Tiktok shop data 2024

2024 TikTok Shop Data: Unveiling the Growth and Potential of Social Commerce

In 2024, TikTok Shop has emerged as a significant player in the e-commerce landscape, leveraging the power of social media to drive sales and reshape the way consumers shop. This article delves into the key data and trends that define TikTok Shop's performance and its impact on the global market.

Revenue and Sales Figures

TikTok Shop's financial performance in 2024 has been impressive. In 2023, TikTok Shops generated $11.09 billion in gross merchandise volume (GMV), with beauty and personal care leading the way, recording $2.49 billion and accounting for 22.5% of the total GMV. Womenswear and underwear followed closely, contributing to the significant revenue stream.

In the US, TikTok Shop's consumer spending has been on the rise. Just two months after its launch in September 2023, it generated $363 million in consumer spending, marking a 72% increase from $260 million in October. Moreover, in the first quarter of 2024, TikTok Shop's market share in Vietnam was 23.2%, with a total of 7.6844 billion products sold, and the product average price was 109,182 Vietnamese 盾.

User Behavior and Shopping Trends

Understanding user behavior is crucial for the success of any e-commerce platform, and TikTok Shop is no exception. In the US, an estimated 37% of TikTok users, which amounts to 55.5 million, made purchases either through links on the app or directly on the platform in 2023. This number is expected to increase by 67% by 2026, reaching 39.5 million social shoppers.

TikTok users are highly susceptible to impulse buying, with more than half (55%) making impulse purchases on the platform in 2022, making it the top social channel for such purchases. Additionally, 71.2% of TikTok users said they have shopped for something when they stumbled across it in their feeds, further emphasizing the platform's ability to drive spontaneous purchases.

Live shopping has also proven to be a powerful tool on TikTok. An Ipsos study revealed that 50% of TikTok users bought something after watching a TikTok Live, and one in five users watch TikTok Live daily, with 62% of that group tuning in every day.

Market Penetration and Geographic Reach

TikTok Shop has expanded its footprint across multiple regions, with significant market penetration in various countries. In the US, there are over 31,000 TikTok Shops, accounting for 11.83% of the total TikTok Shop count worldwide. However, APAC countries dominate the scene, with Indonesia (20.52%), Thailand (18.29%), Vietnam (17.54%), and Malaysia (12.94%) taking the top spots.

In Thailand, TikTok has over 3 million creators and 2.4 million sellers, with 99% of them being local. The platform's popularity in the country has led to increased efforts to enhance its e-commerce capabilities, such as the introduction of the PACE framework by TikTok in 2024. This framework focuses on persona, assortment, content, and empowerment to help brands and stores increase their competitive advantage and sales opportunities.

Product Categories and Popular Items

Certain product categories have emerged as top performers on TikTok Shop. As mentioned earlier, beauty and personal care, as well as womenswear and underwear, have been leading in terms of GMV and the number of shops. In 2024, the US market saw the curling iron become a highly popular item, with its GMV reaching $140 - $190 million in the first week of January, surpassing the GMV of TikTok Shop's other major sites in Southeast Asia.

The Impact of Marketing and Content

TikTok's unique marketing capabilities, driven by its short-form video and live streaming features, have been instrumental in driving sales on TikTok Shop. The platform's personalized algorithm can match products with consumers, enabling a more targeted marketing approach. Brands and merchants can create engaging content to showcase their products, demonstrate their uses, and interact with potential buyers in real-time.

Moreover, the power of community and trends on TikTok cannot be underestimated. 31% of TikTok users buy products to fit in with the community or because everyone is talking about them, highlighting the role of social influence in purchasing decisions.

Future Prospects and Challenges

Looking ahead, TikTok Shop shows great potential for further growth. With its plans to expand its e-commerce operations in the US, such as opening multiple offline live studios in major cities like Los Angeles, TikTok aims to boost its business and reach new heights. The platform's goal of increasing its US e-commerce business tenfold to $175 billion in 2024 demonstrates its ambition and confidence in the market.

However,