ByteDance Inc.'s global hit short video platform TikTok aims to grow its U.S. e-commerce business 10 times this year to $17.5 billion, according to people familiar with the matter, making it more attractive to Amazon. It is said to be a major threat. .com.
The 2024 product sales target for the U.S. version of TikTok Shop, which combines online entertainment and impulse purchases, has been discussed in company meetings in recent weeks and could still change depending on how the business goes. Officials spoke on condition of anonymity. Discuss personal information.
TikTok's ambitious goals will put it in conflict not only with Amazon, but also with fellow Chinese-owned low-cost retailers Temu and Shein, which are making big strides among young U.S. shoppers.
Unlike its two discounter competitors, TikTok is banking on its social media reach and the appeal of viral videos to attract buyers.
JD.com and Alibaba's Taobao promote 'refund only' policy to counter Pinduoduo strategy
JD.com and Alibaba's Taobao promote 'refund only' policy to counter Pinduoduo strategy
TikTok was on track to amass around US$20 billion in global gross merchandise value last year, with Southeast Asia accounting for the majority of sales through its platform, Bloomberg News reported. The company is currently aiming to expand sales in the United States and Latin America, and plans to launch an e-commerce operation in the coming months, two people familiar with the matter said.
TikTok said in a statement that “the U.S. product sales estimates provided by Bloomberg are inaccurate.”
Founded more than a decade ago by Zhang Yiming and Liang Rubo, ByteDance has grown into an internet leader worth more than US$200 billion thanks to the popularity of short video platform TikTok and its Chinese sibling Douyin. TikTok Shop is one of the fastest-growing features for the Beijing-based privately held company, which is seeking new growth drivers beyond social media advertising. ByteDance's revenue soared about 30% in 2023 to more than $110 billion, outpacing the projected growth of much more established social media rivals Metaplatforms and Tencent Holdings.
TikTok Shop allows users to purchase products while scrolling through a permanent feed of short videos and live streams within the main social media app, and hopes consumers will use it as an alternative to Amazon and Sea's Shopee. ing. The format is an effort that combines the ease of shopping on Amazon with the product discovery offered by apps such as Meta's Instagram, and is an effort by Douyin to already control a significant portion of China's consumer spending from Alibaba Group Holding and Jingdong. It is helping to take away from the merchant city (especially after the lockdown rules came into force). The pandemic has caused people to spend more time online. Alibaba owns the South China Morning Post.
ByteDance is focused on exporting its e-commerce model to the world. In the U.S., TikTok offers free shipping and subsidies to influencers who sell gadgets, clothing and makeup through videos and livestreams. The company said more than 5 million new U.S. customers bought something on TikTok in November, driven by Black Friday and Cyber Monday sales. There are approximately 150 million users in Japan.
TikTok announced Wednesday that it will increase the fees charged to sellers to 6% of each sale starting in April and 8% for most product categories in July, ending promotions meant to lure sellers. did. Although these fees are significantly lower than Amazon's seller fees, which are typically around 15%, the increase shows that TikTok is moving quickly to make more money from its e-commerce platform.
Americans increasingly shop on Chinese e-commerce apps, including popular fashion site Shein and PDD Holdings' Temu, which exploded in popularity after airing a Super Bowl ad in February. I no longer feel resistance.
It is unclear what sales goals TikTok Shop has set for global or other markets. In Indonesia, TikTok took control of GoTo Group's e-commerce arm Tokopedia in a $1.5 billion deal that allowed the company to resume online retail services after months of scrutiny by the local government.
