Heaptalk, Jakarta — In 2024, TikTok Shop recorded a gross merchandise value (GMV) of $50 billion. The platform offers unique shopping experience unlike other e-commerce. “While this figure is still far from major players like Amazon, which is projected to reach $757 billion, TikTok Shop is expected to continue growing,” TikTok stated on Wednesday (12/04).
Nico Le Bourgeois, Head of Operations for TikTok Shop in the U.S., explained that the platform offers a different shopping experience than traditional e-commerce. “You see it, like it, buy it. It’s not about searching. It’s a completely different way of shopping,” he said.
Nico also shared why TikTok Shop is gaining popularity over other e-commerce platforms, one of the reasons being the shopping experience it offers. “Various items, including clothing, food, and sports equipment, are offered. TikTok Shop has become an alternative for sellers to diversify their businesses. Additionally, the platform’s massive user base is another reason sellers prefer TikTok over traditional e-commerce,” he explained.
The shopping platform leverages users’ habit of scrolling through videos on the app. Products appear seamlessly within the For You Page (FYP), resembling regular posts. Users click on the yellow cart to make a purchase without leaving the app or even their feed.
Caila Schwartz, Director of Consumer Insights and Strategy at Salesforce for retail and consumer goods, noted, “Every scroll you make, every other post is a Shop post, so they’re investing heavily in driving conversions within the app.” Caila is optimistic TikTok Shop’s success in challenging traditional e-commerce will continue for years.
