TikTok officially rolls out in-app shopping service TikTok Shop in the US

September 13, 2023 9:55 am

TikTok officially launched TikTok Shop, an in-app e-commerce service, in the US on Tuesday, after months of testing.

According to a company blog post, TikTok Shop allows users to find and directly purchase products used in live videos, tagged in content shown on their algorithm-driven For You page, pinned on brand profiles, or marketed in a new “Shop” tab.

“With community-driven trends like #TikTokMadeMeBuyIt inspiring people to discover and share the products they love, TikTok is creating a new shopping culture,” the company wrote. “With TikTok Shop, we’re giving people a place to experience the joy of discovering and purchasing new products without leaving the app.”

The short video app is also offering “Fulfilled by TikTok,” a program that handles all of the logistics for sellers, including storing, packing and shipping.

TikTok is looking to quadruple its merchandise sales by the end of the year to hit $20 billion, according to Bloomberg.

The goal seems a bit aggressive given that TikTok Shop has only seen significant success in Southeast Asia so far. According to Southeast Asian venture capital firm Momentum Works, TikTok facilitated $4.4 billion in transactions in the region last year, up from $600 million in 2021. 

In the UK, its first market outside Asia, performance was lackluster. Additionally, a Financial Times investigation revealed there had been a mass staff exodus from the company’s e-commerce team in London, who complained of an aggressive working culture enforced by the company’s Chinese leadership.