this post was submitted on 25 Apr 2024
523 points (98.5% liked)
Technology
59341 readers
5221 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
5% of customers driving 25% of revenue is a market you want to invest in.
Amazon wasn't profitable for how many years? It's the exact same play. Take a loss to create something artificially desirable, strangle the competition and lock up your walled garden, then crank the prices.
I've talked with merchants TikTok Shop recruited, TikTok was paying them a ton to sell there, eating their processing fees, their shipping costs, and paying for massive discounts to customers so they could juice their metrics.
They're starting to crank up their fees this spring and summer.
Same with advertising, advertisers want to go to TikTok, but I'm sure most of the actual spend is happening outside the app on influencers. TikTok wants that pie too.
Taking a loss means nothing in this context