TikTok purportedly considering opening an online store in the US

Thursday 29 June 2023 13:01 CET | News

Video-sharing app TikTok allegedly plans to open an online retail store in the US to cater to the demands of its customers.


The new store will place TikTok in the position of being a direct competitor of ecommerce platform retailers such as Amazon, Shein, or Temu. According to previous reports, the new store will be distinct from the existing TikTok Shop feature that requires brands to pay a commission to sell their products on the platform.

As part of the initiative, it is reported that TikTok is acquiring its inventory and that it will handle aspects such as logistics and customer service. Reports also suggest that the items that the platform will offer for sale, including kitchen gadgets and toys, will be manufactured in China. 

Users interested in browsing the available goods will be able to do so through the ecommerce tab within the app, as well as via the new store. The video-sharing app might have subtly indicated its intention to introduce an online store in a recent job listing. Initially, the store was referred to as a central hub where customers could access promotions, sales, and manage their orders.


Video-sharing app TikTok allegedly plans to open an online retail store in the US to cater to the demands of its customers.


More details about the possible launch

According to the initial report, this is part of TikTok’s latest strategy that the brand opted for after it observed that Chinese manufacturers struggled with providing Western customers with adequate services. Moreover, the shift was also made as a response to the need of reducing long shipping times for products sent from China to the UK and the US. 

While a representative from TikTok has acknowledged that the company was conducting tests regarding a retail feature in the UK, the platform has yet to confirm an expansion of this kind in the US. 

As previously noted, TikTok’s decision to sell physical goods directly would be a first among social media companies in the West. To make this transition, the company would undergo significant investments in warehouse capabilities and supply chain management. 

However, as experts have also noted, this move will most likely lead to more brands joining TikTok Shop, one of the avenues that the platform has launched and that has not had significant traction so far. 

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Keywords: product launch, expansion, ecommerce, payments , retail, online shopping, online platform
Categories: Payments & Commerce
Companies: TikTok
Countries: United States
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Payments & Commerce


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