Analysis on the Development Potential of E-commerce in TikTok under the “FACT+” Operation Matrix

Abstract

In today’s digital age, which covers all aspects, e-commerce business profoundly impacts people’s lives. Since its development, China’s e-commerce industry has gone through an initial stage, an initial stage of competition, a stage of rapid growth, a stage of steady development, and a stage of emerging changes. The “short video+live broadcast+e-commerce” three-in-one platform created by “TikTok” brings together people, goods, content, and scenes, enabling the content to spread. Direct broadcasting with interests is the most popular shopping guide type of marketing. Combining direct broadcasting with a short video platform and giving full play to the marketing effectiveness of 1+1>2, which can deepen the understanding of the brand and products and realize full interaction with the audience. In the future, it will become the standard of enterprise marketing plans. Although the three e-commerce giants Taobao, JD.COM, and Pinduoduo together accounted for 88% of the market share in 2021, TikTok e-commerce, as a dark horse in the emerging stage of change, has also received more and more attention. Based on the above background, this study will analyze the development potential of e-commerce in TikTok. This paper first introduces the operation model of e-commerce with interest and the operation matrix of “FACT+” and studies the advantages and disadvantages of e-commerce in TikTok under the “FACT+” matrix. Finally, it suggests improving the re-purchase rate of consumers, raising the access threshold, and perfecting the platform management mechanism.