Should You Start Selling on TikTok Shop?

Should You Start Selling on TikTok Shop?

Should You Start Selling on TikTok Shop? A Comprehensive Guide

The Rise of TikTok Shop: A Game-Changer in Social Commerce

TikTok has evolved from a viral entertainment platform into a powerful e-commerce marketplace. With its rapid growth in social commerce, TikTok Shop has become a vital tool for businesses looking to reach engaged audiences directly through the app. Officially launched in mid-2021 in select Asian markets, TikTok Shop expanded to the United Kingdom and later to the United States in September 2023.

By transforming TikTok into a specialized search engine for online shoppers, the platform now allows businesses to sell directly through live shopping events, shoppable videos, and seamless in-app checkout experiences. According to our State of Marketing 2024 Report, 51.9% of US-based marketers now sell on TikTok Shop, highlighting its increasing adoption.

The Success of TikTok Shop: By the Numbers

To understand TikTok Shop’s effectiveness, let's explore key statistics that demonstrate its growth and influence in the e-commerce landscape.

1. TikTok Shop Dominates in Southeast Asia but Expands to the US & UK

  • More than 80% of TikTok Shop sales have been in Southeast Asia.

  • The United States and the United Kingdom are catching up, with notable sales growth in 2024.

  • TikTok Shop’s total Gross Merchandise Value (GMV) has surpassed $11.09 billion, with the highest GMV shares in:

    • Thailand - $2.85B (25.66%)

    • Vietnam - $2.31B (20.79%)

    • Malaysia - $1.63B (14.68%)

    • Philippines - $1.44B (12.98%)

    • Indonesia - $1.34B (12.05%)

    • United States - $853.32M (7.70%)

    • United Kingdom - $603.35M (5.44%)

2. More than 95% of Sales by Volume Come from Southeast Asia

  • Southeast Asia remains the dominant market in volume, contributing 95.88% of total sales.

  • The United States and the United Kingdom have higher GMV per transaction despite lower sales volume.

3. 11% of US Households Have Shopped on TikTok Shop

  • According to an Earnest Analytics Case Study, over 11% of US households have made a purchase on TikTok Shop.

  • US TikTok Shop sales peaked 145% higher in November 2023 than its first month.

4. Over 50,000 TikTok Shops Exist in Indonesia Alone

  • There are 264.48K stores worldwide selling via TikTok Shop.

  • The United States has 31.29K stores, surpassing expectations for its early-stage rollout.

5. Top-Selling Categories on TikTok Shop

  • The biggest product categories include:

    • Beauty & Personal Care - 22.5% of GMV ($2.49B)

    • Womenswear & Underwear - 12.56% of GMV ($1.39B)

    • Menswear & Underwear - 8.06% of GMV ($893.54M)

    • Food & Beverages - 6.85% of GMV ($759.84M)

    • Health Products - 5.42% of GMV ($600.42M)

6. More than 80% of TikTok Shop Sales Come from Repeat Customers

  • 81.3% of TikTok Shop sales in February 2024 came from existing customers.

  • This loyalty growth suggests strong user retention and trust in TikTok’s e-commerce ecosystem.

7. TikTok Shop Dominates Social Shopping GMV

  • As of February 2024, TikTok Shop accounted for 68.1% of total social shopping GMV.

  • It significantly outperforms competitors like Instagram Checkout and Facebook Shop.

8. TikTok Shop’s Most Frequent Buyers: Young and Affluent

  • The largest spending group in the US earns $55k-$90k per year.

  • Young shoppers are the most engaged:

    • 18-24-year-olds are 3.2x more likely than the average shopper to buy from TikTok Shop.

    • 25-34-year-olds are 1.8x more likely.

    • 35-44-year-olds are 1.3x more likely.

Should You Sell on TikTok Shop?

Given TikTok Shop’s rapid expansion and dominance in social commerce, selling on the platform presents both opportunities and challenges. Here are the key advantages and considerations for potential sellers:

Pros:

✅ Massive Audience & Engagement – TikTok’s 1 billion+ active users offer unmatched visibility. ✅ Seamless Shopping Experience – TikTok Shop allows in-app purchases, reducing friction in the buying process. ✅ Live Selling & Viral Trends – The platform thrives on live shopping and influencer-driven marketing. ✅ High Conversion Rates – The combination of TikTok's algorithm and social proof boosts impulse purchases. ✅ Competitive Advantage – TikTok Shop’s relatively new presence in the US means less competition compared to Amazon or Shopify.

Cons:

❌ Limited Audience in Some Regions – TikTok Shop is still rolling out in global markets. ❌ Learning Curve – Sellers must adapt to TikTok’s unique algorithm, content strategy, and short-form video marketing. ❌ Potential Losses – TikTok expected to lose $500M in the US in its first year due to seller incentives and free shipping, raising questions about long-term fee structures.

Getting Started with TikTok Shop

If you’re considering TikTok Shop for your e-commerce business, here’s how to begin:

  1. Sign Up for a TikTok Business Account – Essential for accessing TikTok Shop features.

  2. Register on TikTok Shop Seller Center – Provide business information, product details, and set up payment systems.

  3. Leverage TikTok Ads & Influencers – Partner with TikTok Shop influencer agencies to maximize reach.

  4. Utilize Live Selling – Engage with audiences in real-time to boost conversions.

  5. Optimize Product Listings – Use engaging videos and clear descriptions to attract buyers.

Final Thoughts: Is TikTok Shop Right for You?

TikTok Shop is a powerful yet evolving marketplace, offering businesses a chance to capitalize on social commerce trends. With high user engagement, strong repeat customer rates, and influencer-driven sales, TikTok Shop is proving to be more than just a trend—it’s a serious contender in the e-commerce space.

For sellers looking to diversify revenue streams and reach younger, digital-first consumers, TikTok Shop is an opportunity worth exploring. Interested in starting your TikTok Shop journey? Learn how to set up your TikTok Shop today and leverage influencers to boost your sales!

Back to blog