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Shopify Partners with TikTok to Enable In-App Shopping
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Shopify Partners with TikTok to Enable In-App Shopping

Shopify (SHOP) has set its sights on TikTok’s growing popularity as it looks to make it easier for merchants to grow their business and connect better with consumers. Consequently, the e-commerce heavyweight has partnered with the viral short-video platform to offer new ways for entrepreneurs to reach consumers via TikTok shopping.

Shopify merchants that are using TikTok for business accounts will soon be able to add a shopping tab to their profiles to make it easier for TikTok users to place purchases. Additionally, the merchants will be allowed to synchronize their product catalogs and create storefronts that link back to their online stores for checkout. (See Shopify stock charts on TipRanks)

The TikTok integration should allow merchants to grow their businesses and connect with audiences in more ways while leveraging viral videos. Shopify and TikTok are to offer product links that will enable the tagging of products in organic TikTok posts. TikTok users viewing the links will be able to shop on the merchants’ storefronts upon clicking the links.

“By enabling new in-app shopping experiences and product discovery on TikTok for the first time, Shopify is powering the creator economy on one of the fastest-growing social and entertainment platforms in the world,” said Shopify President Harley Finkelstein.

According to Shopify, the TikTok Shopping pilot will launch first in the U.S. and the U.K. Some merchants in Canada will be part of the pilot program in a few weeks, with plans to launch the new feature in more regions in the coming months.

Last month, Wedbush analyst Ygal Arounian reiterated a Buy rating on the stock and raised the price target to $1,800 from $1,650, implying 17.0% upside potential to current levels. According to the analyst, Shopify is positively exposed to the re-opening of physical retail as management expects gross merchandise volumes to continue increasing.

Consensus among analysts is a Moderate Buy based on 16 Buys and 10 Holds. The average Shopify price target of $1,734.74 implies 12.75% upside potential to current levels.

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