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TikTok Shopβs growth is rapid but still lags behind Amazon π
πSources: bacaiyunΒ Β theinvestorΒ Β cube.asiaΒ Β practicalecommerceΒ Β Β Β
Global GMV for TikTok Shop is projected to hit $50B in 2024, up 150% YoY, but Amazon remains dominant at $700B+. TikTok Shopβs rise is fueled by Southeast Asia and the U.S.
π TikTok Shop's GMV skyrockets
TikTok Shopβs GMV surged from $1B in 2021 to an estimated $50B in 2024, a 50x increase. The U.S. is set to contribute $17.5B, while Southeast Asia remains its largest market at $23.8B. Amazon, however, dwarfs this with $700B+ in GMV, making TikTokβs share just 7% of Amazonβs e-commerce dominance.
β© Outpacing Shopee and Lazada
TikTok Shop crossed $4B GMV in Southeast Asia within two years, beating Shopee and Lazada. Shopee took three years, while Lazada needed five. This rapid growth is driven by short-form video engagement and impulse-driven shopping. The platform has quickly become the biggest challenger in the social commerce space.
π U.S. TikTok Shop sees strong momentum
Since its U.S. launch in September 2023, TikTok Shop sales have surged from $85M to $600M+ monthly by mid-2024. Beauty and fashion dominate sales, with the average order value at $35. Influencer-driven marketing and in-app purchases continue fueling its momentum, despite regulatory uncertainty in the U.S.
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