TikTok, the social media giant known for its short-form videos, is reportedly eyeing a massive expansion in its US e-commerce operations. According to a Bloomberg report, the company is aiming to hit an impressive USD 17.5 billion in e-commerce sales by 2024. This ambitious target would represent a tenfold increase from its current scale.
Recent internal discussions have shed light on TikTok’s plans to ramp up its US TikTok Shop, a platform blending entertainment with shopping. Sources privy to these meetings indicated that this target could be subject to change based on the platform’s performance.
This move by TikTok not only sets it up as a direct competitor to e-commerce behemoth Amazon but also brings it into the arena with other popular Chinese-owned discount brands like Temu and Shein, which have been making waves among young American consumers. TikTok’s strategy diverges from its competitors by leveraging its vast social media influence and the power of viral content to draw in buyers.
The report also highlighted that in 2023, TikTok’s global merchandise value was expected to reach around USD 20 billion, with the bulk of sales originating from Southeast Asia.
With sights set on the American and Latin American markets, TikTok plans to kick off its e-commerce operations in these regions in the near future, as noted by sources familiar with the copany’s strategy.
The TikTok Shop feature integrates shopping directly into the app’s core experience of short videos and live streams, offering a unique shopping platform that could challenge Amazon’s dominance. ByteDance, TikTok’s parent company, is clearly focused on taking its e-commerce business global.
In the US, TikTok is enhancing its appeal by offering free shipping and influencer subsidies to promote a variety of products, from tech gadgets to fashion and cosmetics. The platform’s promotional efforts, particularly around Black Friday and Cyber Monday, have already paid off, with over five million new US customers making purchases on TikTok in November 2023.
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