TikTok reportedly targets US$17.5bn for eCommerce business, posing threat to competitors

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Video sharing social media app TikTok is reportedly looking to grow the size of its US eCommerce business to as much as US$17.5 billion in 2024, according to people familiar with the matter.

The volume goal for the US version of TikTok Shop was reportedly discussed in internal meetings according to Bloomberg. However, plans may change depending on how the business goes, they said.

TikTok Shop is an eCommerce feature on TikTok that allows merchants, brands and creators to display and sell items on the platform.

Don't miss: Why top brands in Indonesia are pouring ad dollars into retail media and eCommerce advertising

TikTok's target reportedly poses a big threat to Amazon and will likely clash with Chinese-owned Temu and Shein, which have been making big strides among young American shoppers.

According to Bloomberg, TikTok aims to amass an estimated US$20 billion in global gross merchandise, with Southeast Asia making up the bulk of sales.

TikTok reportedly said in a statement to Business of Fashion that the speculated US merchandise sales figures represented by Bloomberg are inaccurate.

It is unclear what sales targets TikTok Shop has set globally or for the Southeast Asia market. MARKETING-INTERACTIVE has reached out to TikTok for more information.

TikTok has also been making moves to grow TikTok shop in Southeast Asia. In December 2023, TikTok forged a partnership with Indonesian digital company GoTo Group (GoTo) to drive long-term growth for Indonesia's micro, small and medium enterprises sector.

Under the partnership, TikTok will invest US$1.5 billion in GoTo. Meanwhile, GoTo's eCommerce arm, Tokopedia and TikTok Shop Indonesia will be combined under the existing Tokopedia entity. TikTok will take a controlling stake.

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