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LTK wants a bigger piece of the social commerce pie

The news: Influencer shopping platform LTK is adding native checkout to make it easier for users to shop, per a company release.

How it works: As with social platforms, LTK doesn’t hold any inventory itself. Instead, while shoppers can complete their orders without leaving the app, the brand or retailer is responsible for fulfilling the order.

  • Influencers make commission on sales based on existing agreements with their retail partners.
  • LTK makes money via transaction fees associated with sales made throughout the platform.

Swimming against the tide: LTK’s decision to go deeper into social commerce comes as Meta and TikTok pull back on some of their shopping initiatives.

  • Instagram is testing the removal of its “Shop” tab as it moves away from in-app shopping and refocuses on its advertising business.
  • TikTok and Facebook have pressed pause on livestream shopping amid tepid consumer response.
  • But LTK co-founder and president Amber Venz Box told Bloomberg that in addition to being a feature users have asked for, in-app shopping makes it easier for content creators to measure attribution and demonstrate their value to brands.

Looking ahead: While social platforms’ commerce efforts have led to mixed results, it’s still a huge revenue opportunity: We expect US social commerce sales to grow 34.4% this year, to $53.1 billion. That growth will come not just from an influx of new shoppers, but also from existing shoppers spending more.

Go further: Check out our latest Social Commerce Forecast.