TikTok Shop’s Launch Could Face ‘Difficult’ US Market

The TikTok Shop has finally arrived in the US.

The popular social media platform recently announced it is fully launching its online shopping platform in the US, bringing "a new way for people to... find and shop for their favorite products."

TikTok Shop's launch follows the recent allegations of its endorsing cheap goods from China after some US-based users noticed them on its online shopping platform.

TikTok Shop's Features

The TikTok Shop according to TikTok's announcement, is now available for all US-based users to access and shop in after months of testing. It also comes with tools to help businesses turn the idea of buying the stuff they want without ever leaving TikTok a reality. 

These tools allow users to find and directly purchase tagged products used in LIVE videos, browse product tiles, read reviews about the product they wish to buy, and purchase them directly from their favorite brand's profile. All of these are possible in the new Shop tab TikTok users will find on the app, per CNN

For creators with businesses (or at least wanting to get into one), the feature could help them connect with brands for commission-based marketing partnerships. They can also opt-in for the platform's "Fulfilled by TikTok" program, which lets TikTok handle all the logistics they need, including storing, packing, and shipping.

TikTok shop launch banner
(Photo : TikTok)

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To better reach out to users on the platform, TikTok is also adding Shop Ads on their app, allowing users to discover and complete purchases all within the app. Additionally, users who purchase stuff from the TikTok Shop can rest assured that the checkout process will be quick, smooth, and secure thanks to its Secure Checkout tool. 

Users curious about the new TikTok Shop would find it is already populated with thousands of sellers. TikTok revealed to Tech Crunch that more than 200,000 sellers have already signed up for its e-commerce platform; 100,000 creators have also signed up for its Affiliate Program. 

Lastly, because of TikTok's long partnership with commerce platforms like Shopify to provide shopping solutions for businesses, TikTok Shop offers the tools they need to connect to their favorite commerce platforms directly. Merchants from Shopify can also manage their TikTok Shop directly from Shopify through the TikTok for Shopify App.

Challenges In The US

While TikTok and its TikTok Shop found much success in Southeast Asia, it may find entering the US market challenging, with established e-commerce platforms such as Amazon dominating it. A CBS News report, citing a Digiday article, said that Instagram and Facebook tried breaking the mold but have pulled back their plans to sell goods directly to users from their platforms. 

Additionally, the reports of TikTok offering US-based users cheap or counterfeit goods from China don't do the company and its newly launched e-commerce platform any good.

You may recall that Bloomberg reported that it has been recommending random products that seem to be counterfeit items, such as a Nike sweatshirt for $2.99, while their listings were said to be items that say shipped from China. 

TikTok executives refuted Bloomberg's report, saying to the New York Times that more than 90% of sellers on TikTok Shop were based out of the US. Additionally, these counterfeit and cheap goods allegedly from China could trigger US regulatory concerns if TikTok places US-based users' data in the hands of Chinese sellers. 

Related Article: TikTok's Shop Marketplace Allegedly Full of Cheap Chinese Goods

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