A weekly breakdown for ecommerce leaders scaling TikTok Shop. The creator systems, benchmarks, and data driving GMV for top brands and client accounts - ready for you to replicate and use. Every Tuesday.
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Glamnetic does $130M a year selling press on nails. Their co-founder says they lose over a million dollars a year on TikTok. He also says it’s worth it. That comes from a Marketers and Money article that was shared in my TikTok mastermind circles. “Ulta Beauty CMO Kelly Mahoney has to convince her CFO that creator content is “working media”, and said its TikTok Shop launch stalled on business cases until the team reclassified it as a marketing channel, not retail.”
“$130m press-on nails and lashes brand Glamnetic “loses over a million dollars a year” on TikTok, and makes “no money on TikTok Shop”. But co-founder Kevin Gould says it’s worth it, because the awareness “halo” is “driving the retail sales”.”
Both the CMO and co-founder know that measurement of halo sales is not perfect, but they're confident that TikTok drives sales across channels. My friend, Paul Jauregui, who runs BK Beauty says the same. On a webinar we did together last week, he said "For new [to TikTok] brands, TikTok is still the greatest discovery engine out there." If you need one more voice, here is Joel Contartese, VP of Growth at Bloom: “[TikTok is] mindshare at a scale and frequency that used to cost a fortune to reach, millions of people seeing your product over and over through creators they actually relate to.
You could never buy that kind of visibility efficiently through traditional media, and here it comes attached to a channel that’s also generating sales and feeding demand everywhere else you sell.
Once you look at it that way, the economics on any single order stop being the point.”
Feel free to forward those to your leadership team if you're still working to get buy-in for the channel. They are more likely to listen when it comes from a peer. Same with my kids. :) On the flipside, some of you have a leadership team that is ready and excited to go. Your challenge is to explain how TikTok works to them, your team, and stakeholders. When you read LinkedIn or talk to peers, it sounds complex: creators, samples, advertising, fulfillment, measurement, and everything else. But it comes down to doing just 5 things well. Do those 5 well and you will be years ahead of most teams. New this week: Amazon CornerBefore TikTok, I spent 9 years building AmpliSell as an Amazon-only agency. When I ask on calls what else you’re trying to get to perform, Amazon comes up almost every time. So you will get Amazon strategies and tips here and if you all tell me this is great, I can expand it. A month ago Amazon ran Accelerate and Unboxed, where they release the year’s new features. The #1 thing you have to pay attention to is that Amazon is going all-in on the "Alexa for Shopping" AI chatbot. They released Sponsored Prompts and now they are releasing a new feature called Branded Conversations that will allow you, the seller/manufacturer, to feed data about your product into "Alexa for Shopping" [man I hate that name]. Look, the traditional search bar will go away. Probably not tomorrow, but eventually the new way people will find product on Amazon will be to have a conversation with their chatbot. For us as ecommerce leaders we have to ensure that we show up in Alexa for Shopping in addition to the traditional search bar. It's a lot to unpack in a newsletter, so I recorded a video on how to do just that: Running an RFP or looking for the right Amazon or TikTok partner for 2027?
Cheers, |
A weekly breakdown for ecommerce leaders scaling TikTok Shop. The creator systems, benchmarks, and data driving GMV for top brands and client accounts - ready for you to replicate and use. Every Tuesday.