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TikTok Shop’s Expansion Plan Extends to Europe and the Americas
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A simple pastime for some, a shopping app for others – that's what TikTok has become. Besides scrolling through short videos and livestreams, the app has been offering the possibility to shop for a few years now.
TikTok Shop is a function that works directly via the social media app TikTok of the Chinese company ByteDance, Ltd. It has been exclusively developed for the international market, based on the app Douyin. As of April 2024, the app had nearly 1.6 billion users worldwide, making it the fifth most popular social media app in the world. The user base suggests the potential reach of TikTok Shop, but achieving it seems easier said than done.
How TikTok Extended into the eCommerce Market
TikTok Shop began in April 2021 with its first launch into the Indonesian eCommerce market, closely followed by the United Kingdom in September 2021. During 2022, TikTok zoomed in on the SEA market, entering the eCommerce markets of Thailand, Vietnam, Singapore, Philippines, and Malaysia. The region generated 86.1% of the marketplace's US$20 billion GMV in 2023, whereby Thailand and Vietnam are the major contributors to the GMV in 2023 with 25.6% and 20.4%.
But after a successful launch, TikTok Shop faced abrupt changes in the Philippines and Indonesia. Indonesia went so far as to ban the service, while the Philippine government imposed regulations. The reasons range from TikTok Shop threatening to monopolize online shopping to cybersecurity concerns. However, by merging with Tokopedia – aka "Shopedia" – the platform relaunched in the Philippines in 2023.
In the same year, the eCommerce platform started to expand to Western countries – or so it was planned. Only part of the originally planned launches were carried out. While TikTok Shop became available in the United States in September 2023, the European market had to wait. Official reasoning for that development is hard to come by.
Corporate publications attribute delays to strategic factors, possibly related to challenges in SEA. Another thesis might be that the European market requires more investment in infrastructure and operating costs than expected. After several delays, TikTok launched its store in Spain and Ireland last year.
TikTok Shop’s Plan for 2025: The Hope of Rolling Out Globally
Like an octopus, the Chinese company has been spreading its tentacles into new markets – and it appears to have no intention of stopping. This year, TikTok Shop is expected to reach US$75 million in GMV, more than three times the figure recorded in 2023.
For 2025, various rumors about new launches occur on the Internet. For now, it is likely that TikTok Shop further extends its availability in Europe by entering markets such as France, Germany or Italy. A launch in Latin America is also likely, as TikTok Shop started testing its product in Mexico in early 2025 – but all of this remains speculation based on the latest news.
Netizens generally hope for a global app launch, enabling TikTok users to earn money more easily. A current U.S. Supreme Court case on a potential TikTok ban under the "Protecting Americans from Foreign Adversary Controlled Applications Act" could impact this, which would also affect the use of the shop.
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