Manhattan Associates CEO Eric Clark reveals why TikTok Shop’s blend of entertainment and commerce removes almost every barrier to conversion for Australian retailers.
For retailers, this marks a new kind of retail landscape where algorithms, not advertising schedules, determine demand peaks and where the agility, flexibility and speed to consumers of a retailer’s supply chain become mission critical”
Eric Clark, President and CEO of Manhattan Associates
What’s happening: TikTok Shop is entering Australia, bringing social commerce to over 8.5 million active users who spend nearly an hour daily on the platform. Eric Clark, President and CEO of Manhattan Associates, explains why this launch represents a fundamental shift in retail, where algorithms drive demand and why supply chain agility becomes mission-critical.
Why this matters: Unlike traditional marketplaces built on consumer intent, TikTok Shop blends entertainment with purchasing, creating unpredictable demand spikes through thousands of affiliate creators.
Dynamic Business speaks exclusively with Eric Clark about TikTok Shop’s Australian arrival and what it means for retail supply chains.
Over 8.5 million Australians are already using TikTok, and the platform moving into e-commerce is one of the biggest shifts in retail in years. But behind the excitement of reaching highly engaged consumers lies a more complex reality that could put traditional retail systems to the test.
Eric Clark, President and CEO of Manhattan Associates, has seen TikTok Shop grow quickly in markets like the US and UK. As it prepares to launch in Australia, he shares why this is not just another marketplace and what local retailers need to do to succeed.
Discovery meets demand
TikTok Shop is changing the way people shop online and it works very differently from platforms like Amazon or Temu. Eric Clark explains why. “Platforms like Amazon or Temu are built on intent, with consumers going onto these platforms having an idea of what they want and using these marketplaces to compare options and complete a transaction,” he says. “TikTok Shop differs in that it blends entertainment and commerce in the same space. Its algorithm identifies the content most likely to engage each user and places purchase opportunities directly within that experience. This seamless mix between discovery, persuasion and purchase removes almost every barrier to conversion.”
The numbers show just how powerful this is. More than 8.5 million Australians spend close to an hour a day on TikTok, and globally, 40 per cent of users say they have bought something after seeing it on the platform. “For retailers, this marks a new kind of retail landscape where algorithms, not advertising schedules, determine demand peaks and where the agility, flexibility and speed to consumers of a retailer’s supply chain become mission critical,” Clark says.
The affiliate disruption
From a supply chain perspective, this sales model brings new challenges. Retailers can no longer rely on forecasts built on history or seasonality. They must be agile and able to recognise and respond to spikes as they happen
TikTok Shop presents a new selling environment for brands and retailers through its affiliate-driven model. Unlike traditional campaigns with predictable timelines and controlled rollouts, TikTok Shop depends on thousands of independent creators who can promote products at any time. “Instead of a brand managing a few planned campaigns, or known holidays, thousands of independent creators can promote products at any time, earning a commission when their videos lead to sales and creating powerful but unpredictable bursts of demand,” Clark says.
This new way of generating demand means retailers have to rethink their supply chain strategy. “From a supply chain perspective, this sales model brings new challenges. Retailers can no longer rely on forecasts built on history or seasonality. They must be agile and able to recognise and respond to spikes as they happen. That means having end-to-end visibility from warehouses to store shelves and the ability to move inventory dynamically,” he explains.
Clark points to the solution: unified systems that give real-time visibility across all inventory. “Advanced inventory visibility and order management systems are essential as they give retailers a single view of inventory across the entire inventory estate. This allows them to fulfil from the best possible point in their network, whether that’s a local store, a distribution centre or a partner facility,” he says.
Visibility as competitive advantage
Overseas experiences show just how fast social commerce can move, and the lessons can be eye-opening. Clark shares a striking example from the UK that shows both the opportunity and the risk. “In one case in the UK, retailer Lidl released a Dubai-style chocolate, which went viral on TikTok Shop through creator content, leading to the entire stock of product selling out online in just 84 minutes,” he recalls. “That’s a reminder that virality, while exciting, can quickly become a problem for retailers if their supply chain operations are not agile, flexible and scalable enough to meet demand surges.”
For Australian retailers getting ready for TikTok Shop, Clark says data accuracy and speed are critical. “For Australian retailers, the biggest lesson is the importance of visibility and flexibility. When a product suddenly takes off online, you can only move at the speed of your data. If stock information isn’t accurate or unified across every element of your supply chain and every sales channel, teams are essentially flying blind and can’t move inventory, update availability, or keep customers informed,” he says.
Being able to respond quickly becomes a real competitive advantage. “That’s why having a single, unified view of inventory across stores and online channels is so powerful. It allows retailers to move products to where the demand is, whether that’s fulfilling from a local store or shipping from a nearby distribution centre,” Clark explains. But visibility alone is not enough. Preparation matters just as much. “The other crucial piece of the puzzle is preparation. Viral moments can happen overnight and the brands that benefit are the ones that have already mapped out ‘what if’ scenarios and built the systems and processes to respond in real time,” he advises.
When fulfilment becomes marketing
TikTok Shop is a huge opportunity for brands that can make that connection between inspiration and satisfaction. But to pull it off, you need technology that gives you real-time visibility and accuracy across the entire supply chain.
A lot of retailers think of TikTok Shop as just another marketing channel, but Clark says the real key to success is fulfilment. On TikTok Shop, every purchase is public and every experience is shareable. “Fulfilment sits at the centre of the social commerce experience. When a customer buys a product, unboxes it on camera or leaves a review, that feedback goes straight back into the platform that drove the sale. If a retailer can’t deliver quickly or accurately, that disappointment shows up just as fast as the initial excitement to both creators and potential customers,” he says.
The stakes go beyond individual orders. It is about brand reputation as well. “Fulfilment failures can hurt a brand’s reputation in hours. But the opposite is true as well. Reliable delivery, accurate order tracking and clear communication build trust between the brand, the creator and the consumer,” Clark explains. That is why operational excellence has to match marketing momentum. “TikTok Shop is a huge opportunity for brands that can make that connection between inspiration and satisfaction. But to pull it off, you need technology that gives you real-time visibility and accuracy across the entire supply chain. You need to make sure every order is sourced, picked, packed and shipped from the best location,” he says.
Manhattan Associates takes a platform-first approach to this problem. Clark explains how it works. “We provide out-of-the-box integration for real-time inventory, order synchronisation and payment flows. It gives retailers the same one-click simplicity that consumers expect, letting them get onto emerging channels like TikTok Shop quickly, without long waits for custom builds or data reconciliation.”
The creator economy imperative
The relationship between brands and creators represents another critical dimension of TikTok Shop success. Clark emphasises that creators should be viewed as serious commercial partners whose own success depends on brand reliability. “In an age of social commerce, brands need to recognise that creators are now serious commercial partners. Their credibility and income depend on whether the products they promote are available and delivered as promised. If a brand’s stock runs out quickly or deliveries are unreliable, creators will shift their attention elsewhere,” he says.
This creates a direct connection between inventory visibility and creator engagement. “Without accurate real-time visibility of inventory, brands risk losing both sales and creator trust. Affiliates want reliability and to be confident that any product they promote is in stock and can be quickly shipped to satisfy their audience. A platform-based, unified approach to supply chain and commerce processes make that possible by synchronising data across stores, warehouses and online channels. When brands can consistently guarantee availability and speed, creators are far more likely to invest time and effort promoting their products,” Clark explains.
The cost of operational failure
The transparency of social commerce means operational failures are seen and felt immediately. Clark is blunt about the risks if retailers’ systems cannot keep up with demand. “The immediate risk is lost sales, but the bigger issue is loss of trust. Social commerce is built on authenticity and speed. If a brand fails to deliver on its promises, whether because of delays, stockouts or poor communication, that experience is quickly shared and amplified,” he warns. In this environment, operational excellence is tied directly to brand perception. “In that sense, fulfilment failures are marketing failures. Because social commerce is so transparent, there is little opportunity to recover quietly and brands still working with disconnected inventory systems or manual processes will struggle to keep pace,” Clark says.
The answer is systems that can flex and scale on the fly. “Retailers must ensure their supply chains and retail processes can flex and scale to meet sudden shifts in demand. That means being able to reroute orders, draw stock from alternate locations and keep data flowing seamlessly between commerce, supply chain and customer service operations,” he explains.
AI-powered resilience
Manhattan’s response to these challenges incorporates artificial intelligence at the core of its platform. Clark describes how agentic AI changes the speed and accuracy of customer service in social commerce environments. “Manhattan Active Omni has Agentic AI built into it at its core. This means no data lakes, no latency issues and critically no security hurdles, enabling AI agents to act like digital co-workers for brands, analysing context, taking action and making decisions in real time,” he says.
The practical applications are particularly relevant for the post-purchase experience that plays out publicly on platforms like TikTok. “If a customer needs to change an address, request an exchange or initiate a return, AI agents can handle that instantly and accurately. In the context of social commerce, where the post-purchase experience is very much on display for the whole platform to see, this level of intelligence, accuracy and responsiveness is critical,” Clark explains.
The future of retail infrastructure
Looking beyond TikTok Shop, Clark sees social commerce driving major changes in how retailers design their supply chains. “Social commerce is driving a much closer connection between marketing, sales and supply chain operations. Retailers are starting to design networks that are not only efficient but also responsive and capable of rapidly adapting to changes in consumer behaviour,” he says.
The next generation of supply chains will focus on speed and proximity as much as efficiency. “Supply chains will be defined by real-time orchestration, data transparency and proximity to the customer. Inventory will increasingly sit closer to demand, often in smaller local fulfilment or in-store hubs, to support same-day delivery expectations, while Artificial Intelligence will help predict and respond to demand spikes and automate fulfilment decisions at pace,” Clark explains.
Ultimately, he sees social commerce as a test that will separate leaders from laggards in retail. “In many ways, social commerce turns every viral moment into a test of supply chain performance. It challenges retailers to match the speed of digital engagement with the speed of physical delivery. Those who invest in unified, intelligent and agile supply chains will not only succeed on platforms like TikTok Shop but also build long-term resilience in a shopping environment where commerce and content are now closer than ever,” he concludes.
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