TikTok is ending its practice of sending free traffic to US merchants, transitioning to a pay-to-play model for e-commerce. This shift is particularly challenging for small businesses that relied on the platform for inexpensive marketing. As part of its strategy to enhance profitability, TikTok is asking companies to pay for ads to feature their products. This change mirrors broader trends in the tech industry, where apps like Uber and Airbnb have transitioned to charging more after initial subsidization, often in pursuit of sustainable business models amidst financial scrutiny.
TikTok is shifting away from sending traffic to US merchants for free, requiring businesses to pay for ads to gain visibility on the platform.
Initially, TikTok encouraged merchants by offering free traffic to establish its e-commerce, TikTok Shop, but that strategy is changing as it pivots to a pay-to-play model.
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