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e-Commerce

TikTok Shop’s Growth Spurt: Viral Moments Mask Long-Term Challenges

Nicole Kristine Jovero
Last updated: August 5, 2024 1:23 am
Nicole Kristine Jovero
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2 Min Read
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  • TikTok Shop shows growth amid user resistance.
  • Viral sales spikes mask long-term challenges.
  • Platform’s e-commerce future remains uncertain in competitive landscape.

Contents
Shopping frenzy or fleeting trend?Viral victories and structural stumbling blocks

Shopping frenzy or fleeting trend?

TikTok is doubling down on its e-commerce ambitions, dedicating one-third of its US job openings to Shop-related roles.

The platform’s aggressive push into shopping, however, has left some users yearning for the app’s dance-and-comedy roots.

Despite user grumbles, Shop is showing promising signs of growth, but its long-term success remains uncertain.

Recent data paints a mixed picture. US shoppers are spending more on TikTok, averaging $67 per purchase in mid-summer, up from $54 in January.

The platform boasts impressive user retention, second only to Amazon among major e-commerce players.

However, global order volume grew a modest 35% between January and June, lagging behind competitors like Shein.

Viral victories and structural stumbling blocks

TikTok Shop’s reliance on viral content poses challenges for brands seeking predictable revenue.

While some sellers have struck gold through viral videos, sustaining success proves difficult in an increasingly saturated market.

Live shopping emerges as a bright spot, driving significant sales for some creators.

Yet, TikTok must overcome structural hurdles, including user behavior that often leads to off-platform purchases and concerns about the app’s uncertain future in the US.

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