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TikTok targets $20 billion in ecommerce sales

TikTok is reportedly planning to quadruple its world ecommerce operations, with the just of marketing $20 billion in merchandise.

The ByteDance-owned social media app will rely closely on like a flash articulate in Southeast Asia to reach its optimistic target. TikTok moreover hopes to moreover boost sales in the U.S. and Europe, Bloomberg reported.

Why we care: TikTok had the very best app retailer utilize across the U.S., UK, France, Germany and Indonesia in the first quarter of 2023, per Teaming up with the social media massive could no longer best back advertisers reach an immense target audience on the most addictive social app on this planet, but moreover a consumer unfriendly who’re more likely to utilize, which could lead to greater conversions.

How does it work? TikTok Shop reveals classified ads to customers on its fundamental social media app while they scroll through a unending feed of rapid video clips and livestreams. The industry mannequin, which combines leisure with impulse buying, has already helped Douyin (TikTok’s sister app) put itself as a prime ecommerce participant in China, competing against the likes of Amazon and Shopee – an fulfillment it hopes to repeat in the U.S.

Why now. Earnings from TikTok’s advertising industry, which has traditionally been its main source of profits, is reportedly falling ensuing from a world slowdown in ad sales. So the app is now focusing its efforts on making the $17 trillion online ecommerce arena its fundamental earnings driver as yet any other.

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Is TikTok banned in the U.S.? The insist of Montana is imposing a ban on TikTok downloads from next year. Lawmakers in other states win moreover proposed identical bills for a nationwide ban across the U.S. – but a final resolution is yet to be made by President Joe Biden.

TikTok combating a doable U.S. ban. TikTok has 150 million U.S. customers and is actively taking steps to discontinuance the ban, along side introducing a differ of security features to tackle nationwide security concerns raised by American politicians. It is giving companions tackle Oracle Corp. the absolute best to test its technology and cordoning off American TikTokers' data.

What TikTok has said. TikTok has declined to exclaim on its ecommerce plans. Nonetheless, the social media did free up an announcement about its future in the U.S.:

  • "A US ban on TikTok is a ban on the export of American culture and values to the billion-plus those who utilize our service worldwide. We're upset to witness this rushed a part of regulations switch forward, despite its truly in depth negative influence on the free speech rights of hundreds and hundreds of Americans who utilize and admire TikTok."

Regarding the writer

Nicola Agius

Nicola Agius is Paid Media Editor of Search Engine Land after joining in 2023. She covers paid search, paid social, retail media and more. Prior to this, she used to be SEO Director at Jungle Creations (2020-2023), overseeing the company’s editorial strategy for multiple websites. She has over 15 years of ride in journalism and has beforehand worked at OK! Magazine (2010-2014), Mail On-line (2014-2015), Reflect (2015-2017), Digital Perceive (2017-2018) and The Solar (2018-2020). She moreover beforehand teamed up with SEO agency Blue Array to co-writer Amazon bestselling book ‘Mastering In-Dwelling SEO’.