The reason for Tik Tok's fast horse is low channel cost and scale effect.

As an e-commerce platform, Tik Tok has the advantage of lower channel cost compared with traditional sales channels. Traditional sales channels need to go through dealers, retailers and other links, while e-commerce platforms such as Tik Tok directly connect producers and consumers, reducing intermediate links and logistics costs, so the cost of goods is lower. As a large-scale e-commerce platform, Tik Tok has a huge user base and transaction volume, and can get more goods at a lower price. Tik Tok's supply chain system is also very perfect, and it can purchase more goods at lower prices.