Bloomberg reports that TikTok wants to triple its U.S. TikTok Shop business to $17.5 billion this year. The article says the business recently addressed its 2024 merchandise volume objective, which may change during the year.
TikTok would like to compete with Amazon, Temu, and Shein, which are popular in the U.S. TikTok, unlike the other two, has a huge social media following that might use viral videos to reach shoppers.
Bloomberg stated that TikTok was on track to reach $20 billion in worldwide gross merchandise value last year. Most sales were in Southeast Asia. TikTok wants that success in the U.S. Additionally, TikTok Shop will open in Latin America in the coming months, according to the source.
“The speculated US merchandise sales figures represented by Bloomberg are inaccurate,” TikTok claimed.
Over 5 million new U.S. TikTok Shop consumers bought something on Black Friday and Cyber Monday in November, according to the research. About 150 million Americans use the social networking app.
A day earlier, The Information claimed that TikTok would raise its commission on most goods from 2% to 8% for every transaction. Merchant subsidies have also decreased on TikTok Shop. These commissions are far lower than Amazon seller fees, which average 15% for most product categories.
The U.S. debut of TikTok Shop in September 2023 enables artists to tag things for users to buy from in-feed and live videos. Brands’ profile pages can display their product portfolios. Users may search for things, browse categories, discover products through recommendations, and handle orders on TikTok Shop’s dedicated tab.
