SEA driving $20 bn in e-commerce revenue for TikTok
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ByteDance-owned TikTok hopes to more than quadruple the size of its worldwide e-commerce operations to as much as $20 billion in merchandise sales this year, relying on growth in Southeast Asia, Bloomberg News reported on Wednesday, citing people familiar with the matter.
The increase compares to last year’s $4.4 billion in gross merchandise value, representing the worth of total goods sold through its online marketplace TikTok Shop, the report said, adding that the company is betting on markets such as Indonesia.
TikTok’s e-commerce platform lets customers purchase goods through links on the app during live broadcasts.
The development comes as the Chinese-owned company faces scrutiny from governments and regulators because of concerns that China could use the app to harvest user data or advance its interests.
The report said the company is also working to expand its sales in the US and Europe.
Financial Times had last year reported that TikTok is due to enter a partnership with Los Angeles-based TalkShopLive to launch its live shopping platform in North America by outsourcing its operations.
Questions & Answers
Q.Which specific region is TikTok primarily relying on to achieve its e-commerce revenue target?
Which specific region is TikTok primarily relying on to achieve its e-commerce revenue target?
TikTok is heavily relying on growth in Southeast Asia to help achieve its ambitious $20 billion merchandise sales target for this year. Markets like Indonesia are central to this strategy.
Q.How much did TikTok's e-commerce operations generate in gross merchandise value last year?
How much did TikTok's e-commerce operations generate in gross merchandise value last year?
Last year, TikTok's e-commerce operations generated $4.4 billion in gross merchandise value, which represents the total worth of goods sold through its online marketplace, TikTok Shop.
Q.What method does TikTok's e-commerce platform use for customers to buy goods?
What method does TikTok's e-commerce platform use for customers to buy goods?
TikTok's e-commerce platform enables customers to purchase goods directly through links displayed on the app during live broadcasts. This integrates shopping with live content viewing.
Q.Is TikTok planning to expand its e-commerce sales beyond Southeast Asia?
Is TikTok planning to expand its e-commerce sales beyond Southeast Asia?
Yes, the company is also working to expand its sales in the US and Europe. A reported partnership with TalkShopLive is planned to launch its live shopping platform in North America.
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