- TikTok aims to grow its TikTok Shop business in the US tenfold to $17.5 billion in sales this year.
- Charging lower seller fees than rivals, TikTok threatens companies focused on US eCommerce like Temu and Shein.
- TikTok’s move into social commerce illustrates its potential to disrupt globally across industries.
TikTok’s US Goal Growth
TikTok has set an ambitious goal to grow its TikTok Shop business in the US tenfold to $17.5 billion in gross merchandise volume this year, according to a recent Bloomberg report.
This target far surpasses the $20 billion in global sales TikTok Shop saw in 2022 and shows TikTok taking direct aim at rival eCommerce giants like Amazon.
Market Penetration
Leveraging its huge Gen Z user base, TikTok sold products from over 5 million new US merchants this past holiday. As it continues subsidizing seller fees and launches Shop in new regions like Latin America, TikTok eyes vastly increasing its share of social commerce.
It charges lower commissions than platforms like Amazon while letting creators directly showcase and sell products via viral videos.
Global impact and threat to rivals
Beyond competing with Amazon and Walmart, TikTok Shop threatens Chinese companies focused on US eCommerce like Temu and Shein. TikTok enjoys built-in distribution that others lack through its wildly popular short video feeds and discovery features.
TikTok’s move into social commerce illustrates its potential to disrupt multiple industries. Its Shop commissions will rise this year but remain comparatively low for merchants.
Expect TikTok’s algorithmic product recommendations and creator collaborations to play a big role in driving sales.
