TikTok is gearing up to launch an e-commerce platform in the U.S. in early August,

 

TikTok is gearing up to launch an e-commerce platform in the U.S. in early August, competing with Chinese shopping apps Shein and Temu, according to The Wall Street Journal.  TikTok's platform will operate similarly to "Sold by Amazon," storing and shipping mostly Chinese goods such as clothing, electronics, and gadgets. The "TikTok Shop Shopping Center" combines various channels on a single page for users to browse and purchase goods. Users will be able to shop and leave reviews via a dedicated e-commerce tab within the TikTok app. TikTok will handle storage and shipping for manufacturers and merchants in China, along with marketing, transactions, and after-sale services. The company aims to avoid holding inventory for unpopular items and will only pay Chinese suppliers once they find U.S. buyers. TikTok's e-commerce strategy seeks to diversify beyond ad sales and increase revenue from its video app. The company aims to quadruple its gross merchandise value to $20B this year, up from $5B in 2022.