The WSJ reports that Bytedance, the Chinese parent company of TikTok, has postponed the launch of its U.S. shopping platform, though the company has since denied the report.
The alleged delay, which would push back the launch from early spring to June or later, comes amid mounting pressure in Washington, including some calls to ban TikTok in the U.S.
- In November, TikTok began testing its e-commerce feature, TikTok Shop, in the U.S., allowing users to shop within the app without leaving the platform.
- However, concerns about the app's future in the U.S. may be preventing sellers from joining the shopping platform, according to the WSJ.
- TikTok has reportedly struggled to draw in more merchants, which forced it to delay an expanded test until March.
- That same month, TikTok reported having 150 million monthly active users in the U.S., up from 100 million in 2020.
- ByteDance has been venturing into e-commerce, with its Chinese Douyin app recording $208B in consumer spending last year, up 76% from 2021.
- The company is eyeing an expansion of its e-commerce activities in several countries including the U.S., Brazil, Spain, and Australia.