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Short video platform TikTok’s parent ByteDance launched its online shopping service TikTok Shop in 2021 in Indonesia. The online retail platform is now available in major markets like the UK and the US. In an attempt to ramp up its shopping platform in the US, ByteDance is reportedly planning to ban links of other e-commerce platforms like Amazon.
According to a report by The Information, this move may help the company to force people to use TikTokShop.This wayTikTok users in the US who want to purchase an item that they have seen on the short video app will have to buy it from TikTok Shop.
TikTok Shop’s plans for the US market
The report cited sources that said: “TikTok Shop, the app’s nascent shopping service, is expected to lose more than $500 million in the US this year.”
TikTok is expected to invest heavily in hiring, building a delivery network and “subsidising merchants that offer double-digit–percentage discounts and free shipping.”
As per the report, consumers in the US are spending nearly $3-$4 million a day on TikTok Shop. By the end of 2023, the company expects the figure to exceed $10 million.
According to a report by The Information, this move may help the company to force people to use TikTokShop.This wayTikTok users in the US who want to purchase an item that they have seen on the short video app will have to buy it from TikTok Shop.
TikTok Shop’s plans for the US market
The report cited sources that said: “TikTok Shop, the app’s nascent shopping service, is expected to lose more than $500 million in the US this year.”
TikTok is expected to invest heavily in hiring, building a delivery network and “subsidising merchants that offer double-digit–percentage discounts and free shipping.”
As per the report, consumers in the US are spending nearly $3-$4 million a day on TikTok Shop. By the end of 2023, the company expects the figure to exceed $10 million.
New York city has recently banned TikTok on city-owned devices over security concerns. The city won’t allow employees to download or use the app or access the TikTok website from any city-owned devices.
On the other hand, a US federal judge stopped the ban on TikTok in the state of Montana a few days ago. The state demanded a ban on the Chinese short-video app TikTok starting January 1, 2024.
TikTok’s shopping platform has also turned into a major player in the Southeast Asia region. As the Chinese company’s shopping venture expands into new territories, e-commerce giant Sea is reportedly planning to increase investments in its online shopping business Shopee across all markets.
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