TikTok Shop, the platform’s e-commerce feature, has seen rapid growth, merging social media engagement with a seamless shopping experience. On Black Friday alone, the platform generated over $100 million in sales—three times the amount from the same day last year—showcasing its appeal, particularly among younger generations drawn to the convenience of discovering and purchasing trending products within the app. However, TikTok is grappling with significant challenges: data privacy concerns and national security risks have fueled efforts to ban the app in the United States. This came to a head on January 18th when the platform went temporarily dark across the country, only to restore service less than 24 hours later on January 19th amidst expectations that the ban deadline might be extended with the inauguration of President Trump. While the app remains functional on existing devices, it is no longer available for download in app stores. The uncertainty surrounding this decision not only jeopardizes TikTok’s role as a social media giant but also raises questions about the long-term viability of its burgeoning e-commerce operations.
60% of those who use or browse TikTok Shop have made a purchase on the platform. This number is even higher for Gen Z and Millennials at 77% and 69%, respectively.
Only 18% expected the ban to go forward as expected and 24% anticipated an extension accompanied by further negotiations
The potential security risks of TikTok are not a concern for 41% of respondents
51% of those who use TikTok have not reported a change in their usage amid national security concerns
For brands, TikTok Shop represents a golden opportunity to capitalize on the seamless integration of social engagement and commerce. The platform’s ability to turn viral trends into immediate purchasing decisions has positioned it as a powerful tool for reaching younger, digitally native consumers. However, the looming threat of a U.S. ban creates an urgent need for brands to evaluate the sustainability of their reliance on TikTok as a core marketing channel. Acting now to reduce reliance on TikTok will help brands stay connected to their audiences, no matter what the platform’s future holds.
Our Insights team will partner with you to design a study to help you better understand your consumers and their problems, and how your brand can win at retail.