TikTok Gunning for Amazon, FedEx, and UPS?
In a year that brought headlines like “UPS and FedEx are in for reckoning as the e-commerce boom cools and new competitors fight for a shrinking number of packages,” one company is betting on a surge of e-commerce. In a recent job posting, TikTok announced that it is “looking for passionate and talented people to join our global fulfillment center team” to “build an e-commerce ecosystem that is innovative, secure and intuitive for our users.” In this blog post, we’ll discuss what we know about TikTok’s plans for US-based fulfillment centers and whether you need to take action in light of this new development.
What is TikTok planning?
In certain locations worldwide, the social media app offers TikTok Shop in partnership with Shopify. However, it appears that TikTok hopes to bring shopping success in-house.
In a posting for a Seattle-based Business Solutions and Merchant Development Manager position, the company said, “The e-commerce industry has seen tremendous growth in recent years and has become a hotly contested space amongst leading Internet companies, and its future growth cannot be underestimated. With millions of loyal users globally, we believe TikTok is an ideal platform to deliver a brand new and better e-commerce experience to our users.” With over 1 billion active monthly users, it certainly has a ready-made audience.
Is TikTok a threat to FedEx, UPS, and Amazon?
According to Axios, who first reported TikTok’s job listings for fulfillment center staff, it does not appear that TikTok will build an in-house transportation component. This prediction is supported by a job posting for a Los Angeles-based Logistics Solutions Manager, whose responsibilities include “inventory movement among different warehouses, B2B transport, B2C transport, parcel consolidation, direct line-haul, volume forecast and allocation.”
From what’s been reported at this time, the fulfillment centers will support creators and merchants who sell through the platform, and a potential live shopping initiative.
What should you do about TikTok’s new fulfillment venture?
At the moment— nothing. TikTok is building its new logistics arm, but it’s not live yet. TikTok has not yet commented publicly on its intentions for the fulfillment centers, so it’s impossible to know how this initiative will affect businesses over time.
If you’re a company that sells through social media or Amazon, this may be an additional revenue stream for your business in the future. If you’re a business that relies on FedEx and UPS for B2B or B2C movements, TikTok’s new endeavor is unlikely to impact your business model.
There are things you can do that will make a difference on your bottom line without moving to an experimental fulfillment company. ShipRx can help you lower your shipping expenditure through parcel rate negotiations and parcel audits. It’s free to get started with both; we only get paid when you’re saving money. Get in touch with us today and find out how to lower your monthly payments and receive refunds when the carriers don’t deliver as promised.
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