TikTok is angling to amp up its e-commerce sector in 2024. The ByteDance-owned video app is aiming to increase its e-commerce business “tenfold,” according to Business of Fashion, which cited people familiar with the matter.
For TikTok, that would reportedly equate to about $17.5 billion USD in sales. The 2024 goals for the TikTo Shop on the US version of the app were recently discussed in internal business meetings, Business of Fashion reported. Those goals, however, are subject to change throughout the year.
Seemingly, as part of that effort, TikTok announced on Wednesday that it would be quadrupling its seller fees. Currently, TikTok takes just 2% of sales in the US. That cut will be increased to 6% in April and then once again raised to 8% come July. The fee is still relatively low in comparison to the 15% Amazon takes from most sellers.
It appears that TikTok is attempting to place itself in competition with more established fast fashion retailers such as Temu and Shein, both of which are also based in China. As it continues to market the TikTok Shop, sellers may be drawn to pivot from Amazon due to the comparably lower fees.
