Tik Tok, a top social media app in the United States, is venturing into the e-commerce world to compete with other Chinese apps, PC Mag reports.
The social media giant, owned by Chinese company Byt Dance, will be directly competing with Chinese e-commerce platforms Temu and Shein. It aims to compete over similar price points, eschewing high priced items.
Temu, Shein, and Tik Tok have all been accused of collecting vast amounts of user data. The commercial model is much more driven by algorithm, and display a very aggressive sales model. Goods are produced directly from China, which enables low costs to consumers while also pushing constant sales on a primarily mobile platform.
Tik Tok will also be imitating Amazon in its business model, offering to fulfill sales to smaller producers, from warehousing to shipping in exchange for a large cut. The company also intends on only paying sellers when their products actually ship, removing the risk of overstocking goods.
Amazon is currently facing serious scrutiny by federal regulators for its business practises. Tik Tok’s attempt to generate revenue beyond advertising could help grow its profits, but will most likely put it in the sights of Congressional and administrative actions. A Senate bill to ban the app is already in the works.
