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TikTok Shop launches in the U.S. as the company bets big on e-commerce

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After months of testing, TikTok is fully launching its e-commerce product in the U.S., in an effort to translate the app’s cultural relevance among young consumers to sales.

FILE - The icon for the video sharing TikTok app is seen on a smartphone, Feb. 28, 2023, in Marple Township, Pa. The state of Montana is asking a federal judge to allow its ban on downloading TikTok to take effect in January, even though the company argues it violates free speech rights. The state argues there are other apps that people can use to communicate with each other that don't include the risk of sharing data with the Chinese government.

Shopping on social sites, known as social commerce, is estimated to be a $69 billion market in the U.S., led by Meta, which owns Facebook and Instagram, according to Insider Intelligence. ByteDance, the Beijing company that owns TikTok, already runs a thriving social media marketplace on Douyin, its twin video app for the Chinese market. This year, Insider Intelligence had projected 33 million U.S.

TikTok does have a few things working for it, namely that it caters to a young consumer base whose retail habits are still being formed. It also has an army of creators who produce an endless amount of content daily that's tailored algorithmically for users, Enberg said.

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