• 2 Posts
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Joined 5 months ago
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Cake day: February 14th, 2024

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  • 5% of customers driving 25% of revenue is a market you want to invest in.

    Amazon wasn’t profitable for how many years? It’s the exact same play. Take a loss to create something artificially desirable, strangle the competition and lock up your walled garden, then crank the prices.

    I’ve talked with merchants TikTok Shop recruited, TikTok was paying them a ton to sell there, eating their processing fees, their shipping costs, and paying for massive discounts to customers so they could juice their metrics.

    They’re starting to crank up their fees this spring and summer.

    Same with advertising, advertisers want to go to TikTok, but I’m sure most of the actual spend is happening outside the app on influencers. TikTok wants that pie too.

    Taking a loss means nothing in this context



  • This means absolutely nothing.

    How much of their advertising revenue comes from the US. They have shopping, I’ll bet the US buys the most.

    China already has livestream shopping, it’s still relatively novel in the US. Bytedance has to compete with other local competitors in China, hating a nice external source of revenue in the US fuelling these Chinese battle is a huge boon.

    I know the article says loss making app, but I bet a lot of money goes back to R&D creating the loss. They pay massive sums to get merchants to sell on their app for example.