US spending on TikTok Shop gains as TikTok faces threat of ban, data shows
TikTok users spent heavily to buy merchandise from a range of vendors on the ecommerce platform TikTok Shop so far this holiday shopping season, according to TikTok estimates and a Reuters analysis of spending patterns measured by data from Facteus.
The patterns show that TikTok Shop, which launched in the US in September 2023, has likely gained market share in ecommerce at a critical moment. TikTok Shop serves as an ecommerce channel for major brands such as e.l.f. Cosmetics, Ninja Kitchen, among other products.
TikTok Shop said in a press release in late November that its sales had reached $100 million on Black Friday, the day after Thanksgiving, when bargain-hunting American consumers spent heavily online. Previously, it said the number of people purchasing goods on TikTok Shop each month had nearly tripled. Reuters could not independently verify its claims.
A US federal appeals court on Friday upheld a law requiring Chinese-based ByteDance to divest TikTok in the US by early next year or face a ban. A ban of the popular short video app, if it happens, could extend to TikTok Shop, too.
«TikTok Shop is a new distribution channel and brands are doing really well on it,» said Erik Huberman, CEO of marketing agency Hawke Media, which has clients that sell products through the feature. «Honestly, there isn't an alternative. It will be a lost revenue stream.»
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