TikTok eyes US$17.5 billion shopping business on Amazon’s turf

TikTok, the global hit short-video platform owned by ByteDance, aims to grow the size of its US e-commerce business tenfold to as much as US$17.5 billion this year, according to people familiar with the matter, posing a bigger threat to Amazon.com.

The 2024 merchandise volume goal for the US version of TikTok Shop – which melds online entertainment with impulse buying – was discussed in internal meetings in recent weeks and may still change depending on how the business goes, said the people, who asked not to be named discussing private information.

TikTok’s ambitious target sets up a clash not just with Amazon but also fellow Chinese-owned budget retail outfits Temu and Shein, which have been making big strides among younger American shoppers.

Unlike its two rival discounters, TikTok is counting on its social media reach and the appeal of viral videos to hook buyers.

TikTok was last year on track to amass around US$20 billion in global gross merchandise value, with Southeast Asia contributing the bulk of sales through its platform, Bloomberg News reported. The company is now seeking to expand sales across the US and Latin America, where it is planning to launch the e-commerce operation in coming months, two people familiar with the matter said.