TikTok plans to challenge Amazon: U.S. e-commerce business expands tenfold to $17.5 billion

According to Bloomberg, TikTok plans to expand its U.S. e-commerce business tenfold this year to $17.5 billion (approximately 124.95 billion yuan), which will pose a greater competitive threat to Amazon. This move shows TikTok’s ambitions in the e-commerce field and will further intensify competition among Internet giants. As TikTok continues to grow in user base and influence, its plan to expand its e-commerce business is expected to bring huge business opportunities to it, and will also bring greater growth to traditional e-commerce platforms such as Amazon. According to people with knowledge of the matter, ByteDance has discussed the U.S. TikTok Shop’s 2024 product sales target in internal meetings in recent weeks. This target may be adjusted based on business progress, but specific details will not be disclosed for the time being.

In addition, according to The Information, TikTok plans to adjust its platform’s commission policy in the next few months and cancel seller subsidies. . According to reports, TikTok has notified sellers that it will increase commissions on most items from the current 2% and 30 cents per transaction to 8%. The move is expected to have an impact on sellers' profits.

TikTok Shop plans to reduce subsidies for some merchants while limiting offers to best-selling items as the company cuts spending on the service, according to a person familiar with the matter.

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