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TikTok Plans to Launch New E-commerce Store in the US

TikTok plans to launch an in-app online retail store in the US, featuring its own line of products, and posing direct competition to Amazon and other e-commerce giants.

TikTok Plans to Launch New E-commerce Store in the US

TikTok is reportedly planning to launch an online retail store in the United States as early as next month. This in-app shopping section will feature TikTok's own line of products, sourced from manufacturers in China. This new move is poised to make TikTok a direct competitor to major e-commerce platforms such as Amazon, Shein, and Temu.

As per the report by Semafor, the new store on TikTok will offer a variety of products like toys and kitchen gadgets. These products will be available within the platform via the new online store and a dedicated e-commerce tab in TikTok Shop, a feature where businesses sell their products on the app in exchange for a commission.

TikTok confirmed last week that it is testing a "Trendy Beat" shopping feature in the U.K., which is managed by a Singapore-based company owned by TikTok parent ByteDance. While TikTok initially denied that this new e-commerce offering was being tested in the U.S., TechCrunch discovered a trademark application in the U.S. for Trendy Beat, suggesting that the feature could soon be integrated into the U.S. version of the app.

The company's e-commerce strategy in the U.S. is still in its early stages, with TikTok Shop being tested since November last year, but it has yet to gain significant traction. This could be why TikTok has held off on testing Trendy Beat in the U.S. market.

While TikTok's e-commerce ventures have been successful in Asia, the company is banking on Southeast Asia to further its business growth. According to Bloomberg, TikTok aims to more than quadruple its e-commerce venture to $20 billion in gross merchandise value in 2023, a significant leap from last year's sales of $4.4 billion.