FILE - This Monday, Sept. 28, 2020, file photo, shows as logo of a smartphone app TikTok on a user post on a smartphone screen in Tokyo. Canadian e-commerce platform Shopify said Tuesday, Oct. 27, 2020, it’s made a deal with TikTok enabling merchants to create “shoppable” video ads that drive customers to online stores. (AP Photo/Kiichiro Sato, File)

FILE - This Monday, Sept. 28, 2020, file photo, shows as logo of a smartphone app TikTok on a user post on a smartphone screen in Tokyo. Canadian e-commerce platform Shopify said Tuesday, Oct. 27, 2020, it’s made a deal with TikTok enabling merchants to create “shoppable” video ads that drive customers to online stores. (AP Photo/Kiichiro Sato, File)

Video app TikTok leans into e-commerce with Shopify deal

ByteDance, the Beijing-based company that owns TikTok, already runs a thriving social media marketplace

The popular short-form video app TikTok, still under U.S. government scrutiny for its Chinese ownership, is moving closer to becoming a marketplace for buying stuff.

Canadian e-commerce platform Shopify said Tuesday it’s made a deal with TikTok enabling merchants to create “shoppable” video ads that drive customers to online stores.

The partnership was announced Tuesday amid stalled negotiations for Walmart to buy a 7.5% stake in the video app. Walmart’s planned investment is part of a government-forced deal that would rescue TikTok from a threatened ban by President Donald Trump and advance Walmart’s ambitions for the world of “social commerce.”

“If you’re watching a TikTok video and somebody’s got a piece of apparel or an item on it that you really like, what if you could just quickly purchase that item?” Walmart CEO Doug McMillon told CNBC earlier this month. “That’s what we’re seeing happen in countries around the world. And it’s intriguing to us, and we would like to be part of it.”

ByteDance, the Beijing-based company that owns TikTok, already runs a thriving social media marketplace on Douyin, its twin video app for the Chinese market. Buying products through social media websites isn’t yet as common in the U.S., though Pinterest and Facebook-owned Instagram have made some inroads and TikTok last year began making it easier for businesses to link to themselves from the app.

Shopify said its merchants will be able to select which product they would like to promote. Then, video ads will be automatically generated that could show up in a TikTok user’s video feed and drive customers to Shopify for checkout.

TikTok said in a prepared statement Tuesday that Ottawa-based Shopify will be a “perfect partner to help us grow and expand our commerce capabilities globally.”

It’s not clear what the partnership means for TikTok’s negotiations with Walmart. Walmart and Shopify are on good terms, having teamed up against Amazon in June on a deal that enables Shopify’s small businesses to get listed on Walmart.com.

Trump said over the summer he would shut down TikTok unless ByteDance sold its U.S. assets to an American company, citing concerns about the potential for the Chinese government to spy on users’ data.

ByteDance in September proposed to U.S. authorities a partnership with Walmart, California tech company Oracle and other American investors designed to relieve national security concerns about the app. Trump expressed support for the idea but officials haven’t formally approved it.

Trump’s attempt to ban TikTok was also delayed until after next week’s U.S. presidential election after the company sued in federal court to halt the order.

Matt O’Brien, The Associated Press

TikTok

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A rendering of the proposed development at the intersection of Leon Avenue and Water Street. (Contributed)
Massive Leon Ave development coming back to Kelowna council

The towers would stand at 24, 28 and 42 storeys, the largest of which would be the tallest building in the city

COVID-19. (Image courtesy CDC)
Interior Health reports 65 new cases of COVID-19

Province-wide, there are 887 new cases of the virus

The Stuart Park ice rink in January 2020. (Michael Rodriguez - Capital News)
Kelowna’s Stuart Park outdoor ice rink opening delayed

Recent provincial health orders have again shifted the city’s strategy regarding the popular rink

The Rutland IGA is located in Willow Park Shopping Centre at 590 BC-33. (Michael Rodriguez - Kelowna Capital News)
Customer asked to mask up, throws hot coffee at Rutland IGA employee

The woman grabbed cat food on her way out when she refused to wear a mask

Police service dog Fitz helped track and rescue a lost hiker and his dog in Kelowna. (Kelowna RCMP)
Kelowna police dog Fitz dies of cancer

Fitz recently helped locate a lost hiker in the Central Okanagan

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry update the COVID-19 situation at the B.C. legislature, Nov. 23, 2020. (B.C. government)
B.C. sets another COVID-19 record with 887 new cases

Another 13 deaths, ties the highest three days ago

Arthur Topham has been sentenced to one month of house arrest and three years of probation after breaching the terms of his probation. Topham was convicted of promoting hate against Jewish people in 2015. (Photo submitted)
Quesnel man convicted for anti-Semitic website sentenced to house arrest for probation breach

Arthur Topham was convicted of breaching probation following his 2017 sentence for promoting hatred

Langley School District's board office. (Langley Advance Times files)
‘Sick Out’ aims to pressure B.C. schools over masks, class sizes

Parents from Langley and Surrey are worried about COVID safety in classrooms

The baby boy born to Gillian and Dave McIntosh of Abbotsford was released from hospital on Wednesday (Nov. 25) while Gillian continues to fight for her life after being diagnosed with COVID-19.
B.C. mom with COVID-19 still fighting for life while newborn baby now at home

Son was delivered Nov. 10 while Gillian McIntosh was in an induced coma

City of Armstrong Public Works Yard. (Google Maps)
Armstrong city staffer threatened in snow removal complaint

Community services manager says ‘veiled threat’ is believed to have been flippant, but is being taken seriously

B.C. Premier John Horgan, a Star Trek fan, can’t resist a Vulcan salute as he takes the oath of office for a second term in Victoria, Nov. 26, 2020. (B.C. government)
Horgan names 20-member cabinet with same pandemic team

New faces in education, finance, economic recovery

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

The Okanagan Quality Life Society which usually gives tours of Okanagan Lake to seniors and shut-ins on its boat Heaven Can Wait has created a virtual tour video in the wake of the COVID-19 pandemic which shut down the tours in 2020. (Morning Star - file photo)
Okanagan Lake virtual boat tours launched

Okanagan Quality Life Society normally gives tours on Okanagan Lake on its boat Heaven Can Wait

Most Read