TikTok aims to grow its TikTok Shop U.S. business tenfold to $17.5 billion in 2024, the report claims. As per a recent Bloomberg article, TikTok aims to expand its TikTok Shop U.S. company tenfold, potentially reaching a valuation of $17.5 billion this year. According to the source, the business recently had internal discussions on the 2024 merchandise volume objective, and as the year goes on, changes may be made.
TikTok would want to compete with Temu and Shein, two other Chinese-owned businesses besides Amazon that have gained popularity in the United States. However, TikTok possesses something that the other two businesses lack: a hugely popular social media network that may be used to attract customers through viral videos.
As reported by Bloomberg, TikTok was expected to reach a global gross merchandise value of almost $20 billion last year. Southeast Asia accounted for the majority of the sales. TikTok is now keen to replicate that popularity in the United States. According to the report, the business intends to introduce TikTok Shop throughout Latin America in the upcoming months.
When TechCrunch asked TikTok for a comment, the company did not reply. More than 5 million new American customers made purchases on TikTok Shop during the Black Friday and Cyber Monday shopping events in November, according to the research. As background, there are about 150 million or more social networking app users in the United States.
The information was released the day after it was revealed that TikTok would begin increasing the fee it charges for every transaction from 2% to 8% for most products. Reductions in merchant subsidies have also begun at TikTok Shop. Notably, these commissions still represent a significant discount over Amazon seller fees, which average 15% across most product categories.
With the official debut of TikTok Shop in September 2023, producers may tag things to let users purchase items from in-feed and live broadcasts. Through their profile pages, brands can create their product portfolios. Users may search for different things, find products through suggestions, explore items in different categories, and manage their orders on a dedicated tab in TikTok Shop.