TikTok Shop leads U.S. sales growth, surpassing Shein and Temu #news #latestnews
TikTok Shop, the e-commerce feature of the ByteDance-owned social media giant, has surged ahead of competitors in U.S. sales growth just before recent trade policy shifts.
The popular video app, which introduced in-app shopping to millions of American users in 2023, continued to outperform Shein and Temu in January, according to an analysis of credit and debit card data. Building on its strong 2024 performance, TikTok Shop recorded a remarkable 153% increase in observed sales during the month, compared to 26% for Shein and 28% for Temu.
Market data indicates that TikTok Shop has been gaining more traction from Shein’s customer base than Temu’s. Transactions valued above $25—more aligned with Shein’s pricing—grew by 16 percentage points in January from a year ago, while transactions below $25, Temu’s primary market, saw a seven-percentage-point increase. A significant shift of Shein’s customers toward TikTok Shop has been observed over the past year.
Despite its rapid expansion, TikTok Shop’s future in the U.S. remains uncertain due to the ongoing possibility of a ban if it fails to divest its American operations. Additionally, the platform faces potential challenges from new trade policies, including a 10% tariff on Chinese exports and the possible removal of duty exemptions for small-value parcels.
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