Could TikTok be Amazon's new rival?

ByteDance-owned TikTok is set to expand its US e-commerce business aggressively, targeting sales of up to 17.5 billion dollars in 2024. The ambitious plan, discussed in internal meetings according to news outlet South China Morning Post, positions TikTok as a formidable competitor against major players such as Amazon, Shein, and Temu.

Leveraging its social media influence and viral video appeal, TikTok plans to broaden its sales in the US and Latin America, with a strategic focus on its TikTok Shop feature.

The parent company, ByteDance, aims to export its e-commerce model globally, offering incentives like free shipping and subsidies to influencers. Despite a fee increase for merchants, TikTok's rates remain lower than Amazon's, signalling its intent to generate substantial revenue from its e-commerce platform.

As Chinese e-commerce gains popularity in the US, TikTok faces the challenge of establishing a strong presence in this competitive market.