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TikTok aims to grow size of US e-commerce business tenfold this year - Bloomberg

Published 01/04/2024, 09:20 AM
Updated 01/04/2024, 09:22 AM
TikTok aims to grow size of US e-commerce business tenfold this year - Bloomberg

According to a report by Bloomberg on Thursday, TikTok is aiming for a tenfold increase in its US e-commerce business this year, setting an ambitious target of $17.5 billion in merchandise volume.

The aggressive target pits the platform against giants like Amazon (NASDAQ:AMZN) and Shein as the platforms vie for a share of younger American shoppers.

Unlike its discount-focused rivals, Bloomberg, citing sources, said TikTok's strategy is aiming to leverage its social media reach and viral video prowess to drive buying. The volume goal was said to have been discussed in internal meetings in recent weeks. However, it could change depending on how the business goes.

The company hopes its blend of entertainment and shopping, already successful in Southeast Asia, will entice US consumers to ditch Amazon and Shopee for TikTok Shop.

This push comes as ByteDance, TikTok's parent company, seeks new growth engines beyond social media advertising, with revenue surpassing $110 billion in 2023.

TikTok's success hinges on its ability to convert its 150 million US users into active shoppers. Black Friday and Cyber Monday saw encouraging signs, with over 5 million new customers making purchases. However, competition from established players like Amazon and the growing comfort with Chinese platforms like Shein and Temu present significant competition.

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