ByteDance-owned TikTok, the popular social media platform, is planning to make a significant push in its e-commerce business.
According to Bloomberg sources, TikTok aims to expand its worldwide e-commerce operations to generate as much as $20 billion in merchandise sales through its online marketplace, TikTok Shop, this year.
This ambitious target represents a quadrupled increase from the $4.4 billion in gross merchandise value achieved last year. Now, it aims to leverage its massive user base and growing live shopping trend to drive substantial growth in merchandise sales.
With over 1 billion monthly active users (MAUs) worldwide of which over 150 million are located in Southeast Asia, TikTok is betting on the Southeast Asia market, particularly markets like Indonesia, to drive this growth.
The company is also actively working to expand its e-commerce sales in the United States (where it boasts 150 million users) and Europe, recognizing the significant market potential in these regions. To that end, TikTok is reportedly partnering with Los Angeles-based TalkShopLive to launch a live shopping platform. This partnership aims to outsource the operations of TikTok's e-commerce platform, allowing the company to tap into the growing trend of live shopping in North America.
Despite facing scrutiny from governments and regulators due to concerns over data privacy and an alleged political affiliation with the Chinese state, TikTok's growth and expansion plans do not appear to be waning. With its unique combination of social media and e-commerce, TikTok is poised to become a major player in the global online shopping landscape.