TikTok plans to rival Amazon by growing its US e-commerce business, TikTok Shop, tenfold to $17.5 billion this year.
Why we care TikTok Shop is a prime opportunity for brands, as 83% of users make purchase decisions on the platform. If TikTok is planning a major expansion, sellers will benefit from being able to showcase their products to a wider and more engaged audience in the States, maximizing ROI.
The details TikTok is gearing up to use its engaged user base and viral videos to boost merchandise sales on the US TikTok Store. Bloomberg. While the details of this strategy were recently discussed during internal meetings, it is important to note that these plans may change based on the company’s performance.
However, if all goes according to plan, TikTok will pose a challenge not only to Amazon, but also to online retail media brands like Temu and Shein.
why now TikTok was on track to generate roughly $20 billion in global gross merchandise value, though the platform has denied that figure, with most sales coming from Southeast Asia last year. The company is currently considering an expansion of its sales footprint in the US and Latin America. TikTok is preparing to launch its e-commerce operations in those regions in the coming months, according to two people familiar with the matter.
What is TikTok Shop? TikTok Shop allows users to make purchases while scrolling through a continuous stream of short videos and live streams within the main social media app. This feature allows both merchants and creators to showcase and sell products, creating a seamless in-app experience for the TikTok community to explore and purchase directly.
What TikTok says. TikTok did not immediately respond to Search Engine Land’s request for comment.
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deep dive Visit the TikTok Store Help Center for more information.
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