Summary:
- According to a recent report from Emarketer, TikTok is significantly contributing to the growth of social commerce, with TikTok Shop projected to account for nearly 20% of this market by 2025.
- Sales from TikTok Shop are expected to exceed $20 billion by 2026 and are forecasted to surpass $30 billion by 2028. Projections indicate that by 2026, half of all social shoppers in the U.S. will make purchases through TikTok.
- While social commerce is anticipated to exceed $87 billion this year, it is expected to cross the $100 billion threshold in 2026 and approach $119 billion by 2027, as reported.
Analysis:
In just over two years since its debut in the United States, TikTok Shop has emerged as a formidable player in the realm of e-commerce.
According to a report by PartnerCentric, U.S. consumers aged under 60 spent an average of $708 on TikTok Shop in 2024. Notably, the top-selling categories among TikTok shoppers include personal accessories and household goods.
By 2027, it is expected that TikTok Shop’s sales will represent nearly one-quarter of all social commerce transactions in the U.S. The other three-quarters of this market continues to be dominated by established platforms, particularly Facebook Marketplace and Instagram, as highlighted in the Emarketer report.
As TikTok Shop continues its upward trajectory, the broader social commerce landscape is set to expand. By 2028, it is projected that more than half of online shoppers in the U.S. will have made purchases via social media platforms.
This trend is attributed, in part, to the increasing prevalence of shoppable content, which enhances consumer comfort with social commerce, as noted by Rachel Wolff, a retail and e-commerce analyst at Emarketer.
“TikTok’s unique ability to integrate shopping with entertainment is transforming it into a significant e-commerce force,” said Wolff.
“Consumers prioritize price and value this holiday season, but they also crave enjoyable shopping experiences—an itch that TikTok Shop is ideally positioned to satisfy.”
As TikTok grows in influence, it is redefining the manner in which brands connect with their target demographics.
Well-known brands and retailers, such as Amazon, Maybelline, and E.l.f. Cosmetics and Gap have adeptly leveraged the platform to engage and attract shoppers.
To enhance this engagement, TikTok has adopted strategies similar to those of establishments like Amazon, Walmart, and Target by launching exclusive sales events.
Despite its burgeoning status as a preferred destination for browsing and shopping, TikTok aims to transcend traditional mobile usage.
In July, it entered into a partnership with Westfield Malls to extend its advertising and content presence to digital screens in upscale shopping environments.
Collaborations with additional partners have also enabled outreach to screens in vehicles, fitness centers, airports, and shopping malls.
Source link: Retaildive.com.
