US Consumers Flock to TikTok Shop Amid Threat of Ban
U.S. TikTok users are actively shopping on TikTok Shop this holiday season, with sales reaching $100 million on Black Friday. The threat of a ban on TikTok in the U.S. could impact TikTok Shop's operations. TikTok Shop competes with rivals by offering products from third-party vendors and focusing on competitive pricing.
The spending trends suggest that TikTok Shop, which debuted in the U.S. in September 2023, is gaining traction in the e-commerce sector at a crucial time. Noteworthy brands like e.l.f. Cosmetics and Ninja Kitchen are among those featured on TikTok Shop.
During Black Friday, TikTok Shop announced sales of $100 million, with a significant surge in the number of monthly shoppers. However, Reuters could not independently verify these figures. The looming threat of a ban on TikTok in the U.S., upheld by a federal appeals court, could potentially extend to TikTok Shop.
Erik Huberman, CEO of Hawke Media, highlighted the success of brands on TikTok Shop, emphasising the lack of alternatives. The platform competes with rivals like Shein and Temu by offering products from third-party vendors, some shipping from China, and focusing on competitive pricing strategies. Lower fees are being offered to attract more U.S. sellers and enhance shipping efficiency.
Merchants on TikTok Shop leverage the app's popularity by using ads and influencers to promote products to its vast U.S. user base of 170 million. For consumers like Jasmine Whaley, TikTok Shop has become a go-to destination for fashion, skincare, and footwear, with Whaley spending close to US$700 on the platform this year. She appreciates the curated content and swift delivery compared to other platforms.
TikTok Shop's "LIVE" feature allows merchants and influencers to host live video streams for direct product purchases. Nico Le Bourgeois, head of U.S. Operations for TikTok Shop, noted a significant increase in the number of Live sessions monthly over the past year. Facteus data revealed that U.S. spending on TikTok Shop surpassed Shein and Temu in the week leading up to Cyber Monday, showcasing its growing popularity.
U.S. TikTok users are actively shopping on TikTok Shop this holiday season, with sales reaching $100 million on Black Friday.
The threat of a ban on TikTok in the U.S. could impact TikTok Shop's operations.
TikTok Shop competes with rivals by offering products from third-party vendors and focusing on competitive pricing.
Source: REUTERS