TikTok Wants to Hit $17.5B in Online US Sales in 2
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Posted On: 01/12/2024 1:53:05 AM
TikTok Wants to Hit $17.5B in Online US Sales in 2024
TikTok plans to expand its operations in the American e-commerce sector to roughly $17.5 billion this year. TikTok, a product by ByteDance Limited, announced its goal in recent meetings focused on its progress. The achievement of this objective would put TikTok at a better strategic position to acquire an even larger share of the e-commerce market, which is currently held by Amazon.com Inc.
Unlike strategies employed by peers such as Shein and Temu, TikTok shop centers blend convenient shopping experiences with online entertainment in the United States. This strategy encourages consumers to make impulse purchases. TikTok hopes to attract more customers while retaining its current ones by leveraging the power of viral content and its social media prowess.
Last year, TikTok was set to hit almost $20 billion in gross merchandise value globally, with a majority of its sales coming from southeast Asia.
In addition to expanding in the U.S., the company wants to expand in Latin America and plans to initiate e-commerce operations in this region in the next couple of months. It should be noted, however, that the companies did issue a statement noting that the quoted figures weren’t accurate.
ByteDance, which was founded by Liang Rubo and XhangYiming, has grown into a leading internet entity valued at a minimum of $200 billion. TikTok shop is set to become the company’s most rapidly expanding offering as the organization works to diversify beyond social-media ad-revenue streams.
In the last 12 months, ByteDance saw a surge of nearly 30% in revenues, which surpassed $100 billion. This figure is significantly higher than the growth forecasts of established social-media giants such as Tencent Holdings Limited and Meta Platforms Inc.
Through TikTok shop, consumers can buy products while browsing through live broadcasts and short videos. The platform’s shopping experience is focused on rivaling that of Amazon and Shopee by Sea Limited, by blending the discovery element found in applications such as Instagram with the convenience of online shopping.
This model has gained traction via Douyin in China, having already captured a considerable share of the market from e-commerce giants such as JD.com Inc. and Alibaba Group Holding Limited, particularly during the pandemic when online activity increased. Douyin is the sister app for TikTok.
Incentives such as bonuses for influencers and free shipping are currently being used to promote products on TikTok, with figures showing that more than five million new consumers made purchases during Cyber Monday and November Black Friday events. At the moment, TikTok has about 150 million users in America. With the American audience becoming more receptive to shopping on global e-commerce platforms, this number is expected to increase significantly.
As e-commerce claims an increasing share of all commerce conducted around the world, specialized segment operators focusing on healthcare e-commerce, such as NextPlat Corp. (NASDAQ: NXPL) (NASDAQ: NXPLW), could have an edge over generalists that aren’t looking to dominate a clearly defined section of the industry.
NOTE TO INVESTORS: The latest news and updates relating to NextPlat Corp. (NASDAQ: NXPL) are available in the company’s newsroom at https://ibn.fm/NXPL
Please see full terms of use and disclaimers on the BioMedWire website applicable to all content provided by BMW, wherever published or re-published: http://BMW.fm/Disclaimer
TikTok plans to expand its operations in the American e-commerce sector to roughly $17.5 billion this year. TikTok, a product by ByteDance Limited, announced its goal in recent meetings focused on its progress. The achievement of this objective would put TikTok at a better strategic position to acquire an even larger share of the e-commerce market, which is currently held by Amazon.com Inc.
Unlike strategies employed by peers such as Shein and Temu, TikTok shop centers blend convenient shopping experiences with online entertainment in the United States. This strategy encourages consumers to make impulse purchases. TikTok hopes to attract more customers while retaining its current ones by leveraging the power of viral content and its social media prowess.
Last year, TikTok was set to hit almost $20 billion in gross merchandise value globally, with a majority of its sales coming from southeast Asia.
In addition to expanding in the U.S., the company wants to expand in Latin America and plans to initiate e-commerce operations in this region in the next couple of months. It should be noted, however, that the companies did issue a statement noting that the quoted figures weren’t accurate.
ByteDance, which was founded by Liang Rubo and XhangYiming, has grown into a leading internet entity valued at a minimum of $200 billion. TikTok shop is set to become the company’s most rapidly expanding offering as the organization works to diversify beyond social-media ad-revenue streams.
In the last 12 months, ByteDance saw a surge of nearly 30% in revenues, which surpassed $100 billion. This figure is significantly higher than the growth forecasts of established social-media giants such as Tencent Holdings Limited and Meta Platforms Inc.
Through TikTok shop, consumers can buy products while browsing through live broadcasts and short videos. The platform’s shopping experience is focused on rivaling that of Amazon and Shopee by Sea Limited, by blending the discovery element found in applications such as Instagram with the convenience of online shopping.
This model has gained traction via Douyin in China, having already captured a considerable share of the market from e-commerce giants such as JD.com Inc. and Alibaba Group Holding Limited, particularly during the pandemic when online activity increased. Douyin is the sister app for TikTok.
Incentives such as bonuses for influencers and free shipping are currently being used to promote products on TikTok, with figures showing that more than five million new consumers made purchases during Cyber Monday and November Black Friday events. At the moment, TikTok has about 150 million users in America. With the American audience becoming more receptive to shopping on global e-commerce platforms, this number is expected to increase significantly.
As e-commerce claims an increasing share of all commerce conducted around the world, specialized segment operators focusing on healthcare e-commerce, such as NextPlat Corp. (NASDAQ: NXPL) (NASDAQ: NXPLW), could have an edge over generalists that aren’t looking to dominate a clearly defined section of the industry.
NOTE TO INVESTORS: The latest news and updates relating to NextPlat Corp. (NASDAQ: NXPL) are available in the company’s newsroom at https://ibn.fm/NXPL
Please see full terms of use and disclaimers on the BioMedWire website applicable to all content provided by BMW, wherever published or re-published: http://BMW.fm/Disclaimer
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