- TikTok is introducing a feature that lets users subscribe to products to receive repeat shipments.
- The feature is similar to Amazon's subscribe-and-save tool.
- Subscription orders could also help merchants better predict revenue and manage their inventory.
TikTok is rolling out a new feature that allows users to subscribe to repeatedly receive products from its e-commerce platform Shop, according to two Shop partners with knowledge of the tool.
The tool, similar to Amazon's subscribe-and-save feature, encourages users to make repeat purchases of items such as vitamins or snacks in exchange for a discount. Sellers can lock in recurring revenue in return.
The feature could create more predictable revenue for Shop sellers. Some have struggled with inventory management amid sales surges from viral videos or dips after video views drop off.
The Shop partners said the feature is not available to all sellers yet.
"Subscriptions on TikTok Shop are going to add convenience and savings," said Warren Jolly, CEO of the digital-ad firm adQuadrant, which gained early access to the feature. He said the move could keep shoppers consistently buying on TikTok rather than risk having them switch to Amazon or another platform.
Subscriptions are TikTok's latest move to bring its Shop product to parity with e-commerce competitors. It launched in the US in September 2023 following a year of beta testing. The company currently offers a variety of features for sellers, including logistics and fulfillment services and a dedicated app store.
As a relative newcomer, it's gained traction quickly. Last year, TikTok Shop pulled in $100 million in US sales on Black Friday alone. By some measures, such as repeat purchases, it has outperformed incumbents like Walmart.
Of course, TikTok's US e-commerce business could be abruptly cut off in a couple of months. The company is subject to a law that requires its parent company, ByteDance, to divest from the US app or effectively cease operating in the country.
A mix of companies and wealthy individuals have announced bids for TikTok. The company hasn't said whether it's open to a sale. In January, TikTok's lawyer told the Supreme Court that divesting would be "extraordinarily difficult" over any timeline.
TikTok did not respond to a request for comment.
