Soon you might be able to shop without leaving the TikTok app.
TikTok is reportedly working on launching an e-commerce business in the U.S. where it will sell made-in-China goods similar to the apps Temu and Shien.
According to The Wall Street Journal, the app plans to make the program available in the United States as early as August. Once available, the program will work similarly to Amazon’s “Sold by Amazon” program, where TikTok will be responsible for the storage and shipment of products and will handle transactions on behalf of Chinese retailers.
The move is part of TikTok’s strategy to diversify its profits into other areas beyond advertising sales. According to unnamed sources that spoke with The Wall Street Journal, the company reportedly plans to only pay merchants once their items have been sold, rather than before, allowing it to return unpopular items.
The company has reportedly poached employees from both Temu and Shien who are working as warehouse and order managers and as professional buyers, who are negotiating the cost of items with retailers.
Some early applicants to TikTok’s sales program have also reportedly been rejected for having items that are too expensive, suggesting that the company is focusing on lower-cost items similar to Temu and other competitors.
TikTok has had several recent run-ins with US regulators over concerns that it puts US users’ personal data at risk. In May, Montana governor Greg Gianforte signed Senate Bill 419 into law in the state, which will ban the use of the app within state lines starting on January 1, 2024. TikTok is also banned on government-issued devices.
This week, TikTok launched text posts. Similar to the way text posting works on Instagram, TikTok users can write messages that will appear on the platform and add music and stickers to the page as well to jazz it up.
