive Insight:

The launch of TikTok’s small business accelerator initiatives follows the U.S. debut of TikTok Shop last September. The in-app e-commerce space allows merchants to connect with millions of users on the platform and create custom product collections on their business profiles. Through the Women-Owned TikTok Shop Accelerator, participants will learn the basics of navigating TikTok Shop, among other skills, the company said.

“It’s important that entrepreneurs of all backgrounds on TikTok Shop feel supported in order to continue thriving in their creative and business endeavors,” Nico Le Bourgeois, head of TikTok Shop operations in the U.S., said in a statement about the small-business initiatives. “By the end of the program, we hope participating sellers and creators feel even more empowered for the endless possibilities ahead for them on TikTok Shop.”

As TikTok provides training for small businesses to use TikTok Shop, research suggests that the platform is not as popular among American consumers as it is with Chinese users. A YouGov report released in May found that 86% of TikTok users know about TikTok Shop, but under a third (31%) have bought something from the platform. Meanwhile, over a fourth (28%) have never visited TikTok Shop.

Though U.S. consumers have not fully adopted the shopping platform, TikTok Shop has attracted many shoppers who also buy products from fast-fashion retailers Shein and Temu. An Earnest Analytics report published this spring said that 28% of Shein shoppers also made purchases via TikTok Shop in the past 12 months. Plus, a quarter of Temu shoppers also bought items from TikTok in that same period.

Even as TikTok tries to attract American shoppers and small businesses to the platform, the social network is facing a ban. In April, Congress passed a bill that would force TikTok to sell itself to a new owner, and President Joe Biden signed that bill into law. In a statement following the passage of the law, TikTok called the ban unconstitutional and said it would challenge the law in court.