ByteDance, the parent company of TikTok, the short video platform launched its online shopping service in 2021 named TikTok Shop in Indonesia. The ecommerce platform is currently available in the UK and the US markets.
To boost its online retail platform in the US, ByteDance is planning to prohibit links to other ecommerce platforms such as Amazon.
This step may help the company lead people to use TikTok Shop, according to The Information’s report. US users on TikTok who want to buy something they have seen on the app will now need to purchase it from the TikTok Shop.
According to the report, TikTok Shop is expected to lose more than USD 500 million in the US this year.
TikTok is expected to invest heavily in hiring, building a delivery network and subsidising merchants that offer double-digit–percentage discounts and free shipping.
Consumers in the US are spending nearly USD 3-4 million a day on TikTok Shop. By the end of 2023, the company expects the figure to exceed USD 10 million, the report said.
Due to security concerns, New York City has recently banned TikTok on city-owned devices. The city won’t allow employees to download or use the app or access the TikTok website from any city-owned devices.
Also, a US federal judge stopped the restriction on TikTok in the state of Montana a few days back. The state wanted a prohibition on the Chinese short-video app TikTok starting 1 January 2024.
