TikTok cancels ecommerce expansion in Europe and the US

Tuesday 5 July 2022 14:43 CET | News

China-based social media platform TikTok has abandoned plans to join the European and US live ecommerce market.

TikTok has abandoned plans to expand its live ecommerce initiative in Europe and the US, after the social media platform’s foray into QVC-style shopping in the UK was hit by internal problems and struggled to gain traction with consumers.

The company’s venture called ‘TikTok Shop’ was launched in the UK last year, its first market outside Asia. Brands and influencers broadcast live and sell products through a clickable orange basket on the screen of the viral short-video app.

Livestream commerce is seen as the future of shopping by social media platforms. They take a commission on sales, with rivals YouTube and Instagram developing similar features in Europe. The model has proved lucrative for TikTok parent ByteDance, which has seen sales on Chinese sister app Douyin more than triple year on year, selling more than 10 billion products, as per the press release.

TikTok had planned to launch the feature in Germany, France, Italy and Spain in the first half of 2022, before expanding into the US later in the same year, according to several people briefed on the matter. These expansion plans have been dropped after the UK project failed to meet targets and influencers dropped out of the scheme.

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Keywords: ecommerce, livestream shopping, expansion, social commerce
Categories: Payments & Commerce
Companies: TikTok
Countries: Europe, United States
This article is part of category

Payments & Commerce


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