TikTok makes a play for US market share

TikTok has set its sights on expanding its e-commerce operations in the US. The company aims to grow its American e-commerce business to a staggering $17.5B this year, a tenfold increase. This ambition sets it on a collision course with industry giants like Amazon, as well as Chinese-owned companies Temu and Shein.

• Game Plan: TikTok’s US version of TikTok Shop has set a 2024 merchandise volume goal, a strategy discussed in recent internal meetings. The business model is unique, leveraging the platform's social media reach and viral videos to attract buyers.

• Expansion Plans: This includes increased sales in the US and Latin America, where the company is set to launch its e-commerce operation in the coming months. Despite ByteDance’s denial of the speculated US merchandise sales figures, the company has shown significant growth. It saw a 30% revenue surge in 2023, reaching over $110B.

• Hooking You In: TikTok Shop allows users to make purchases while scrolling through videos and live streams, an attempt to bridge the gap between Amazon's shopping ease and Instagram's product discovery experience. The platform has already achieved success in China, snagging a considerable portion of consumer spending from Alibaba and JD.com.

• Further Growth: TikTok’s global e-commerce ambitions include an acquisition of GoTo Group’s e-commerce unit, Tokopedia, in Indonesia, a $1.5B deal.

With these ambitious plans, TikTok is set on being a major player in the global e-commerce industry.