Douyin, a domestic version of ByteDance’s TikTok for China, has reportedly started testing for its new auction feature in its e-commerce business. Only merchants with legal auction credentials can perform this role.
For the uninitiated, ByteDance, a China-based multinational internet technology company, owns Douyin.
According to reliable reports, merchants will be able to auction off non-standard items like jewelry, jade, beverages, and second-hand luxury products using the new function.
Merchants can start utilizing the feature through their Douyin stores' auction entry, where they can customize the activity name, length, deposit, wait period, commission ratio, and activity description, while consumers must make deposits before participating in the auction.
On April 8th, 2021, Kang Zeyu, head of Douyin's e-commerce business, proposed the concept of "interest e-commerce," which entails assisting customers in actively discovering prospective interests and assisting merchants in recommending items to target consumers.
Alibaba currently holds the #1 place in the country's online auction industry. Sun Jungong, Vice President of Alibaba Group, had estimated in 2015 that auctions would account for 30% of China's e-commerce sector in the next five years.
Jungong had predicted that on online auction platforms, 100 million people would watch the online auctions, and more than 1 million auctions can be held at once, with online auction-related services providing employment to over 10 million.
While this forecast has not come true so far, online auctions still have a lot of potential. Alibaba stated that the volume of transactions of Alibaba Auction in 2018 surpassed 500 billion yuan, more than double that of 2017.
ByteDance has been growing new streams of revenue in recent years, in addition to the advertising that is published on its popular applications like Douyin and Toutiao. It has also been a significant investor in smaller businesses.
ByteDance also recently launched its latest campus recruitment drive for 2022, with more than 8,000 job openings for college students. The new hiring drive is the most extensive in the company’s history. At present, the employee headcount at ByteDance exceeds 110,000.