The 59 -second video, in vertical format, shows a group of children in front of a television with a video game console. The person who records is addressed to the little ones and increasing them: «But what is that shit, children? What is that why?» He pulls the TV with his free hand and announces that he brings them «the best.» Children celebrate to see it. In his hand he holds what seems like a Play Station 5 control, but it is not Sony’s device. It is an imitation that through a transmitter connects to TV and allows access to a content of more than 10,000 titles. «Bring all the games that have always wanted to play.» It is offered by the Jaurking user on the Tiktok platform with a cost of 540 pesos. Since its implementation in February in Mexico, the Chinese social network has introduced its electronic commerce platform and has combined it with its successful entertainment model. The result? Thousands of content creators selling from clothing, technology, home devices to vitamins. Mexico is the first Latin American country to launch this sales platform that is integrated into the same app, following the steps of Indonesia, Thailand, Philippines, Malaysia, Vietnam, Singapore, the United Kingdom, Ireland, Spain and the United States, where it is also available. During these first six months, brands, small businesses and entrepreneurs have made Tiktok Shop a tool to generate income, combining short video formats, live broadcasts and real -time interaction with users. Geovanni Urias, 36, better known in Tiktok as a Jaurking, is a publicist by profession. It has almost 400,000 followers. Its content was humorous, but since the sales platform was implemented in Mexico, it decided to «cover everything.» He has made videos selling makeup, technology products and even women’s clothes have been tested. «Every product that comes to me I see it as a challenge of making a good video. The truth is earned quite well,» he explains by video call. It is about 90% of the stores that sell inside Tiktok are of Chinese origin. Thanks to the social network algorithm, it allows sellers to select content creators according to the type of videos they make, the public they are directed, the gender and age they reach. In this way, they contact them, they offer free samples to try their products and, without being mandatory, they can make a video to market it. Influencers can also contact vendors and request products to sell them on their channel. Sale commissions, according to Urias, can range from 5 to 30%, according to each negotiation.
Tiktok Shop, a land of opportunities
Urias, which operates its business from Tamaulipas and creates an average of 22 videos per day offering products, has seen in the last three months an increase of 1,400% in its monthly income. But they are not just content creators. According to Tiktok data in Mexico, technology companies such as Steren reached a 370% increase in sales and completed more than 300 orders during its Hot Sale campaign. Panam, the National Footwear Brand, used Tiktok Shop during his Mother’s Day campaign with live broadcasts and achieved more than 29,000 pesos for sale in a single direct. Jose Enrique Barrón, 27, began in February to sell at Tiktok Shop halfway. It was in May when he dedicated all his time after being fired from the company where he worked as a computational engineer. The content that generated on the platform was mainly on finance. Now it is dedicated to selling technological products. One of his best -selling merchandise were imitations of the Airpods, Apple. The seller who contacted his video and paid for advertising to reach more public. This reached 3.3 million views and 1,400 units sold. It explains that as a creator of content the platform charges the due commissions. It sets as an example that if you have a product that costs 99 pesos, subtracting the Value Added Tax (VAT) and the Income Tax (ISR), it has a gain of 7.87 pesos. In its first month it generated 6,800 pesos, as a half -weather work. «The month of June I generated 30,800 pesos, until August arrived and I billed my highest amount, 70,000 pesos after taxes,» says Tiktok, Tiktok put as a requirement that the content creators had at least 2,000 followers to be able to enter their sales program. Now he removed that requirement and any influencer can start selling. Humberto Maciel is a specialist in electronic commerce and is dedicated full time to sell on digital platforms such as Amazon, Mercado Libre and now Tiktok Shop. He owns a store inside the platform and contacts content creators to sell their products. He thinks that the purchase and sale model that has implemented the Chinese social network has come to stay. According to their experience, the current success of the platform emphasizes in the talent of influencers and how they intend to move the emotional fibers of people to achieve many sales. They also influence aspects such as the trust, experience and sympathy of content creators, although it is not always a factor that defines the purchasing decisions of users. «Tiktok’s videos do it very well. A photo of a static product is different from which you can see a content creator using the product, how it is made up, if the person recommends it or not. I think that is very influenced by your decision making,» he explains. Sellers, most of Chinese origin, establish communication with content creators with the help of translators through automatic services. Maciel says that a large majority, although it does not specify how many, have their wineries in Mexico. While the Ministry of Security and Citizen Protection, of the NAW and the Mexican Institute of Industrial Property dedicated their time to seized merchandise and to close commercial premises, many of these Chinese businesses have jumped to the digital plane to materialize their sales. content. He also says that while Amazon or Mercado Libre charges them a commission between 12 and 15% plus shipping, the Platform for the sale of the Chinese social network charges 6% for the use of the platform. Additionally, they charge them another 6%, for the SFP (shipping rate program, in Spanish), an initiative of the company for sellers that allows them to offer promotions in their products, which can increase the visibility and conversions of their stores. «The advantage is that I have a two -year subsidy in which Tiktok Shop does not charge me for shipments. It is a platform that is betting on the future and is very competitive. It is very cheap,» Maciel explains. However, with the growth that this electronic market carries and with the withdrawal of some restrictions, content creators have begun to see more competition and a saturation of sale content. Maciel, in his seller’s facet, sees this positive growth. But as an entertainment consumer of the platform, he considers that the social network of videos must be careful and think about a strategy to segment its contents. «Where this becomes nothing more, people are going to get tired, they will get bored, enter and see promotions, purchases, people are also saturated,» Maciel concludes. At the moment, Tiktok Shop is a land of opportunities for all that seeks to settle and compete from you from you to you with their great competitors.
