Short-form video company TikTok is making plans to deepen its foray into the e-commerce industry as it plans on building warehouses in the United States.
This move signifies TikTok’s commitment to e-commerce as its next major revenue stream, following the explosive growth of its ads business.
In the past two weeks, the social media company has posted several job listings on its LinkedIn page, where it stated that it was looking for candidates to help develop and grow its “Fulfillment by TikTok Shop” in the U.S, to accommodate sellers using the app. According to the listings, TikTok plans to provide warehousing, delivery, and item return options to sellers.
One of the job listings reads “By providing warehousing, delivery, and customer service returns, our mission is to help sellers improve their operational capability and efficiency, provide buyers a satisfying shopping experience and ensure fast and sustainable growth of TikTok Shop.
“The e-commerce industry has seen tremendous growth in recent years and has become a hotly contested space amongst leading Internet companies, and its future growth cannot be underestimated. With millions of loyal users globally, we believe TikTok is an ideal platform to deliver a brand new and better e-commerce experience to our users.”
Following its massive audience base, which has seen it gain dominance in the social media space, TikTok seeks to leverage on its growing customer base by adding an additional source of revenue with its recent plans to debut into the e-commerce sector.
TikTok would no doubt face strong competition from established competitors, the likes of Amazon and Walmart who are dominating the e-commerce sector. However, the social media company is optimistic about making a significant impact in the industry in the nearest future.
Meanwhile, analyst Michael Pachter an American video game, social media, digital media and electronics analyst at Wedbush Securities, is doubtful that TikTok will make any significant impact in the e-commerce industry, he said, “It’s idiotic. “They have no chance of competing and it is a complete waste of money and time.”
Jumia Nigeria Appoints Sunil Natraj as CEO, Outlines Ambitious Expansion Plans
Former Jumia Ghana CEO to Lead E-Commerce Giant as Massimiliano Spalazzi Steps Down
Jumia Nigeria, a prominent player in the e-commerce sector, has announced the appointment of Sunil Natraj as its new CEO.
Natraj, the former CEO of Jumia Ghana, will take the helm of the e-commerce business in January 2024, succeeding Massimiliano Spalazzi, who has been with Jumia Group for 11 years and will be stepping down in December 2023.
The announcement came during a media parley held in Yaba, Lagos, Nigeria, with Francis Dufay, the CEO of Jumia Group, unveiling Natraj as the new leader.
Natraj expressed Jumia’s commitment to becoming a truly Nigerian company and continuing the initiatives started by Spalazzi.
“We want to continue what Spalazzi started,” Natraj stated, emphasizing Jumia’s vision to expand its presence beyond Lagos.
He disclosed plans to extend operations to additional Nigerian cities, with Akure and Ilorin on the radar and a focus on cities en route to Ibadan, Warri, and Benin in the first quarter of 2024.
The overarching strategy is to create a comprehensive network covering the entire country.
Dufay outlined the ambitious goal of targeting cities with populations exceeding 20,000 people, citing successful precedents in Ghana, Cote d’Ivoire, and Senegal.
He acknowledged the challenges faced by Jumia, including a workforce reduction in Q4 2022 and a 73% cut in advertising budgets in Q3 2023.
Despite the hurdles, Dufay highlighted Nigeria as Jumia’s largest market and affirmed the company’s determination to navigate and thrive in the ever-evolving e-commerce landscape.
Alibaba Faces Rare Downgrade as PDD Surpasses It in Market Value
Alibaba Scraps $11 Billion Cloud Spinoff Plans Over Chip Sales Woes
Alibaba Group Holding Ltd. has abandoned its $11 billion cloud business spinoff and public listing plans, citing the escalating US-China technological rivalry.
Chairman Joseph Tsai and CEO Eddie Wu, acknowledging the need for a “reset,” pointed to the increasing US restrictions on chip sales to China as a driving factor in the decision.
Wu emphasized the imperative to provide “cash to make investments” in the AI-driven landscape, requiring a robust and highly scaled infrastructure.
Wall Street responded swiftly to the surprise move, with Alibaba’s shares plummeting 9.1% in New York trading, wiping out over $20 billion of market value, marking their most substantial drop in over a year.
The decision comes amid Alibaba’s efforts to recover from the pandemic, navigate China’s tech industry crackdown, and compete with emerging players like PDD Holdings and ByteDance’s Douyin.
The Biden administration’s stringent export controls on chips critical for Alibaba’s cloud services, designed for AI use, played a pivotal role.
The cloud business, essential for Alibaba’s AI initiatives, faces challenges due to the US sanctions impacting chip supplies.
Instead of the spinoff, Alibaba will focus on organic growth for the cloud unit and issue its inaugural annual dividend of $2.5 billion.
This surprising move reflects the challenges posed by US-China tensions and underscores the complexities Chinese tech giants face in navigating global geopolitical issues.
“The strength of the business itself is an issue.” – Li Chengdong, Head of Haitun Technology Think Tank.
“The market is scratching its head. The first annual dividend looks like compensation to shareholders.
However, it may not fully offset the shock given the higher value of the cloud unit.” – Willer Chen, Research Analyst at Forsyth Barr Asia.
Business3 weeks ago
Nigeria’s Logistics Sector Holds Untapped N3tn Potential, Says Courier and Logistics Management Institute
Black Market Rate4 weeks ago
Black Market Exchange Rate Today 14th November 2023
News4 weeks ago
Millionaire Powerplay Limited Unveils Unprecedented Odds in American Lotto’s Instant Cashless Payout
Forex3 weeks ago
Black Market Exchange Rate Today 16th November 2023
Forex4 weeks ago
Black Market Exchange Rate Today 10th November 2023
Black Market Rate3 weeks ago
Black Market Exchange Rate Today 21st November 2023
Telecommunications4 weeks ago
Airtel Africa Announces Interim Dividend Amidst Robust Half-Year Performance
Naira4 weeks ago
N-Power Dismisses Fake Recruitment Reports, Highlights Ongoing Payment Resolutions