TikTok Not Building Fulfillment Centers But Wants To Ensure Consumer Experience

TikTok Building "App Store for Logistics" For International Creators

Axios scooped a story that said they are connecting the Tiktok eCommerce Shop experience in the US to a Fulfillment Network. I verified the same job listings, particularly Trust & Safety roles, Merchant product onboarding, inventory visibility and placement, demand forecasting, connectivity with logistics providers, customs clearance and warehouses, and performance monitoring.

In short, I think Bytedance follows Alibaba's lead with how a popular marketplace helps its brands handle promotional demand. If an American brand wants a promotion on Singles Day in China, you must have forward-deployed inventory in Cainiao warehouses.

The motivation? Social networks can do much damage and can be havens for fraud, counterfeits, and international rule-breaking (who can sell what/where legally). If consumers don't have a great experience, they lose trust, and creators can't monetize effectively. It's about their coveted influencer and advertiser audience.

The workflow will be like this. An internationally famous creator has established a major following on the network and is now partnered with manufacturers and wants to give exclusive drops to their fans worldwide. These creators are not necessarily international retailers but need to act like them.

I came up with a basic set of questions that Tiktok executives must be able to answer reliably and efficiently:

1 - How much traffic and interest will this offer generate?

2 - What will the conversion rate be by country?

3 - How much inventory should I secure for this promotion?

4 - What countries can I legally sell this to?

5 - What is the most efficient way to clear customs into each country I need to deploy inventory?

6 - Where should inventory be deployed in each country based on demand patterns?

7 - How much inventory should I put in each location?

8 - Which supply chain providers should I work with to make this happen?

If Tiktok is the best in the world at answering these questions, it's a flywheel for their business. This is a boon for logistics providers and infrastructure startups in those markets.

Tiktok will need to set standards and build connectivity to all players -- including Amazon Logistics, Shopify Logistics, Maersk, Flexport, and many others.

Call it the Tiktok App Store for Logistics that creators can choose from. Its information flows seamlessly into the creator's portal and a governance mechanism to keep the system legal and performant.

The question remains, will social commerce on this scale work? History tells us yes. The top platforms are different, and Tiktok has a definite chance of succeeding whether others like Meta have struggled.