How TikTok is redefining commerce for Kenyans

Over the past few years, TikTok has grown rapidly from a platform for sharing short, entertaining videos that many Kenyans enjoyed during Covid-19 lockdowns to a powerful global tool for entrepreneurship and large-scale commerce.

Here in Kenya, the rise of TikTok live sales has revolutionised the way individuals and small businesses reach their customers in ways that are very different from traditional social media and its maximum penetration and reach.

The new wave of digital commerce driven by social media has been a lifeline for many, particularly in the recovery from the pandemic that severely disrupted traditional retail models.

The rise of live sales on TikTok emerged when Covid-19 caused many businesses to close their physical stores, forcing them to explore online platforms to survive.

While traditional branded retail e-commerce websites and collective sales platforms, as well as social media platforms such as Instagram, YouTube, Twitter, and Facebook were already popular for selling products, TikTok introduced a unique opportunity through its live streaming feature that was more engaging than its then-equivalent YouTube, Facebook, or Instagram live features.

TikTok’s live selling allowed users to showcase their products in real-time, interact with potential buyers during live streams, and complete transactions instantly during live sessions as well.

This dynamic and interactive form of selling has become very popular and increasingly prolific in Kenya, where entrepreneurship thrives and demand for innovative business solutions remains high.

What makes TikTok live sales particularly attractive?

It’s a very accessible tool: anyone with a smartphone and a TikTok account can become a seller more easily than on other social media platforms.

There is no need for complex setup, significant capital investment, or linking traditional social media to various off-platform payment solutions. As long as the user has built up a following on the platform, they can start selling their products live.

This move has democratized commerce, allowing people from all walks of life to participate in the digital economy, empowering Kenyans to sell even beyond our borders.

The impact on small businesses and individual entrepreneurs continues to grow exponentially as TikTok live selling opens up new avenues for growth.

Traditional barriers to entry, such as high brick-and-mortar store rental costs that include not only shop setup but also rental deposits and goodwill payments, as well as limited marketing budgets to reach a wide audience, are no longer obstacles as long as the content posted is engaging and fits what viewers like to watch and is therefore picked up by TikTok’s powerful algorithm to be placed on viewers’ “For You” pages.

In this way, both large and small sellers can reach a wide audience without the need for expensive advertising campaigns.

Additionally, the interactive nature of live selling allows salespeople to interact directly with customers, answer their questions, and demonstrate their products, which can significantly increase the chances of making a sale without the need for a robust customer service staff.

In Kenya, where our informal sector plays a vital role in the economy, live selling via TikTok has been an even bigger game changer.

Many juakali vendors who previously relied on word of mouth or small market stalls now have access to national, regional, and international customer bases for both physical products and services such as fitness, meal plans, basic accounting, fashion advice, life coaching, etc.

This has not only boosted their sales, but has also allowed them to establish brands and generate loyal customers.

The ability to receive instant feedback from customers and quickly adapt to their preferences in real-time is another advantage that has contributed to the success of live selling on TikTok.

While live sales on TikTok present numerous opportunities, they also come with challenges. One of the main issues revolves around the platform’s unpredictability.

TikTok works differently than other social media platforms, as its powerful algorithm drives traffic, which determines the visibility of entrepreneurs’ content, and it can be difficult to learn how to navigate.

Marketers may find that their live streams aren’t reaching as many viewers as they expected, which can impact sales. Additionally, building a large following on TikTok takes a lot of time and a lot of thought and effort to be creative and engaging.

To mitigate the challenges, creating unique and thoughtful content, engaging with followers, and consistency are key to growing an audience, but these can be demanding for people who may already be juggling multiple time responsibilities.

Another challenge is the lack of formal structures for conducting business on TikTok. Unlike established e-commerce platforms that offer built-in payment systems and buyer protection, transactions on TikTok are often conducted informally.

This can lead to issues such as disputes over product quality, delivery times, and sometimes payment methods. Sellers must navigate these challenges while maintaining trust and credibility with their customers.

Despite these challenges, the future of live sales via TikTok in Kenya looks promising. As more Kenyans gain access to smartphones and the internet, the potential for digital commerce continues to grow even in our most remote areas.

The platform is expected to evolve, with features that better support sellers and streamline the purchasing process.

Furthermore, as the Kenyan government continues to promote digital transformation, there may be opportunities for regulation and support that could improve the security and reliability of online transactions.

For now, however, TikTok live sales remain a vibrant and fast-growing segment of Kenya’s digital economy.

It represents a shift in the way businesses operate, moving away from traditional brick-and-mortar setups and established social media and e-commerce platforms toward more flexible and accessible online models.

For many of us Kenyans, especially young entrepreneurs, TikTok has become more than just an entertainment platform. It is now a true marketplace, a community, and a powerful tool for economic empowerment.

Peter Kariithi is Project Manager for Digitalisation, Research and Technology at USIU-Africa.

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