Winning! TikTok user repurchase rate exceeds Temu

TikTokShop was officially launched in the United States in September last year , allowing American users to purchase various products directly in the app.

As a well-known domestic overseas e-commerce platform, many people must be curious about the development of TikTokShop in the United States. A set of data recently released by the well-known data analysis agency Earnest Analytics may be able to answer this question.

According to Earnest Analytics, TikTok Shop has dominated the social shopping space since its launch. As of February this year, TikTok Shop's sales accounted for 68% of the total merchandise value of social shopping in the United States. In comparison, the total merchandise value of other well-known social platforms combined accounts for less than 1% of the market share.

Data released by Earnest shows that since its launch in the United States, about one in 10 households has shopped on TikTokShop. On average, TikTokShop users buy 1 to 2 items per month, with an average order transaction amount of $40. However, unlike other e-commerce platforms where users buy multiple items at a time, TikTokShop users usually only buy one item at a time.

In addition, about 27% of TikTokShop users will return to the platform to shop again 5 months after their first purchase on the platform. In this respect alone, TikTokShop performs better than most platforms, including Temu, which is also from China, and Walmart and Etsy, which are old American platforms. Amazon ranks first, with this data of 36%.

In addition, more than 81% of TikTok Shop's total sales in February came from repeat customers, up from 64% in November last year. The report believes that this proportion is related to the platform's high retention rate.

Michael Maloof, Earnest's marketing director, believes that TikTok Shop's ability to build its own user base in such a short period of time has a lot to do with TikTok, which currently has more than 100 million adult users in the United States. In addition, the platform's recommendation mechanism will play more videos related to products that users have purchased or are interested in, which will also promote consumers' shopping behavior to a certain extent.

However, using TikTok Shop does not mean that other platforms will not be used. The survey also found that during the survey period, 97% of users who shopped on TikTok Shop also shopped on Amazon. 55% also used Etsy, followed by Temu (39%), Old Navy (38%), SHEIN (37%) and eBay (32%).

Although TikTok Shop has a certain degree of overlap with some low-priced clothing platforms, Earnest believes that TikTok Shop has not had a negative impact on these platforms so far. In the long run, some of these platforms will even reach more potential users through TikTok. Take Temu as an example. The platform has 1.1 million followers on TikTok and more than 5.3 million likes. As of writing, the number of views of its latest video has reached 16,800, and it was released less than 14 hours ago.

TikTok

Repurchase rate

USA