US spending on TikTok shop surges as ban threat looms, Data Shows

TikTok Shop is making waves this holiday season. The e-commerce platform, launched in the U.S. in September 2023, has quickly gained attention. By combining its popular social media app with shopping, TikTok offers a unique experience. Shoppers get personalized recommendations and fast delivery.

On Black Friday, TikTok Shop reported sales of $100 million, highlighting its growing success. While this claim hasn’t been independently verified, the platform’s popularity is evident. Many brands, like e.l.f. Cosmetics and Ninja Kitchen, use TikTok Shop to reach more customers.

TikTok Shop also makes use of live video shopping through a feature called "LIVE." Influencers host streams where viewers can buy products instantly. The platform says live sessions have nearly tripled over the past year. This interactive shopping approach has attracted many users.

Shoppers like Jasmine Whaley, 31, of Pennsylvania, say TikTok Shop is their go-to for deals. Jasmine has spent nearly $700 this year on clothes, skincare products, and Crocs. She says TikTok’s recommendations feel spot on, and deliveries are often faster than Amazon.

For merchants, TikTok Shop offers a low-cost way to sell directly to 170 million U.S. TikTok users. Vendors sometimes ship items from China, similar to competitors Shein and Temu. All three platforms compete fiercely on price. TikTok is also encouraging more U.S. sellers to join by offering lower fees and faster shipping options.

During Cyber Monday week, TikTok Shop outperformed Shein and Temu in U.S. spending, according to Facteus. Their data comes from analyzing debit and credit card transactions. It shows that TikTok Shop is gaining ground in the e-commerce world.

However, TikTok Shop’s future in the U.S. is uncertain. A federal appeals court has upheld a law requiring ByteDance, TikTok’s Chinese parent company, to sell its U.S. operations. If ByteDance does not comply by early next year, TikTok and TikTok Shop could face a ban.

Experts like Erik Huberman, CEO of Hawke Media, believe this would be a huge loss for brands using TikTok Shop. “There isn’t an alternative,” he said, adding that it has become an important revenue stream for many businesses.

For now, TikTok Shop remains a big player this holiday season, proving that it’s more than just a social media platform. Whether it’s through influencer-driven live videos or bargain-priced deals, it has created a shopping experience that’s hard to beat.