With the fate of TikTok still hanging in the balance, so is the profit made by the users and businesses who have helped build TikTok’s popular e-commerce arm.
After first launching in September of 2023, TikTok Shop quickly became a fast and easy way for users and creators to buy and sell products through the app. Since then, the number of people who shop on the app each month has nearly tripled.
TikTok Shop sells a wide variety of products, such as clothing, beauty and skin care products, accessories, shoes, home decor, tech accessories and more.
In July 2024, monthly gross sales exceeded $1 billion, contributing to TikTok’s goal of reaching $17.5 billion in gross sales for TikTok Shop 2024.
TikTok Shop is the ultimate “shoppertainment” experience, said Morgan Bryant, Ph.D., assistant professor of marketing.
“Users can discover products while scrolling through entertaining videos, reducing friction in the shopping journey,” Bryant said.
For Olga Lopez ’27, seeing others post about certain products and checking the reviews before buying is what influences her purchasing decisions on the app. Almost every item she has bought was influenced by seeing the product through another user’s video or review.
“I never want to buy anything without a review because I don’t want to get something that’s not worth it,” Lopez said. “People are always making good videos, and it helps me visualize it.”
TikTok distinguishes itself from other social media platforms like Facebook, Instagram and Snapchat by integrating entertainment with advertising — a concept also known as “advertainment,” said Natalie Wood, Ph.D., associate dean and professor of marketing.
“Engaging with TikTok content initiates a feedback loop where the algorithm curates similar material, leading to repeated exposure to specific products,” Wood said. “This repetition fosters a perception of popularity and desirability, encouraging users to consider purchases.”
Bryant said it also adds to TikTok’s sense of community by encouraging users to create and then share content about what they buy.
“This user-generated content acts as social proof and promotes virality,” Bryant said.
A few months after TikTok Shop launched, users began being able to earn commission by reviewing products they bought by registering as an affiliate in the Affiliate Program. While age and follower count are considered before users are accepted into the program, many ordinary users can use their affiliate status to grow their accounts while also making money as a side hustle. This is different from the often full-time job of TikTok influencers, whose main strategy is to work directly with brands.
One of TikTok Shop’s most valued attributes is the price of most of its products. Many content creators who advertise products emphasize the affordability and convenience of buying from TikTok Shop. Creators with a larger following can influence or use clever selling strategies to convince their viewers that they “need” the product.
Esma Uysaler ’28 was influenced into buying from TikTok Shop through ads and word of mouth. Uysaler has bought items such as clothes and accessories, spending no more than $15 for a single item.
“I was influenced through ads as I scrolled through TikTok as well as hearing my friends talk about what they have bought for so cheap,” Uysaler said.
