Luo said she wasn't sure how to respond. “If I didn’t have this [bill]I would definitely recommend them to do so in the US,” she said, adding that her business in the US is “definitely more profitable” than businesses in other markets.
Other cross-border retailers interviewed by the South China Morning Post are more confident. “This is not the time for newcomers to enter the U.S.,” said Hong Ming, co-founder of the Shenzhen-based TikTok Seller Alliance.
The “divest or ban” bill would affect not only Chinese sellers planning to expand into TikTok but also platforms that are stepping up efforts to profit from its popularity among American youth. This is also taking a toll on the platform itself. Through e-commerce.
But the clock is ticking for TikTok. Although the platform has until January 19 next year (the day before Biden's term ends) to remain in the United States, ByteDance has no intention of giving up on its first Chinese-funded project. An app that has gained popularity worldwide.
People familiar with ByteDance's internal discussions say TikTok can afford to lose India, but not the United States, because many of the globally viral TikTok clips are created by American users.
TikTok's exit from the US would also be a blow to the ambitions of Bytedance founder Zhang Yiming, a billionaire who launched the company in a Beijing apartment in 2012. Before handing over the roles of CEO and chairman to his co-founder and college roommate, Liang Yiming, Liang Rubo in 2021, Zhang reiterated his vision for a global business based on TikTok.
Now, as the conflict between China and the United States intensifies, that dream is becoming increasingly distant. The Chinese government's response to the TikTok bill has been relatively restrained, although the Chinese government has in the past made clear that the powerful algorithms that power TikTok cannot be sold to its U.S. owners.
Amid growing uncertainty, influencers are starting to take precautions.
“If you see it, you'll definitely be damaged.” [TikTok] Go away,” said Noah Jay Wood, who has 7 million followers on the platform. He said TikTok's algorithm is good. “Get notified every time something trends [by TikTok]Unlike other platforms where you are always late to the game. ”
While TikTok is a “foundation” for growing his content and followers, Wood said he “recycles” all of his TikTok content to publish on Instagram and YouTube, adding, “It's about finding new audiences with them. It led to this,” he said.
Alessandro Boliari, co-founder and CEO of Miami-based agency Influencer Marketing Factory, said it's important for TikTok creators and sellers to remain active regardless of a potential TikTok ban. He said it was “absolutely” important to diversify one's sensibilities.
“The algorithms that affect how creators reach their audiences are constantly changing, so it's dangerous to rely on just one platform,” he says. Additionally, if TikTok is banned, creators and sellers “could face financial hardship while trying to establish new revenue streams.”
Despite its widespread popularity, TikTok is under intense competitive pressure.
Nearly 94% of U.S. TikTok users also viewed YouTube in the past 90 days, 80% used Instagram and 68% viewed Facebook, according to a March report from market intelligence firm Sensor Tower.
“Google and Meta” [Platforms] Abraham Youssef, Senior Insights Analyst at Sensor Tower, said, “Advertising on short-form video placements, given that each has viable short-form video alternatives in Shorts and Reels. “We will be well-positioned to capture the Lord's needs.”
American shoppers already seem to be losing interest in TikTok.
The total value of goods sold on TikTok in the U.S. last month was just under US$419 million, down from US$446 million in March, but still higher than in February and last month, according to analytics and analytics service EchoTik. It was higher than the previous three months. A data provider centered on TikTok.
Two weeks ago, ByteDance soft-launched TikTok Notes, a photo-sharing app that competes directly with Instagram, in Canada and Australia.
EchoTik founder Wang Haizhou said that despite the cloudy outlook, the United States remains a cultural trendsetter, and American consumers are more affluent, making it more attractive to cross-border merchants. It remains one of the most important markets.
“If a brand becomes popular in the U.S., other markets will follow,” he says.
Hong of the TikTok Seller Alliance said that if TikTok ultimately leaves the U.S., it will use other platforms, even if existing stores powered by Shopify “can't compare to TikTok's stores in terms of sales.” He said it would be.
Uebez's Luo said the next action would depend on the exact terms of the ban. She said simply forcing TikTok to be removed from the U.S. app store would help reach U.S. users who already have the app installed on their phones.
For now, Uebezz is maintaining normal operations in the U.S., with many of its products sitting in local warehouses waiting to be sold, Luo said.
Hong advised sellers to remain calm and continue working. “Let's do what we can and see how things go before the 270-day deadline,” he said.
