Is TikTok Shop poised to be the next big thing in e-commerce? Experts think so.
TikTok Shop launched in the U.S. on Sept. 12, and while it’s still in its infancy, signs are pointing to a boom.
According to a new report by The New Consumer and Coefficient Capital, U.S shoppers generated $260 million in gross merchandise volume on the platform in October 2023 per YipitData estimates. That was up 43% from September. Of consumers who say they use TikTok once a month or more, 69% say they are willing to buy something. Meanwhile, 28% said they already have, the report said.
In addition, almost all consumers (93%) who made a purchase said they’d make another purchase, and that they were satisfied with the overall experience.
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Via TikTok Shop, brands and creators are able to showcase and sell products directly on the platform, through a suite of in-app shopping touchpoints. According to the app, 70% of its users discover new brands and products on TikTok.
In the Consumer Trends survey, apparel and accessories, as well as health and beauty, make up the top categories of products sold. Buyers, on average, placed 1.5 orders, spending $45.
Demographic-wise, Gen Z and Millenials make up the majority of TikTok Shop users with 55% of under the age 35.
For brands, this is an opportunity to drives sales and target the lucrative younger audience with content that is engaging, shoppable and authentic. Within TikTok Shop, sellers also have the opportunity to reach their consumers on a multitude of fronts.
Companies already taking advantage include Revolve, which is currently selling more than 20,000 items, PacSun, Clove Shoes, Alo Yoga and more.
Part of that is its Live Shopping feature, allowing brands to promote, sell and engage with audience in real time. TikTok is just one player in the livestream e-commerce marketplace, which has grown to an estimated $32 billion this year.
“TikTok’s transformation into a shopping platform indicates that livestream shopping will continue to evolve and grow,” explained GlobalData analyst Smitarani Tripathy. “It offers a unique and immersive video-based experience that captures the attention of consumers. The platform’s emphasis on authenticity and relatability makes it more appealing to consumers who are looking for genuine recommendations.”
