Report: TikTok Plans to Quadruple Its eCommerce Network

TikTok is reportedly looking to Southeast Asia to massively expand its eCommerce business.

The Chinese social media platform aims to grow its eCommerce sales from $4.4 billion in gross merchandise value to $20 billion, Bloomberg News reported Wednesday (June 7), citing sources familiar with the matter.

The report says the company is banking on markets like Indonesia, where influencer videos are popular with consumers. The sources say TikTok is also hoping to expand its American and European sales, although these markets would account for a smaller fraction of its goal.

PYMNTS has reached out to TikTok for comment but has not yet received a reply.

As Bloomberg notes, expanding its eCommerce business in the U.S. might seem like an uphill battle, considering threats from Washington to ban the app over concerns about national security. At the same time, the report says, building ties with American brands could give TikTok allies as it battles U.S. politicians and courts.

And as PYMNTS has reported, there is some evidence that merchants haven’t been scared off by the idea of a TikTok ban.

While TikTok was reportedly having trouble attracting U.S. merchants to its platform, businesses haven’t shunned it completely; many small- to medium-sized businesses (SMBs) have turned to TikTok — as they have with other social media platforms — to find potential shoppers.

“In fact, more than half of small businesses that have utilized TikTok report a significant improvement in their overall marketing performance, with 78% reporting a favorable return on investment (ROI) from their TikTok advertisements,” PYMNTS wrote in March.

Meanwhile ad spending has reportedly continued to grow on the platform, despite threats of the ban. TikTok CEO Shou Zi Chew spent hours testifying before Congress in March, fielding questions about data privacy, online safety and the company’s potential ties to the Communist Party in China.

PYMNTS has written that banning the platform would hurt brands, retailers and influencers who have come to depend on TikTok to drive sales. In addition, a number of companies have invested heavily in generating TikTok content to entice younger consumers.

Meanwhile, recent research by PYMNTS shows TikTok will have a wealth of opportunity if it does decide to continue tackling the U.S. eCommerce market.

More than 25% of non-grocery retail purchases already occur online, and our study found that 30% of consumers said they are very or extremely likely to increase how much they shop for retail items online in the next year.