eCommerce Expo 2024 review: focus on TikTok Shop and why the future of digital commerce is social

Social commerce in the UK is predicted to rise from £7.4 billion to almost £16 billion by 2028, according to a report cited by Nora Zukauskaite, Integrated Marketing Director at TikTok Shop UK, during an eCommerce Expo 2024 debate on 18th September at London’s ExCel, about the future of digital commerce.

“Naturally, I agree,” said Zukauskaite. “Socials are the future.”

She explained to attendees that TikTok UK is now three years old and still growing rapidly, with tools such as its Live Showcasing video and buy presentations - the modern day digital equivalent of a Tupperware party with added data insights.

A Retail Economics report (entitled The Power of Social Commerce) that TikTok UK sponsored this year provides some independent verification for Zukauskaite’s bullishness, and is the source of the figures, as does the interest of youngsters in social media platforms and shopping in closed loop environments.

These have in-built checkout, entertainment and content options via creators intended to build the community.

Sole traders and SMEs can get help marketing their goods on these platforms and tap into the customer base, for a fee of course. Other Software-as-a-Service (SaaS) and unified e-commerce vendors can help sellers with their sales, marketing and operational requirements as well of course, and are increasingly offering content options themselves.   

“We have got a content platform and provide retailers with data insights, tools and services to run their business,” said fellow panellist, Deepak Anand, General Manager for UK & Europe at SHOPLINE, although their customers do tend to be larger.

“We want to be your partner,” added Anand, which is presumably why SHOPLINE don’t charge merchants any fees until they are live, negating any delays in getting a retailer’s digital offering ready for the market. 

“Retailers have realised they are not a technology company,” he continued, “and are returning to their core base of selling [and providing experiences –Ed.]. This trend will only accelerate in the next five years.”     

Retailers aren’t technologists   

Larger multinationals, such as Tesco, might disagree with that as they seek to resell  their fulfilment picking and other technology to other players. But few retailers have Tesco’s scale or an in-house technology department, with its inherent cost but countervailing ability to ensure good integration.

For smaller operators, Anand’s statement is undoubtedly true. As technology advances, the stakes to participate in it are only going to get more expensive if you seek to go it alone. For individual sole traders on TikTok it’s obviously impossible to invest in studios, video, aligned e-commerce checkout, payment tools, data insights and so on – not to mention the delivery. 

Convenience and experiences matter

According to Robert Kulawik, Chief Operating Officer at online operator, Everything5pounds, which is a customer of SHOPLINE and has rebranded as everything but kept the price point: “Providing convenience is the key thing, as we are a lazy species.” 

“We are not a technology firm,” he told the audience in London. “But we can provide an experience. Human connections matter. Don’t let yourself [or your customer base –Ed.] become entirely pixellated and remote.”  

Speaking exclusively to RTIH after the eCommerce Expo conference session, Kulawik explained that it is not just about price for the online clothes and accessories specialist, despite that being its initial offer when everything was established 14 years ago.

It is still part of its approach as a reseller of dead stock. Indeed, recommerce where old goods or dead stock is brought back to market by retailers or even individuals using Vinted is an evident trend in the marketplace.

“You also have to think about what problem you are solving,” said Kulawik. “About if you are providing access to an online community.” Everything has one million registered customers in the UK and actively engages them on social media. “Gamification works in this regard. Don’t just give me another voucher.”   

“It’s always a balance between acquisition costs and profit,” concluded Kulawik during the final Q&A stage of the panel debate, when discussion turned to how best to drive profit back into a business, as retailers’ are increasingly abandoning market share as their over-riding metric.

Getting that balance right between acquisition and the bottomline is the key to success. Technology can help.

But people, in terms of staff and consumers with their positive experiences; processes, in terms of operations and marketing; plus the technology itself must all be properly aligned to ensure long-term success. 

2024 RTIH INNOVATION AWARDS

Social commerce is a key focus area for the sixth edition of the RTIH Innovation Awards, which is now open for entries.

The awards, sponsored by CADS, 3D Cloud, Retail Technology Show 2025, and Business France, celebrate global tech innovation in a fast moving omnichannel world.

It’s free to enter and you can do so across multiple categories.

Key 2024 dates

Friday, 25th October: Award entry deadline 

Tuesday, 29th October: 2024 shortlist revealed

30th October-6th November: Judging days

Thursday, 21st November: Winners announced at the 2024 RTIH Innovation Awards ceremony, to be held at RIBA’s 66 Portland Place HQ in Central London.