TikTok takes aim at Amazon with planned online store: report

TikTok may debut an online store on the US version of the app next month, according to a report from Semafor, marking an expansion into e-commerce that would position TikTok as a direct competitor to e-commerce juggernauts like Amazon and shopping apps like Temu.

According to Semafor, the store will build on the app’s existing TikTok Shop feature, where third-party brands pay a fee to sell their products. The new store will exist under an e-commerce tab on the TikTok app and will show users products from both the store and TikTok Shop in one place.

A new live-shopping feature has been dubbed “TikTok Shop Shopping Center,” according to a TikTok job posting. The virtual shopping center will serve “as a central hub where users can easily discover promotions…[and] a wider product assortment from across our TikTok Shop merchants recommended through shoppable content,” the posting reads.

The short-form video app is beginning to lay the groundwork for the logistical requirements of such an endeavor, having reportedly partnered with logistics firms to lease warehouses for inventory storage, according to The Information.

What doesn’t kill you: The app’s growth, even in the face of recent political opposition in the US, is no surprise, according to Sorilbran Stone, content marketing coordinator at influencer marketing agency The Shelf. “It’s been three years now that TikTok has been battling in the US alone, just trying to stay alive,” Stone said. “In spite of this, they’ve continually launched different ways to integrate e-commerce into the platform.”

The push into live shopping, which is already popular in many Asian markets, may persuade bigger brands to give it a shot as well, she added.

“The more brands see other large brands doing more [with] TikTok shops…the easier it will be to convince higher-ups who may have a longer history in traditional marketing,” Stone said.“There’s always this balancing act between the traditional marketers within a company and…digital marketers [that] stay on top of industry trends and things that are happening on social.”

$$$: An online store may prove lucrative for the app; last year, TikTok Shop alone brought in $4.4 billion, according to Bloomberg. But TikTok has also proven to be an important marketing tool for its e-commerce competitors. According to SensorTower data released earlier this year, Amazon was also one of the top spenders on TikTok ads in Q1.