Javier Lacort
Senior WriterI write long-form content at Xataka about the intersection between technology, business and society. I also host the daily Spanish podcast Loop infinito (Infinite Loop), where we analyze Apple news and put it into perspective.
In just one year, TikTok has achieved what seemed impossible: surpassing Shein and Temu in U.S. sales growth. According to Bloomberg, which cites data from Second Measure, TikTok Shop has cemented itself as the new Chinese e-commerce leader.
In January, TikTok’s sales surged 153%, far outpacing Shein’s 26% and Temu’s 28%.
Between the lines. TikTok Shop is gaining more market share from Shein than from Temu. For purchases over $25, it has gained 16 percentage points, compared to just 7 points for purchases under $25.
In short, TikTok is proving more successful at selling mid-priced products than bargain-priced ones.
The threats. Several factors could challenge TikTok’s rise:
- Tariffs: Trump’s trade policy includes a 10% tariff on Chinese imports.
- Tax exemption: The possible removal of duty-free status for low-value packages.
- Regulatory risk: TikTok faces a potential U.S. ban if it doesn’t sell its American business.
The contrast. As TikTok Shop thrives, its competitors struggle:
- Shein is negotiating a London IPO at a sharply reduced $30 billion valuation.
- Both Shein and Temu are scrambling to adjust to the potential loss of tariff exemptions.
- Amazon recently launched a discount store to compete in this space.
In perspective. With 170 million monthly active users in the U.S., TikTok has proven that its ability to monetize goes far beyond advertising. It has transformed entertainment into a highly effective sales engine—one that even threatens Amazon.
→ The true disruption of TikTok Shop isn’t just its rapid growth—it’s how it has erased the line between entertainment and commerce.
→ It’s not selling products. It’s selling instant gratification wrapped in viral videos. And that’s more powerful than any discount.
Image | Olivier Bergeron (Unsplash)
Related | Private TikTok Viewers: A Breakdown of What They Are and the Dangers of Using Them
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