Report: TikTok Set to Increase US TikTok Shop Revenue to $17.5B by 2024

TikTok is looking to grow the size of its TikTok Shop U.S. business tenfold to as much as $17.5 billion this year, according to a new report from Bloomberg. As Bloomberg previously reported, TikTok was on track to amass around $20 billion in global gross merchandise value last year. In addition, the report says the company is planning to launch TikTok Shop in Latin America in the coming months. The report indicates that during the Black Friday and Cyber Monday season in November, more than 5 million new U.S. customers purchased something via TikTok Shop. TikTok Shop has also started to reduce some subsidies for merchants.

TikTok has set its sights on expanding its U.S. TikTok Shop business, with reports indicating a goal of up to $17.5 billion in merchandise volume this year – a significant tenfold increase. This ambitious target was privately discussed within the company and may be adjusted as the year unfolds.

“With this goal, TikTok is not only taking on established e-commerce giant Amazon, but also fellow Chinese-owned companies like Temu and Shein, which have gained popularity in the U.S. market,”

– Bloomberg

What sets TikTok apart from its competitors is its immensely popular social media platform, which has the potential to utilize viral videos to reach potential buyers and boost sales.

According to past reports from Bloomberg, in 2020 TikTok generated a global gross merchandise value of around $20 billion, with a majority of sales coming from Southeast Asia. Now, the company aims to replicate this success in the U.S. and is eyeing a potential launch in Latin America in the near future.

TechCrunch reached out to TikTok for comment on these reports, but received no response.

The latest report reveals that during the Black Friday and Cyber Monday shopping season last year, TikTok Shop saw over 5 million new customers in the U.S. making purchases. This is a significant number considering the app currently has around 150 million users in the country.

“TikTok’s e-commerce platform offers creators the ability to tag products in their videos, providing a seamless shopping experience for users. Brands can also curate their own product portfolios on their profile pages. Additionally, TikTok Shop has a designated tab for users to search, discover, and manage their purchases.”

– Bloomberg

Interestingly, another report from The Information revealed that TikTok is planning to increase its commission fees from the current 2% to 8% per transaction. The company has also started reducing subsidies for merchants. However, these fees are still significantly lower compared to Amazon’s average seller fees of 15% for most product categories.

TikTok Shop officially launched in the U.S. in September 2023 and has been steadily gaining popularity among users and brands alike. Its seamless integration of e-commerce with its already massive social media platform is a unique approach that is poised to compete with established players in the market.

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Zara Khan

Zara Khan is a seasoned investigative journalist with a focus on social justice issues. She has won numerous awards for her groundbreaking reporting and has a reputation for fearlessly exposing wrongdoing.

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