Explosive Expansion! TikTok Shop Threatens Amazon’s E-commerce Dominance with $17.5 Billion Growth Strategy
Update: As a potential competitor to Amazon, TikTok is reportedly looking to amp up its ecommerce division, TikTok Shop, in the U.S. to an impressive $17.5 billion in 2022.
Please note that these plans might shift based on performance measures, no confirmation yet from TikTok on the implementation of this strategy. For the record, TikTok presents a significant advantage for brands, with about 83% of its users making purchasing choices via the platform. A bigger TikTok user base means marketers can expose their products to a larger engaged audience, resulting in higher returns on investments.
Speculated plans reveal an intent to leverage TikTok’s engaged users and viral content to skyrocket merchandise sales on the U.S. version of TikTok Shop, according to a Bloomberg report. Should these plans materialize, TikTok could potentially rival not just Amazon but other online retailer giants like Shein and Temu.
Why the surge now? Informants indicate that TikTok has generated estimated global gross merchandise value close to $20 billion, though the majority of sales was from Southeast Asia in the past year. The figure is, however, being denied by the platform. Now, the company is contemplating an expansion to broaden its sales reach in Latin America and the U.S.
How does TikTok Shop add value? TikTok Shop enriches the shopping experience by allowing purchases to be made while browsing an endless array of short videos and live streams on the main app. Merchants and creators can display their products for sale, creating a smooth in-app experience for the TikTok community.
For comprehensive information about TikTok Shop, visit the TikTok Shop Help Center.
Ready to boost your local business? Visit us here for more information.