1. Research Background
The United States is one of TikTok’s more important markets. In 2021 and 2022, TikTok was the most downloaded application in the United States. According to TikTok’s official news, as of March 2023, the number of monthly active users in the United States has reached 150 million, which is close to half of the U.S. population.
Since November last year, TikTok Shop has opened some places for entry in the United States, and officially closed the “semi-closed loop” business in August 2023 (that is, merchants hang external links on TikTok and guide them to independent stations for transactions), paving the way for the smooth development of closed-loop e-commerce business. On September 12, 2023, U.S. time, TikTok’s official website announced that the e-commerce service TikTok Shop (hereinafter referred to as TikTok e-commerce) was officially launched in the United States, marking that TikTok e-commerce has finally opened up a larger user market. On October 9, the cross-border merchant self-operation model of TikTok Shop officially opened the U.S. market, allowing domestic entities and U.S. entities of Chinese legal persons to enter. This means that after the launch of “local stores” (local merchant self-operation model) and “full trusteeship”, TikTok Shop has further opened its doors in the U.S. station and introduced a wider group of merchants.We have seen the strong growth trend of TikTok in the US market and wrote this “TikTok Shop US Quarterly Development Trend Report”. By deeply mining and interpreting the data of TikTok Shop US from July to September 2023, we can help users to have a deeper understanding of the overall growth and popular categories of the US site, so as to clarify the product selection direction and operation methods.
2. TikTok Shop's U.S. market growth
The market is developing rapidly, with monthly GMV exceeding $100 million
The total number of small stores has exceeded 18,000
Although the qualifications of TikTok Shop in the United States have not yet been fully opened, and Chinese sellers still need a high operating threshold to enter in compliance, the overall growth in the number of small stores is showing a rapid upward trend. As of the end of September, the number of small stores exceeded 18,000. August increased by nearly 100% compared with July, and September increased by 70% compared with August. According to the official platform of TikTok Shop, the United States strengthened risk control in October, and stores that entered through non-compliant channels or operated illegally were banned. However, with the entry of local stores and cross-border big sellers, this number will continue to grow.
The estimated monthly sales exceeded $100 million, an increase of nearly 300%
TikTok Shop’s sales in the United States grew rapidly in Q3. Estimated sales in July exceeded US$27 million. August was the month with the fastest sales growth, up nearly 250% from July, with sales reaching US$68 million. Sales in September increased by approximately 47% from August, with the monthly total exceeding US$100 million, marking a critical stage in the development of TikTok Shop in the United States.
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3. TikTok Shop’s hot-selling small shops in the United States
Top 10 hot-selling small shops: beauty and personal care and women’s clothing account for 70% overall, with obvious head effect.Female market consumption accounts for a high proportion, and beauty and personal care and women’s clothing are easy to convert on TikTokAmong the top 10 small shops ranked by sales, 7 are small shops of beauty and personal care and women’s clothing, showing the strong consumption power and market potential of the female market.
American local DTC brands and small and medium-sized brands have ushered in explosive growth on TikTok.The sales of the top ten small shops in the past three months are all over 2 million US dollars, of which 6 are over 5 million US dollars, most of which are DTC small and medium-sized brands or white-label product collection stores.
The sales of the head small shops have exceeded 10 million US dollars
The Beachwaver is the only small shop with sales exceeding 10 million US dollars in 3 months, which brings greater imagination space for the development of TikTok’s brand small shops in the United States. The small shop mainly sells hair products and has a DTC independent station and other e-commerce channels.
Hot products drive the overall GMV of small stores
Most of the small stores on the list have achieved an overall increase in sales due to the successful marketing of one or more hot products in the store. For example, the hot-selling products of the three women’s clothing stores on the list are: women’s body shapers, jeans and solid-color women’s clothing items. Wyze (Top 4) mainly sells home cameras; MySmile teeth whitening devices, etc. Therefore, the ability of merchants to select products and create hot products has become more important in TikTok operations.
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