TikTok has been growing exponentially:
- Downloads – TikTok was the leading mobile app worldwide in 2022
- Video Streaming – TikTok was the leading entertainment and video streaming app worldwide in 2022
- Non-Gaming Revenue – TikTok was the highest-grossing non-game app, based on Q1 2022
So it’s obvious that all the e-commerce world is excited about TikTok Shop, the Byte Dance Social Commerce solution launched first in the US in September 2023!
Small business owners are excited and eager to open an additional channel. Particularly in the Beauty and Personal Care verticals.
Time to look at a TikTok / e-commerce integration? Well, maybe.
ByteDance is putting a pause on TikTok Shop’s expansion plans in Europe – this applies to Spain, Germany, Italy, France and Ireland – choosing instead to focus on the U.S. market.
Importantly, TikTok Shop has already been launched in the UK and as per today it’s unclear if the pause above will have consequences on the UK operations.
The size of user bases are similar, TikTok has 102.3 million monthly active users in the US, vs 135.9 million monthly active users in the EU.
The reason for the pause is the amount of potential regulatory hurdles that would very likely arise in Europe. It’s probably better to focus on one market at a time, and the EU regulatory landscape and data protection laws might be more protective / harder to work with than the American ones. The latter could offer a more immediate potential for growth.
Where does the UK sit in this, with it’s post-Brexit regulatory autonomy? Hard to say for now but, as I write this, here in the UK we are going to have an election. This might be a topic of discussion between parties: a less regulated, US free market approach VS a more EU aligned, privacy focused approach.
Not that ByteDance is having it easy in the US.
You might have heard of the USA is threatening to ban TikTok if the company dosen’t decouple from the Chinese Communist Party. Hence ByteDance’s move of preparing a US copy of the app’s core algorithm, according to Reuters.
TikTok’s European life might get even harder than in the USA, so EU merchants and users will need to wait a bit longer to be able to take advantage of TikTok Shop.
UPDATE – 21 August 2024
In October, according to Bloomberg, TikTok will indeed launch its Shop feature in Ireland and Spain, and in the rest of the EU in 2025.
Also check our latest article about the increase of Sellers Fees for the UK market: TikTok Seller Fees in The UK.
