The Flip App Levels Up Its Social Commerce Game By Acquiring Curated

The emergence of social commerce has flipped traditional e-commerce and retail on its head. Where digital stores would use digital marketing to entice customers, social commerce brands now heavily rely on pulling in their customers through the social interactions they have on various platforms. 

We’ve seen the power of TikTok Shop first-hand, particularly in the US, where 500,000 merchants are now reportedly set up to sell via influencer-produced shoppable videos. TikTok Shop sales here are expected to reach $17.5bn by the end of 2024. We can’t quite comprehend that projection either!

But TikTok Shop has recently been given a run for its money, as the Flip app has emerged as it’s biggest competitor after acquiring social commerce company, Curated, for $330 million in stock. 

Though both the Flip app and Curated operate under different business models, and target different types of customers with different buying needs, they both agree that the personal touch in digital retail needs to be brought back to life. And that’s exactly what they plan to do, with the Flip app founder and CEO, Noor Agha, stating, “With the acquisition of Curated, we’re accelerating our strategy to reshape e-commerce by emphasising authentic human interaction and high-quality products”.

Both companies have experienced rapid traction so far and the new acquisition will help double last year’s combined revenues. With the Flip app leveraging user-generated videos to build authenticity and credibility, customers can become influencers. On the other hand, Curated offers expert consultations for personalised service, ensuring customers receive tailored, high-quality advice for their purchases. The combination of the two allows Flip to tap into the specialty market, increasing dominance over the social commerce realm and standing as a true TikTok Shop competitor.

How does the Flip app differ from TikTok Shop?

So far, the Flip app has been downloaded by more than 5 million users and features over 5,000 brands. Unlike TikTok Shop, it curates every brand it features, meaning over 70% of the sellers who apply to be featured on the platform are rejected. This reassures users that they are getting the real thing and not just being sold a bill of goods from just anyone.

The platform upholds strict standards about who can post and gives them free rein over what they wish to say. It also prohibits paid influencers from creating posts that promote a specific brand’s products, as well as limits brands from influencing product reviews. Only real customers can post reviews which are limited to one minute of screen time. Before being granted access to the site’s camera function, they must first be validated as buyer’s of the product through the site. Once validated, users may receive scaled rewards based on sales and views, which can be used as additional purchases on-site or transferred to a bank account. 

This adheres to the current consumer demand for honesty when it comes to product recommendations, due to there being such an overwhelming amount of everything, everywhere. This push for honest, authentic reviews is the driving force behind the ‘30-and-younger’ crowd quickly becoming Flip’s fastest-growing segment, as they inspire impulse purchases, which are most likely to be made by these people.

Why did Flip choose to acquire Curated?

Where the Flip app excels in retail therapy and instant gratification, Curated was designed to aid considered, high-investment purchases with the help of expert advice. To put it into perspective, the average order value on Curated is roughly $700.

Curated began its journey with a foothold in the outdoor sports category, with carefully-vetted experts in skiing, snowboarding, camping etc consulted with prospective buyers to uncover their needs and give authoritative purchase recommendations. Since then, it’s gone on to tap into home products, including cookware, knives, air purifiers, coffee machines etc. 

The integration of expert advice into the social shopping experience adheres to the consumer demand to talk to someone knowledgeable before making a big purchase. Curated founder, Eduardo Vivas shared, “We do this everyday in our personal lives, but we don’t have somebody for everything. We built a platform to connect these people with experts who can advise them objectively”.

What can the two platforms achieve together?

Though there seems to be little overlap between the Flip app and Curated customer bases from an age perspective, both platforms target customers with disposable income. More importantly, they share a commitment to the people-power within retail, something that e-commerce is hugely neglecting. 

Going forward, the platforms will continue to operate independently, but Vivas will step into Flip as its chief operating officer, with plans to bring experts onto the Flip app and customer videos to Curated, essentially creating a space where shoppers can find cool, new products and chat with an expert who’s passionate about that category before purchasing. “By combining our strengths, we are committed to ensuring an honest and genuine shopping experience, powered by individuals who are passionate about sharing what they love. Together we will continue to champion authentic recommendations and create a vibrant, community-driven marketplace”, Vivas concludes. 

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