Flip - Should You Be On It?

Flip is a social commerce app that has been attempting to add the missing element of consumer trust into reviews. The feed is similar to TikTok and has become increasingly interesting to brands, especially those in the beauty, home and living, and fashion categories.

After downloading the app months ago, I quickly realized that this platform has the potential to be incredible. The team at Flip has been very smart in their attempt to draw users by paying consumers for their content and allowing brands to sell (exclusively with no resellers allowed) on the platform.

I have two major concerns about this platform: creators will oversell as a means to generate conversions and users will not want to download another app to simply see reviews when TikTok and YouTube already enable search for honest reviews.

After further digging, I learned that creators are paid more for engagement than conversions, which is an attempt to incentivize truthful reviews. However, I don’t see creators seeking to post negative videos on this platform when positive reviews can lead to higher pay from both conversion and engagement. A Retail Touchpoints article I read shared that 70% of payout comes from engagement and 30% comes from conversion.

As for downloads, I fear that, similarly to Lemon8, content creators and aspiring influencers will flood the app without actual use from potential buyers. App fatigue is real and it takes a lot to get consumers to be willing to switch over.

My thoughts? The platform has potential, especially since video reviews and UGC content are on the rise. Great brands have already joined, including Goop and e.l.f. Cosmetics. But I think the best route for Flip would be facilitating these reviews on website and finding a way to ease the display of consumer reviews on platforms like TikTok and YouTube onto marketplaces and DTCs.

Content creators: join if you want free things and are interested in trying social commerce.

Brands: join if you’re already a mid-size or larger beauty, fashion, or home and living brand seeking to connect with more creators to get UGC testimonials. Other brands may want to watch, but I’d wait before investing in this space unless you have a lot of innovation dollars.

News 📰

TikTok Shop 📱

• TikTok Shop is exploring selling groceries and digital products all within the app

• TikTok Shop was recently banned in Indonesia due to a policy prohibiting social commerce, but the Indonesian Minister of Communication and Information said he welcomes the idea of the platform existing on its own e-commerce-only platform

Twitch 👾

• Nintendo is getting rid of the Twitch App as of January 31, 2024

• Nokia is suing Amazon Prime Video and Twitch streaming services due to allegedly violating patents relating to streaming video compression, delivery, and other tech

• Stream Hatchet released their Q3 esports report sharing that Twitch attracted 53% of the esports audience

Amazon Live 🛒

• Amazon Music announced their first-ever Black Friday Amazon Music Live show with a headliner of Garth Brooks

• Amazon Live had an exclusive reveal of Heidi Klum’s iconic Halloween costume hours before her annual party in NYC

Meta 🌐

• Facebook Live views are dwindling, with a 39% decline in Q3, according to Stream Hatchet’s latest report

• States are suing Meta for allegedly designing features that harm young adults and teenagers

Pinterest📍

• Pinterest’s stock has been on the rise following their Q3 earnings report showcasing higher-than-expected growth in MAU, EBITDA, and EPS

Best in Class 🏆

Recently I stumbled across a small business called Elyse Breanne Design (EBD) that made 41k in a day and shared its journey on YouTube. EBD posts shoppable content on TikTok and has hundreds of sales on many products, including desk pads, agendas, post-it notes, and pens.

@elysebreannedesign

thing is…what if they have beef with the state they didnt order…if so i am sorry for sending it 🫣 #smallbusiness #stickers #smallbusinesso... See more

About Me

Hi, I’m Nicole! I’m a Gen Z social commerce entrepreneur and TikTok creator. I’m the Co-CEO of Ghost Agency, a social commerce company that supports brands and influencers with content and livestreams. Ghost Agency is one of the first TikTok Shop Partner agencies and we’ve been mentioned in The Information and Business Insider.

Thanks for reading my first newsletter. If you’d like to connect with me, you may do so via email or LinkedIn. Feel free to reach out if you have any requested topics, general inquiries, or Ghost Agency questions.

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