ok aims to reach $20 billion in sales of ecommerce

TikTok plans to quadruple the size of its global ecommerce operation, and sell $20 billion worth of merchandise.

ByteDance’s social media app is heavily dependent on the rapid growth of Southeast Asia in order to achieve its ambitious target. According to Bloomberg, TikTok hopes to boost sales also in the U.S.

Why it matters: According to data.ai, TikTok was the app with the highest spend in the U.S.A., UK France, Germany, and Indonesia during the first quarter 2023. Advertisers could reach an enormous audience through the app, and also gain access to a more receptive consumer base, which would result in a higher conversion rate.

How Does It Work? TikTok Shop displays ads on its main social media application while users scroll through an endless feed of video clips and streams. The model, which combines both entertainment and impulse purchases, has helped Douyin, TikTok’s sister application, establish itself as one of the leading ecommerce players in China. It hopes to replicate this success in the U.S.

Why. The revenue from TikTok’s advertising business has been declining due to the global slowdown in ad purchases. The app has decided to focus its efforts instead on the $17 trillion ecommerce industry as its main revenue generator.

Is TikTok illegal in the U.S. Montana will ban TikTok downloading from next year. Other states have proposed similar bills to ban TikTok across the U.S., but President Joe Biden has yet to make a final decision.

TikTok is fighting against a possible U.S. Ban. TikTok, which has 150,000,000 U.S. Users, is taking active steps to prevent this ban. This includes introducing a variety of security measures in response to national security concerns raised American politicians. It gives partners such as Oracle Corp., the right to review their technology. They also cordon off American TikTokers data.

What TikTok said TikTok declined to comment on the ecommerce plans. The social media released a statement regarding its future in the U.S.

• “A US ban of TikTok would be a ban on exporting American culture and values around the world to the billions who use our service.” We are disappointed that this piece of rushed legislation is moving forward, despite the negative impact it has on millions of Americans who love and use TikTok.

The article TikTok targets 20 billion dollars in ecommerce sales first appeared on Search Engine land.