ADWEEK Commerce Advantage: Ecommerce Agencies Are Buying Up TikTok Shop Specialists

More ecommerce-focused agencies are setting their sights on TikTok Shop. In July, performance agency Chief Media acquired Reach Social, an agency that specializes in TikTok Shop. Later that month, Podean bought the primarily TikTok Shop-focused Social Commerce Club. And in September, digital agency Power Digital acquired TikTok Shop agency uptickk. Financial terms of the recent acquisitions have not been disclosed. As TikTok Shop becomes a bigger sales channel for brands, ecommerce agencies are looking to acquire small, niche specialty agencies to help brands manage their presence on these platforms. Mastering TikTok Shop requires strong creator content as well as an understanding of ecommerce fundamentals, said Grace Yang, vp of social commerce at Pattern. In 2025, Yang sold her TikTok Shop agency, NextWave, to Pattern. “You need both the content engine, but you also need the marketplace expertise piece,” Yang said. Andreas Roell, CEO of M&A advisory firm Evros Group, said that the recent string of M&A shows how brands are asking for social commerce expertise from their performance- and digital-minded agencies. “There's a general specialization trend that has occurred in the M&A category that started with the retail component—now it has evolved further into social commerce,” he said. “There is no big social commerce shop out there at scale—it’s super early.” In the short term: Advertisers see TikTok’s halo effect on Amazon sales Ecommerce agency Podean has been on an acquisition tear this year, buying small firms to compete against larger agencies. Before acquiring Social Commerce Club, Podean had a 20-person social commerce division called LiveCraft. The division now has a staff of 120, Podean CEO Travis Johnson told ADWEEK. In addition to reaching TikTok's younger shoppers, Johnson said TikTok Shop is also driving ecommerce sales beyond the app. “The halo effect on Amazon and DTC is real,” Johnson said. “You will make some money on TikTok Shop, but the impact on other channels is substantial.” That sales aspect is fueling agencies’ M&A strategies, too. In addition to having relationships with creators that earn commissions based on the amount of product sold, social agencies need “to inform the catalog and pricing, manage logistics, the brand store, and analytics,” Johnson said. Ecommerce agency Envisions Horizons has taken TikTok Shop’s role in impacting Amazon sales a step further with technology that tracks incremental sales. “It is OK if the TikTok Shop channel is break-even because we are proving that TikTok is driving lift in more profitable channels,” said Laura Meyer, founder and CEO of Envision Horizons. Meyer added that TikTok is increasingly an important traffic source for brands that sell on Amazon. Within Amazon’s ecosystem, it’s getting harder for brands to drive awareness alongside sales, she said. “The Amazon funnel at this point is played out,” she said. “It is absolutely the Wild West in the TikTok ecosystem.” In the long term: Social commerce is still new to the U.S. While social commerce is well developed and used in areas like Asia, it's newer in the U.S. Despite recent M&A frothiness, some say it’s unclear if the TikTok Shop gold rush will last. Since launching in the U.S. in 2023, TikTok Shop has offered heavy promotional subsidies to grow market share, including free shipping and coupons. “It’s hard to know what’s real and if it will last forever,” said James Creech, founder of M&A advisory firm Quartermast Advisors. There are also challenges with TikTok Shop agencies' business models. TikTok Shop agencies can make money in three ways: A flat retainer fee for managing a brand’s presence on the platform, charging a commission fee for a cut of sales, and charging a commission fee for a cut of ad revenue. That business model could cause challenges for brands that don’t want to hire a standalone social commerce agency, said Evros Group’s Roell. “Yes, it is in demand, but is it enough for a brand to add another agency to their roster?” he said. Sources said that TikTok Shop agencies routinely change clients. “The churn of these smaller agencies is like nothing you’ve ever seen,” said Podean’s Johnson, adding that established TikTok Shop firms have at least 50 staffers. “Brands want profit on the first month—there are a lot of cowboys out there that are making it harder for the industry with their claims.”

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ADWEEK Commerce Advantage: Ecommerce Agencies Are Buying Up TikTok Shop Specialists

Marketers see a big opportunity to influence Amazon sales through TikTok

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Lauren Johnson

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