We’ve known for a while that TikTok has big dreams of monetizing its billion-strong userbase by selling them stuff. But a new report from the Wall Street Journal shows just how big those dreams (allegedly) are.
According to people familiar with the matter, TikTok wants to close out 2023 with a total of $20 billion in retail sales on its platform. That’s up from under $5 billion in sales last year.
How does it intend to accomplish that 300% increase?
By building the TikTok Shop Shopping Center, which WSJ says will sell the kind of clothing and goods, usually manufactured in China, that you can find in questionable digital outlets like Shein and Temu. The Shopping Center will reportedly function like Amazon‘s “Sold by Amazon” program, where TikTok will source third-party products and then handle the sales and shipping logistics itself.
These new details appear to be part of TikTok’s previously announced U.S.-focused retail division. TikTok also runs the overall TikTok Shop, which sells creator-designed and brand-affiliated products.
The Shopping Center will have a user interface that “integrates different channels where users can view and buy goods into one single page,” WSJ reports.
Shoppers using the center will be able to buy third-party items as well as TikTok-produced items.
A TikTok spokesperson told WSJ that TikTok’s top priority with retail is to empower local businesses to build their presence on the platform and within its marketplace.
Airbnb wants in on the creator craze. The company is most recognized for offering hotel…
With the World Cup fast approaching, TikTok is leveraging its position as FIFA's first ever…
Netflix has already been coming after YouTube with its bouquet of creator content signings and…
As microseries take over digital content and Hollywood and YouTube leans ever harder into being…
Most brands would shy away from the idea of a campaign based around a meatball-flavored…
If everything goes according to plan, Minecraft players are about to make more money than…