TikTok Plans to Take Market Share from US Amazon with 10 Folds Growth Target

TikTok, owned by BYTEDANCE, reportedly plans to expand its United States e-commerce operations, targeting a potential tenfold growth to reach up to $17.5 billion this year. This move is seen as an increased challenge to Amazon.com, as per sources familiar with the situation.

TikTok’s ambitious goal put high pressure on the competition not only with Amazon but also with other Chinese-owned companies like Temu and Shein, which have been gaining popularity among younger American consumers. Unlike its two competing discount retailers, TikTok relies on its extensive social media presence and the attraction of viral videos to attract and engage buyers.

Last year, TikTok was projected to achieve approximately US$20 billion in global gross merchandise value, with the majority of sales coming from South-east Asia, as reported by Bloomberg News. Currently, the company is looking to enhance its sales in the United States and Latin America, with plans to introduce its e-commerce operations in the coming months, according to two sources with knowledge of the situation.