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ASCM Insights

TikTok Launches Into Warehousing and Logistics

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While scrolling through TikTok watching cute dogs get reprimanded for destroying throw pillows and learning how to build a box garden, what if you could instantly order that pillow or buy some vegetable seeds? As it turns out, the short-length video platform is expanding into e-commerce to create revenue opportunities just like these for its content creators.

TikTok is partnering with multinational e-commerce company Shopify to enable users to make purchases directly through the app. Shopify interfaces with TikTok For Business accounts to allow a seller to add a Shopping tab to their profile, which then syncs to their Shopify catalog. In support of these services, CNN reports that the company is preparing to offer logistical support to sellers in order to provide what it calls “a brand new and better e-commerce experience.” To achieve this goal, TikTok is hiring for 70 logistics-related jobs in cities across the globe, including Bangkok, London, Los Angeles, Madrid, Seattle, Singapore and Sao Paulo. 

The company has not yet made an official statement about expanding into U.S. e-commerce, instead saying it’s “focused on providing a valuable shopping experience in countries where TikTok Shop is currently offered,” including Indonesia and the United Kingdom. But the logistics and warehousing jobs on its careers page suggest otherwise.

In one job posting for a business solutions and merchant development manager in Seattle, the company is looking for someone to build its new fulfillment service from scratch by being “responsible for the business development of fulfillment service, delivering the business plan and carrying out the result.” Another posting for a logistics solutions manager seeks someone to plan and design fulfillment centers, including supply chain and logistics solutions.

Both job postings make this note about TikTok’s plans: “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."

What remains to be seen is if TikTok will follow another cool trend in the warehousing industry: making warehouses more exciting places to work. Companies including outdoor goods retailer REI and drug distributor McKesson Corp. are breaking the mold of utilitarian warehouse spaces to instead create beautiful and comfortable work environments. They are adding more natural light; automation, such as robotic pickers and automated storage and retrieval systems; fitness centers; and outdoor recreation areas. Employers hope these perks will entice workers in a tight job market.

Warehousing and logistics jobs are still booming

Following the surge in e-commerce demand at the start of the pandemic, the warehousing and logistics job market continues to grow. According to the U.S. Bureau of Labor Statistics, warehousing and storage companies added approximately 100,000 new jobs in the past year. Pay for workers in this industry also is rising, up from $18.65 an hour in August 2019 to $21.32 in August 2022 on average.

As we head into the holiday season, companies will need even more employees. Plus, if TikTok is correct that e-commerce growth "cannot be underestimated,” more jobs in the field are undoubtedly on the horizon. ASCM offers career resources including a job board, mentor program, salary report and calculator, and career tips. And explore the ASCM Supply Chain Warehousing Certificate, which provides learners with key insights into distribution inventory management, product storage, packaging and shipment, sustainability in logistics, and much more.

About the Author

Abe Eshkenazi, CSCP, CPA, CAE CEO, ASCM

Abe Eshkenazi is chief executive officer of the Association for Supply Chain Management (ASCM), the largest organization for supply chain and the global pacesetter of organizational transformation, talent development and supply chain innovation. During his tenure, ASCM has significantly expanded its services to corporations, individuals and communities. Its revenue has more than doubled, and the association successfully completed three mergers in response to both heightened industry awareness and the vast and ongoing global impact driven by supply chains. Previously, Eshkenazi was the managing director of the Operations Consulting Group of American Express Tax and Business Services. He may be contacted through ascm.org.