TikTok halts shopping platform launch

 

TikTok delayed the launch of its U.S. shopping platform over fears of being banned.  The move comes after TikTok CEO Shou Zi Chew testified before Congress in March and answered questions about online privacy and TikTok's ties to Beijing. TikTok's China-based owner ByteDance delayed the opening of TikTok Shop until June at the earliest. The pause may be extended further due to merchants' worries about the U.S. banning TikTok. ByteDance is also concerned about the muted interest in live-stream e-commerce in the U.S. market. TikTok told PYMNTS that it did not delay the rollout but instead moved its test platform "from alpha to beta in April 2023 in order to allow for more merchants to join in our continued test of TikTok Shop." Small- to medium-sized businesses have continued to use TikTok to reach potential shoppers despite threats of a U.S. ban.