In the ever-evolving landscape of online retail, TikTok Shop has emerged as a formidable player, surpassing industry giants like Shein and Sephora in popularity among American consumers. Launched in September 2023, TikTok Shop has quickly gained traction, with a recent consumer trends report revealing that 45% of surveyed Americans have made a purchase on the platform.
The 2025 consumer trends report by Coefficient Capital and The New Consumer’s Dan Frommer sheds light on the shifting preferences of American shoppers and the impact on various retail brands. The report, based on 11 surveys of over 3,000 US consumers, highlights TikTok Shop’s rapid rise to prominence in the online retail space.
Despite being a relatively new player in the market, TikTok Shop has managed to capture the attention of a significant portion of American consumers. The report indicates that 80% of surveyed Americans who use TikTok are aware of TikTok Shop, underscoring the retailer’s growing reach and influence.
This growing reach has translated into tangible success for TikTok Shop, as it has overtaken established retailers like Sephora, Shein, and Qurate in US consumer spending for the third financial quarter. Sephora and Shein, known for their popularity among younger demographics like Gen Alpha, have long been dominant players in the online retail space. Qurate Retail Group, which operates multiple retail brands including QVC, has also been a key player in the industry.
Sephora, a subsidiary of LVMH, achieved record-breaking sales of $10 billion in revenue across North America in 2023, driven largely by in-store sales. Shein, on the other hand, reported $2 billion in profits that year. While Qurate’s third-quarter earnings showed a slight decrease in revenue, the company still generated $152 million in operating income.
A Financial Times report in March revealed that TikTok had reached $16 billion in sales in the United States, indicating the platform’s immense commercial potential. The company’s 2024 economic report further highlighted its impact, stating that TikTok had driven $15 billion in revenue for small businesses in the US.
The consumer trends report also sheds light on the types of products that Americans are purchasing on TikTok Shop. Fashion, clothing, and accessories emerged as the top category, with 45% of surveyed Americans making purchases in this segment. Beauty and personal care items followed closely behind at 44%, indicating a diverse range of products available on the platform.
TikTok’s success in the online retail space can be attributed to its innovative approach to social shopping. The platform has spearheaded the growth of social media shopping apps in the US, drawing inspiration from its sister app in China, Douyin, which generates significant sales through influencer livestreams.
However, TikTok’s future in the US remains uncertain, as the platform faces a potential federal ban next month. The Protecting Americans from Foreign Adversary Controlled Applications Act, passed by Congress in April, gives ByteDance until January 19 to divest from TikTok or risk a ban in the US. Concerns about Chinese government influence and data privacy have fueled the push for the ban.
In response to the looming threat of a ban, TikTok has launched a “limited-time offer” promotion, allowing users to earn shop credits by recruiting new users. This move reflects TikTok’s efforts to retain its user base and continue its growth trajectory in the face of regulatory challenges.
As TikTok Shop continues to gain momentum in the online retail space, it remains to be seen how the platform will navigate the regulatory hurdles and maintain its position as a leading online retailer in the US. With its innovative approach to social shopping and diverse product offerings, TikTok Shop has undoubtedly made a significant impact on the e-commerce landscape, challenging traditional retail giants and reshaping the way Americans shop online.
