Cut off Amazon's external links! Is TikTok's US store going to take off?

Cut off Amazon's external links! Is TikTok's US store going to take off?

According to a new report from The Information , TikTok is planning to ban links on the platform that redirect to external e-commerce platforms such as Amazon .

 

According to speculation from industry insiders , this move may be aimed at encouraging TikTok users to purchase goods on TikTok Shop , and it may also further accelerate the process of a full closed loop of e-commerce.

 

By banning external e-commerce links, TikTok will prevent influencers on the platform from promoting products such as kitchenware and furniture that they sell on Amazon. Previously , these influencers would receive a small commission if someone purchased the products sold by the influencer on Amazon .

 

Although it is not yet known when TikTok will issue the ban, once the ban takes effect, TikTok users will only be able to purchase products recommended by platform experts through TikTok Shop .

 


In addition, TikTok Shop links will allow users to purchase products directly from the bottom of the video , and some creators will also be able to embed TikTok Shop storefronts in their profiles . In the future, this will be the only way to purchase products on TikTok .

 

From the outside , TikTok's move is seen as a way to increase sales in TikTok Shop . Data shows that American consumers currently spend about $3 million to $4 million a day on TikTok Shop, up from $500,000 to $1 million in June. TikTok employees expect this figure to exceed $10 million by the end of this year.

 

In contrast, TikTok Shop has been much more successful in Southeast Asia, where it generates around $50 million to $60 million in gross merchandise volume per day. TikTok hopes to increase that figure to around $90 million by the end of the year.

 

It is understood that ByteDance hopes TikTok can replicate the success of Douyin , which had a merchandise volume of more than $200 billion last year. The Information reported that the company hopes TikTok can reach similar levels by 2028.

 

Although TikTok's e-commerce business is still in its early stages in the United States , the app has already had a significant impact on users' shopping habits . Data shows that the topic of "TikTok made me buy it" has been very popular, and the cumulative number of views of related videos has exceeded 67 billion times.

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