Despite being a late player of the game, Tiktok Shop has quickly accumulated buyers.
The American Tiktok Shop operation was launched in 2023, and has attracted 47 million buyers to the platform, who spend an average of $ 32 million every day, according to Capital One Shopping. The market based on social networks combines Temu prices with social purchases in the application, similar to Instagram and Facebook.
Added approximately 11.9 million American buyers only in 2024, placing it ahead of competitors such as Goal and Pinterest In the same period, according to Emarketer.
“All these companies should be really nervous because Tiktok Shop begins with this great customer retention strength,” said Jason Goldberg, director of Publicis Groupe’s trade strategy, a marketing firm.
Unlike other social purchase experiences, Tiktok Shop keeps buyers in their application. Others, like Instagram, take buyers to external websites to complete purchases.
In addition, Tiktok uses its algorithm to suggest products in the same way that it recommends content: shows ads of users based on their commitment habits, not just purchase habits.
“Every time you look at something, every time you stop at something, every time you click or slide something, that is to cut code at the bottom of this algorithm and making it smarter,” said Richard Crone, founder of Crone Consulting, an electronic commerce company.
Retail experts accumulate this shopping and entertainment marriage such as ‘store doors’. It is an electronic commerce category that has generated completely new careers for influential people in social networks such as Lexi Rosenstein.
“People do not realize that you can have 5,000 followers and monetize your content on Tiktok and Tiktok Shop and make this a race,” Rosenstein said.
As a Tiktok affiliate, Rosenstein has accumulated more than 70,000 followers and is the main American seller of beauty products in the application. She attributes her great followers to the growth of live purchases in Tiktok.
And yet, Tiktok Shop runs the risk of disappearing.
The Congress in April 2024 approved a law that demands that the byteo of China sell the American operations of Tiktok to an American company or in front of an effective prohibition of the application in the United States. Concerns are that Tiktok is a national security threat due to its ties with China, accusations that Tiktok denies. The application fell briefly for a few hours before the initial term of the law in January, but Tiktok received an extension of 75 days by President Donald Trump through an executive order. The Bytey has until April 5 to find an American buyer.
When writing this article, no buyer has been announced.
Watch the video above for more information about the emergence of Tiktok Shop, the companies that depend on it and what could mean an imminent prohibition for the application.
