TikTok’s ambitious push into social shopping is finally seeing results in the United States as its platform, TikTok Shop, recorded significant sales during the 2024 holiday season.
For years, social media platforms have aimed to replicate the success of Asian markets in the US by integrating shopping features, but progress had been slow. However, the tide seems to have turned with TikTok’s strategic efforts. On Black Friday, TikTok Shop broke the $100 million mark in US sales, significantly outperforming its previous years — this achievement was nearly three times the sales of 2023. The platform captivated audiences with over 30,000 livestreams, one of which generated $2 million in sales during a single session.
This success didn’t happen overnight. TikTok, backed by its parent company ByteDance, has steadily invested in its e-commerce capabilities. Since testing shopping buttons in 2020, the platform expanded its offerings, launching TikTok Shop more broadly in late 2022 and further enhancing its ecosystem by connecting creators with manufacturers. This continuous development aligns with TikTok’s attempt to emulate its Chinese counterpart, Douyin, renowned for vast sales driven by influencer-led livestreams.
Despite TikTok’s promising growth, it remains a small part of the overall e-commerce landscape in the US. Data from Adobe Analytics highlights that while online sales on Black Friday reached $10.8 billion, retailers like Amazon still dominate, although social media influencers are increasingly influential. About 20% of e-commerce revenue on Cyber Monday was attributed to affiliate marketing, a notable 7% increase from the previous year.
Max Benator of the social-shopping agency Orca acknowledges TikTok Shop’s growth, noting a dramatic increase in gross merchandise value across clients. Meanwhile, companies like Outlandish are also seeing jumps in sales figures, betting on the continued rise of live shopping which blends entertainment with commerce in a more mature market like China.
The persistence of TikTok in refining and promoting its shopping features contrasts with competitors like Instagram, which have downsized their efforts. Instagram notably retracted its Shop tab, pivoting instead towards partnerships with major players like Amazon. TikTok’s unwavering push has paid dividends by integrating agencies and creators to adopt and promote its commerce tools, making it a priority during peak shopping periods.
Julian Reis, CEO of SuperOrdinary, sees this as a crucial moment for live shopping in America. The integration of entertainment with shopping through TikTok forms a comprehensive ecosystem encompassing creators, affiliates, and brands. However, it remains to be seen whether TikTok’s momentum can withstand potential regulatory hurdles, including possible bans in the US.
TikTok’s dedication to social shopping is reshaping e-commerce dynamics in the United States. By successfully integrating entertainment and retail, TikTok has demonstrated that American consumers are indeed open to evolving their shopping habits. Whether this trend will continue or face obstacles remains uncertain, but the current trajectory shows promise.
Source: Businessinsider
