📦 TikTok Shop's Big Win
TikTok Shop is taking over US e-commerce. In January, its sales jumped 153%, beating Shein’s 26% and Temu’s 28%, according to Bloomberg Second Measure. More shoppers are choosing TikTok for purchases over $25, a segment Shein once dominated. The trend has been building since 2024.
📉 Shein's Market Struggles
Shein is losing ground to TikTok. A shift in consumer spending saw TikTok grabbing 16 percentage points more in the $25+ category. Meanwhile, Shein is under pressure to cut its valuation to $30B for a London IPO, signaling tough times ahead.
⚠️ Trade and Policy Risks
Trump’s trade actions could shake things up. A 10% tariff on Chinese exports and possible changes to the ‘de minimis’ rule threaten TikTok Shop, Shein, and Temu. If small-parcel tax exemptions disappear, costs will rise for US shoppers.
🚨 TikTok’s Uncertain Future
TikTok’s fate in the US remains uncertain. A law requiring ByteDance to sell its US business or face a ban took effect on Jan 19. With 170M monthly users, TikTok Shop’s growth could be cut short if regulatory pressure mounts.
Will TikTok Shop survive US trade and policy changes?
