TapTechNews June 14 - According to the report of Leifeng Net, the group buying and delivery business of TikTok will be migrated to the Dou Store Home Delivery takeout platform, and the self-delivery mini-program takeout business of merchants will not be affected.
Specifically, starting from June 15, the original 'Group Buying Delivery' business of the original Douyin Life Service will no longer add new merchant entries. At the same time, the Dou Store · Home Delivery takeout platform will be launched on June 24, 2024. The group buying and delivery goods are expected to be taken off the shelves on July 15, and there will be no new orders generated.
The report said that TikTok's transfer of the home delivery business from life service to e-commerce is to give full play to the abundant traffic that TikTok is good at and has, bringing more increments to the industry.
According to people close to TikTok e-commerce, in May this year, the total merchandise volume (GMV) of TikTok e-commerce in 2023 is about 2.7 trillion, and the GMV target in 2024 is 4 trillion, an increase of nearly 50%. In comparison, Alibaba's full-year GMV in 2023 is 7.2 trillion, while Pinduoduo's GMV is 4.05 trillion.
In addition, it is reported that in the first quarter of this year, the pre-verification sales of TikTok Life Service (TapTechNews note: mainly composed of on-site catering, on-site comprehensive and wine-travel businesses) exceeded 100 billion yuan, with the growth rate over the same period of last year exceeding 100%, and the same as that in the fourth quarter of last year. The sales of Meituan's on-site businesses in the past two quarters have both stabilized at about 200 billion yuan. Over the past six months, the market shares of both parties have not undergone major changes.
In April, the sales team of TikTok Life Service completed a new round of organizational structure adjustment, striving to cover more small and medium-sized merchants and shorten the gap with competitors.
Insiders revealed that the advertising business will be the focus of TikTok Life Service this year. Compared to mobilizing the sales team to increase sales and earn commissions, guiding merchants to advertise in the platform may be easier to create profits.