Hajra Naz
TikTok’s push into in-app shopping has shown signs of traction. However, it’s moving too slowly for company expectations. As a result, TikTok just carried out its third round of layoffs in its U.S. TikTok Shop division. Bloomberg first reported on the cuts, which follow the platform’s failure to hit its 2024 performance targets, clearly significant ones.
Growth Metrics Tell a Mixed Story
TikTok has regularly highlighted its growing U.S. sales. For instance, sales on Black Friday last year reportedly tripled. And for the full year 2024, TikTok recorded a total gross merchandise value (GMV) of approximately $30 billion, a notable jump over 2023.
Yet, that wasn’t meeting the mark. TikTok’s parent, ByteDance, is pushing aggressively to replicate this momentum internationally, especially after long-running success with in-stream shopping in China.
Looking to China for Inspiration
China’s version of TikTok, called Douyin, has exploded into a shopping powerhouse. In 2024, Douyin posted $490 billion in GMV, growing about 30% year-over-year. A large chunk of that came from live-stream shopping, where products are sold during video broadcasts. With such enormous domestic success, ByteDance sees a blueprint worth replicating globally.
TikTok Pushes into New Markets
To reach that goal, TikTok continues expanding its in-app shopping tools. The latest addition was TikTok Shop in Japan, now the 17th market with access. With more acceptance of live-stream shopping across Asia, the company expects Japan to be one of its early international in-stream success stories.
East vs. West: Cultural Shopping Differences
There’s a cultural split in how users engage with shopping and video:
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Asian markets tend to embrace multifunctional platforms. One app can be a place to shop, chat, stream videos, and pay—all in one package.
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Western markets, by contrast, keep activities separate: people shop on Amazon, scroll through Facebook or Instagram, and treat TikTok mainly as a video platform.
That separation makes in-app shopping adoption slower in the West, even as TikTok works to change that mindset.
What It All Means
TikTok is investing heavily in e-commerce and feels it’s running out of time. Layoffs in its U.S. Shop division reflect the quick pace ByteDance expects. Meanwhile, overseas markets like Japan and China show what’s possible if TikTok can crack the cultural code.
Whether TikTok can convert its social media momentum into sustained shopping demand remains uncertain. But one thing is clear: you’ll see more in-app shopping tools, more regional launches, and more internal restructuring as the company seeks its next breakthrough.
