ByteDance-owned TikTok is planning to significantly expand its global e-commerce operations and aims to achieve merchandise sales worth up to US$20 billion (RM92 billion) this year, according to sources familiar with the matter, as reported by Bloomberg News.
This ambitious target is a substantial increase from last year’s gross merchandise value of US$4.4 billion (RM20.2 billion), which represents the total value of goods sold on TikTok’s online marketplace, known as TikTok Shop. The company is placing its bets on the growth potential in South-east Asian markets, particularly Indonesia.
TikTok’s e-commerce platform enables users to make purchases through links within the app, particularly during live broadcasts. The company is now seeking to expand its sales efforts in the United States and Europe, as noted in the report.
This move comes at a time when TikTok, as a Chinese-owned company, is facing scrutiny and regulatory challenges due to concerns about potential data harvesting and China’s interests. In response, TikTok is actively working to demonstrate its commitment to user privacy and security.
Last year, the Financial Times reported that TikTok was planning to partner with TalkShopLive, based in Los Angeles, to launch its live shopping platform in North America. This partnership would involve outsourcing the operations of the platform.
9 June 2023
