New Insights Reveal Growth of In-Stream Shopping on TikTok

TikTok Shop is an in-app shopping experience that allows users to discover and purchase products from their favorite creators and brands directly within the TikTok app. It aims to create a new shopping culture rooted in discovery and connection among sellers, creators, and the TikTok community. The platform empowers brands, sellers, and creators with tools to sell products directly on TikTok. Since its launch in 2021, TikTok Shop has expanded internationally and grown to over 15 million sellers worldwide.

TikTok has taken several steps to ensure a safe and secure shopping environment within TikTok Shops:

• Seller Verification: Sellers are required to provide documentation to verify their identity, business type, and eligibility to operate their business. Applications are scrutinized to comply with regulations.

• Probation Period: Approved sellers undergo a probation period to learn the rules and adjust to the platform.

• Policy Enforcement: TikTok Shop policies are actively enforced, and the community can report content that violates the rules.

• Product and Account Actions: TikTok has prevented 37 million products from being listed that breached policies, removed 133,000 individual products after listing, deactivated accounts of over a million sellers, and removed eCommerce features from 500,000 creators for policy violations.

The U.S. TikTok sell-off bill, which has been approved, could have a significant impact on TikTok Shops. Brands and users may be hesitant to rely on the app due to uncertainty about its future in the American market, as the Chinese Government suggests it might be removed. The sell-off bill could lead to a slowdown in TikTok's in-stream shopping push, as brands and users might be more cautious about entering credit card information into an app that the U.S. Government has raised trust issues with. This hesitancy could affect TikTok Shops' growth, especially in the U.S. market.