TikTok Ban? The Potential Impact on eCommerce

The TikTok Ban is now signed into law by President Biden, and now content creators, business owners, and everyone in the eCommerce industry are now asking, “What’s next?”

For now, nothing much, since the ban would not take effect immediately. ByteDance, the China-based company that owns TikTok, has promised to block the implementation of the statute in court. The government also has given the company the option to sell TikTok to a U.S.-based company, or it may be forced to sell it at the end of nine months.

Many small business owners who rely on the platform for their marketing and advertising are concerned about how the ban will affect their sales. However, given the legal battle that might happen in the Court of Appeals, it might take a few years before they see the total effect of the ban.

But those in the eCommerce industry should not be taking any chances. They still need to take some measures to prepare for the possibilities, which can mean they need to use TikTok advertising services as soo as possible.

The TikTok Bill, Explained

Despite being called the TikTok Ban Bill, the statute is formally known as the Protecting Americans From Foreign Adversary Controlled Applications Act. It allows for the President to call specific social media applications under the control of other countries seen as threats or risks to national security.

When an application is considered a security risk under the law, it cannot be sold in online app stores and web-hosting services until it cuts its ties to the foreign power or government that controls it within 180 days, or nine months.

The US government is very concerned that the private information of millions of TikTok users is compromised due to ByteDance being a China-based company. The government has claimed it has tried to regulate the social media platform, but has remained largely unsuccessful. But the claims against TikTok’s possible data risk is still unsubstantiated and relies largely on it being a company based in China.

Some have speculated that the bill has been largely driven by social media giant Meta, in an effort to become the most dominant social media platform once again in the US. This, and more could have led to the creation and the quick passage of the bill. TikTok has testified before the Senate that it had no links to the Chinese government and denied that they compromised the security of millions of users.

So what does this all mean? At the end of nine months, ByteDance can be forced to sell TikTok to another company, possibly to another social media platform, or a technology giant, or even to a billionaire mogul such as Elon Musk or Jeff Bezos.

Change in the Social Media Landscape?

If the law is implemented, it can change the social media landscape in many ways, and content creators, business owners, and all stakeholders have to devise new strategies to market and sell their products and services.

One possibility is that the eCommerce merchants and traders may have to resort to other social media platforms for their marketing and sales, such as YouTube, Instagram, and FaceBook. Suppliers in China may also have to find other platforms to advertise their products, as the geopolitical tensions could also result in other US-owned social media platforms being banned in China, which was similar to what happened to Google back in 2010.

This could make one company more influential than the rest, especially if ByteDance is forced to sell TikTok to another media giant. It can make the eCommerce industry more competitive, and could result in some small businesses losing out to larger companies that might have more clout in these other platforms.

Another factor that could affect what will happen in the next nine months is the result of the US elections. The bill has largely received bipartisan support from Democrats and Republicans, but it has also received a lot of pushback from many users of the online platform, who come from both sides of the political aisle too.

Most of them are content creators and small business owners who generate their income from their social media revenue stream, but also from the sale and promotion of their products and services on TikTok. Though Biden signed the bill into law, it was former President Donald Trump who proposed the idea while he was in office.

Other factors may come into consideration, too. But for those who might be affected by the bill, what they might ask from the next administration is more clarity and less frustration. This is especially true when it comes to how they can use platforms such as TikTok safely without risking their personal information.

Prepping for the Future

No matter what happens, sellers, merchants, business owners, and content creators have to find other platforms and strategies to prepare for what may possibly happen, even if it may take a couple of years. This means you can still use your TikTok for your advertising and promotions.

And since the legal battle can take at least a year, TikTok advertising services can still help you create content that can drive reach millions of views. You could also use the same method and content for these other social media platforms (in case you need to transition) to consider what options are suitable for you.

YouTube

YouTube is owned by Google and has millions of viewers, subscribers, and creators from all over the world. It is a video-sharing app, but it has more options than TikTok, especially for business owners. It offers a longer video format, and a short clip format, called “shorts”.

Many companies, both large and small, have a YouTube channel, and use it to promote their products and services. If you want to attract a younger demographic similar to your TikTok audience, use their video shorts to give the same kind of user experience.

To start, you can simply go to YouTube and create a channel. You need to create interesting content regularly to attract an audience. There are millions of users and channels on YouTube, so it’s best to use hashtags, keywords, and interesting images so your audience can find you.

Instagram

Instagram has a different approach in marketing and promotion than TikTok, and you need to adjust a bit so it can it your needs. More millennials use Instagram, and many of them are more focused on the imaging features of the app.

In this case, you have to create a strategy that uses photography and imagery to promote your products. Also, collaborations or partnerships with influencers can increase your views, shares, and followers on Instagram. This is very different from TikTok or YouTube, which relies largely on content you create.

You can create short feed videos, Instagram reels, Instagram stories, and live streams too, and it is very suitable for mobile phones and gadgets, which means it’s endless scrolling. And Instagram’s more varied content formats can be confusing at first, and they may not give you a roof return at first.

So it’s best to try which ones are suitable for your products and strategy, and then see which one will work best for you audience.

X (Formerly Known as Twitter)

Though X has seen a lot of ups and downs recently, it can still be a good way to engage with your audience. You can share images and clips, but X is largely known for short messages and posts, which could be good for announcements, sales, and partnerships.

X’s features can be used much better together with another social media platform, giving your audience different ways to engage and interact.

Social Media Will Keep Evolving

No matter what happens, the industry and its stakeholders will react to the politics and the economics of this bill in a way that will only encourage the eCommerce industry to become innovative and creative, no matter where they may be.

If you need some guidance and expertise on how to handle your social media platforms, visit 1Digital agency and we will help you create a social media strategy that will engage and entertain your audience, no matter what platform you are on.