TikTok’s plan to enter e-commerce in the US will cost $500 million by the end of this year,?? ?? according to The Information, citing a person with direct knowledge of the matter. In 2021, the short video platform introduced TikTok Shops, enabling creators and third-party vendors to operate virtual storefronts and sell products within the app. A July 26 report by the Wall Street Journal said that the social platform is creating an inventory to offer made-in-China items to American consumers. To provide a complete service, the company made investments heavily in hiring, building delivery networks, subsidizing merchants, and offering free shipping, The Information wrote. Despite its soaring costs, TikTok Shop is generating around $3 million to $4 million daily in the US, a significant rise from less than $1 million in June, said the report. Additionally, to boost sales on TikTok Shop, the company is considering prohibiting sellers on TikTok Shop from posting links to external e-commerce websites. [The Information]
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