TikTok Sets Ambitious $17.5 Billion Record For 2024 Featuring A Tenfold Expansion Of Its US e-Commerce Business

The year has started with a bang for many names in the world of tech and TikTok is no exception.

It’s back to work to ByteDance’s successful app which just laid down an ambitious target and plan on how it hopes to achieve a whopping $17.5 billion growth. The latter would be done with proposals targeting the company’s e-commerce ventures based in the US.

For those who might not be aware, the platform is more than just a regular app used for entertainment basis. It’s actually designed to meet entertainment online with the likes of users who enjoy impulse buying.

For instance, if you see something trending or something that you like, you’ll end up purchasing that. So to cater to users’ ever-changing needs, the app has an online store in place that is said to serve as a huge threat to merchandise giant Amazon.

The company was seen discussing this initiative at their internal meetings and while nothing is final with plans changing as we speak, it’s going to be interesting how the whole strategy rolls out and comes into place.

It would not be wrong to mention how the target is super ambitious and it means serious competition for big arch-rivals in the industry like Amazon, Shein, and Temu. The former and the latter have been making headwaves among the youth in the US.

Unlike the firm’s rivals, TikTok has reportedly been relying on its social media audience and the hype garnered by viral content to entice buyers to come forward and make the right purchase.

In the past year, we saw social media giant TikTok get on track to reach its $20 billion goal in terms of gross merchandise. The majority of the success was related to the Southeast Asia market which gave rise to the majority of sales garnered via the platform.

Now, the firm is on the rise to attain sales expansion across the American and Latin American markets. These locations have been targets for the company for a while now in terms of kickstarting e-commerce as confirmed by insiders family with the matter.

But TikTok did explain through a recently published blog post how the estimates generated about the company by Bloomberg are not accurate.

ByteDance was transformed into the world leader after it was first founded ten years back, attaining massive revenue worth $200 billion. This is all thanks to how leading apps from the firm like Douyin and TikTok grew massively as users enjoyed viral content and the entertainment it provided them.

Meanwhile, TikTok Shop soon turned into the world’s biggest growing rollouts to be launched recently. Now, the drive to get more revenue is beyond the reliance on social media ads, even though the latter does make up a huge chunk of its earnings.

Just last year, the company’s overall revenue increased by a whopping 30%, hitting the $110 billion mark in no time. This outpaced the growth estimated of so many established firms such as Meta Platforms Inc. and Tencent Holdings.

TikTok Shop allows users to purchase things while they are scrolling online via their feed for short-form posts, live streams, and more on the main platform. The goal is to try and motivate users to use this platform for purchases as compared to classics that have been in place for years like Amazon and Sea Ltd.

This format is created with the hopes of bringing the best of product discovery with easy buying. Both these have assisted Douying already in making its mark in the industry, especially during the pandemic as a lot of users spent time online.
ByteDance’s goal right now is linked to exporting e-commerce plans around the globe. For the US, TikTok is now giving free shipping benefits and other incentives for influencers who engage in makeup, apparel, gadgets, and more through their videos.

In November, a whopping 5 million American customers purchased goods through TikTok. While that might not seem a lot, considering how it has 150 million users in the US, it’s still a huge start that the app would welcome with open arms.

Photo: Digital Information World - AIgen

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