TikTok has another big move! Officially announce the US fully managed e-commerce business!

TikTok Shop is finally going to open its cross-border business in the United States to sellers in China, and this time they choose the hottest full-hosting mode and face Temu head-on.

According to reports, TikTok Shop plans to launch the full hosting mode in August this year to compete with SHEIN and Temu and enter a new stage of development.

Last year, TikTok Shop only opened small store services to local sellers in the United States, and its performance was very mediocre. At the same time, Temu has risen rapidly in the American market, surpassing Amazon to become the most downloaded shopping application in the United States. The rise of Temu and SHEIN seems to make TikTok feel the pressure that the dividend period is coming to an end.

However, the success of competitors also gave TikTok some inspiration. Last year, Temu and SHEIN successively launched the full hosting mode, and proved the rationality of this operation mode through rapid growth.

According to reports, TikTok Shop will be responsible for almost all operational links except supply, including warehousing and transportation, marketing, trading, logistics and after-sales service. At present, the product categories covered by this model include clothes, electronic products and kitchen supplies.

Previously, TikTok, which started as a short video platform, was also actively deploying overseas e-commerce. It first chose Southeast Asia as the pilot area of TikTok Shop, and then cautiously entered the American market.

TikTok is cautious about the American market, probably because the market has become saturated and the logistics cost has risen sharply in recent years. According to the data released by Statista digital market in 2022, it is predicted that the e-commerce market in the United States will continue to expand in the next few years, but the compound annual growth rate will drop from 30% in 2020 to 7%, and the growth rate will obviously slow down.

The US cross-border e-commerce market will usher in another player who is not short of money. In addition to throwing money at people, TikTok also provides a lot of subsidies to sellers and buyers, including paying freight to sellers, reducing commissions and issuing discount coupons to buyers.

TikTok has set a GMV target of $20 billion for its global e-commerce business in 2023, of which the GMV target for the US market has not been announced. Judging from the current momentum, TikTok is determined. When Temu, SHEIN and TikTok Shop all officially launch the full hosting mode in the American market, the competition will become more intense, which will be good news for the merchants who have been suffering from Temu and SHEIN for a long time.

TikTok has another big move! Officially announce the US fully managed e-commerce business!

TikTok Shop is finally going to open its cross-border business in the United States to sellers in China, and this time they choose the hottest full-hosting mode and face Temu head-on.

According to reports, TikTok Shop plans to launch the full hosting mode in August this year to compete with SHEIN and Temu and enter a new stage of development.

Last year, TikTok Shop only opened small store services to local sellers in the United States, and its performance was very mediocre. At the same time, Temu has risen rapidly in the American market, surpassing Amazon to become the most downloaded shopping application in the United States. The rise of Temu and SHEIN seems to make TikTok feel the pressure that the dividend period is coming to an end.

However, the success of competitors also gave TikTok some inspiration. Last year, Temu and SHEIN successively launched the full hosting mode, and proved the rationality of this operation mode through rapid growth.

According to reports, TikTok Shop will be responsible for almost all operational links except supply, including warehousing and transportation, marketing, trading, logistics and after-sales service. At present, the product categories covered by this model include clothes, electronic products and kitchen supplies.

Previously, TikTok, which started as a short video platform, was also actively deploying overseas e-commerce. It first chose Southeast Asia as the pilot area of TikTok Shop, and then cautiously entered the American market.

TikTok is cautious about the American market, probably because the market has become saturated and the logistics cost has risen sharply in recent years. According to the data released by Statista digital market in 2022, it is predicted that the e-commerce market in the United States will continue to expand in the next few years, but the compound annual growth rate will drop from 30% in 2020 to 7%, and the growth rate will obviously slow down.

The US cross-border e-commerce market will usher in another player who is not short of money. In addition to throwing money at people, TikTok also provides a lot of subsidies to sellers and buyers, including paying freight to sellers, reducing commissions and issuing discount coupons to buyers.

TikTok has set a GMV target of $20 billion for its global e-commerce business in 2023, of which the GMV target for the US market has not been announced. Judging from the current momentum, TikTok is determined. When Temu, SHEIN and TikTok Shop all officially launch the full hosting mode in the American market, the competition will become more intense, which will be good news for the merchants who have been suffering from Temu and SHEIN for a long time.