BY COMFORT OGBONNA
U.S. TikTok users have spent significantly on merchandise from various vendors through the e-commerce platform TikTok Shop this holiday shopping season, according to TikTok’s estimates and a Reuters analysis of spending patterns based on data from Facteus.
The data indicates that TikTok Shop, which launched in the U.S. in September 2023, has likely captured market share in the e-commerce sector at a pivotal time. The platform serves as a sales channel for major brands such as e.l.f. Cosmetics and Ninja Kitchen, among others.
In a late November press release, TikTok Shop announced that its sales reached $100 million on Black Friday, the day after Thanksgiving when U.S. consumers traditionally spend heavily online. The company also stated that the number of monthly shoppers has nearly tripled. However, Reuters was unable to independently verify these claims.
On Friday, a U.S. federal appeals court upheld a law requiring TikTok’s Chinese parent company, ByteDance, to divest the app in the U.S. by early next year or face a ban. If implemented, a ban could also impact TikTok Shop.
“TikTok Shop is a new distribution channel, and brands are performing really well on it,” said Erik Huberman, CEO of marketing agency Hawke Media, which works with clients selling on the platform. “Frankly, there’s no alternative. It would represent a lost revenue stream.”
Similar to competitors like Shein and Temu, TikTok Shop features merchandise from third-party vendors, some of whom ship items from China while competing aggressively on price. To attract more U.S.-based sellers, these platforms have offered lower fees to improve shipping times.
Leveraging the popularity of the TikTok social media app, TikTok Shop merchants often rely on ads and sponsored influencers to promote products to TikTok’s 170 million U.S. users. Merchants fulfill customer orders directly, sometimes using third-party services or TikTok’s own fulfillment options.
For shoppers like Jasmine Whaley, 31, of York, Pennsylvania, TikTok Shop has become a go-to source for clothing, skincare products, and Crocs. This year, she has spent nearly $700 on the platform after being influenced by videos from advertisers and content creators.
TikTok has “cracked the code” for curating content and products that resonate with her, Whaley said. She also noted that her TikTok Shop orders are often delivered faster than those she places on Amazon.
TikTok Shop also offers “LIVE” sessions—live video streams where shoppers can purchase products in real time. Nico Le Bourgeois, head of U.S. Operations for TikTok Shop, stated that the number of monthly Live sessions in the U.S. has nearly tripled over the past year.
According to Facteus, a third-party data firm, U.S. spending on TikTok Shop surpassed spending on Shein and Temu during the seven days leading up to Cyber Monday on December 2, a major online shopping day. Facteus’ data is derived from 140 million consumer debit and credit cards, representing 7% to 10% of all U.S. spending.
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