Shopify Stock Gains On TikTok Partnership

ByteDance Ltd's TikTok announced its e-commerce foray under an expanded partnership with Shopify Inc SHOP. The collaboration dates back to October 2020.
TikTok's move pits it against Facebook Inc's FB and Twitter Inc TWTR, which already have an e-commerce presence.
TikTok also disclosed pilot testing TikTok Shopping among a select group of Shopify merchants in the U.S., U.K., and Canada.
Soon, Shopify merchants with a TikTok For Business account can add a new "Shopping" tab to their TikTok profiles and sync their product catalogs to create mini-storefronts on their profile TechCrunch reported.
However, in TikTok Shopping, the checkout occurs through Shopify, which powers the transaction and payment. In contrast, Instagram Shop scores with a checkout within the app via Facebook Pay.
Additionally, Instagram is preparing to launch ads globally on the Instagram Shop tab as per a TechCrunch report.
Recently Amazon.com Inc AMZN beat Facebook and Alphabet Inc's GOOG GOOGL ad growth rate from growing e-commerce shift due to the pandemic.
Facebook previously added shopping in Reels to compete with TikTok, organized exclusive product Drops into their Shop category, and added affiliate features for creators to earn a commission.
Price Action: SHOP shares traded higher by 3.92% at $1,539.53 on the last check Tuesday.