• TikTok Shop is now a more popular online retailer than Shein and Sephora among Americans.
• TikTok Shop first launched in September 2023.
• A new consumer trends report found that 45% of surveyed Americans have bought something on TikTok.

TikTok Shop has surpassed retail giants Shein and Sephora in the online battle for US shoppers.

A 2025 consumer trends report by Coefficient Capital and The New Consumer's Dan Frommer analyzed how Americans' spending habits could affect certain brands. The research included 11 surveys of over 3,000 US consumers. The company conducted its most recent survey this month.

TikTok Shop launched in September 2023, making it a relatively new online retailer compared to its peers. However, the consumer trends report said 80% of surveyed Americans who use TikTok at least once a month are aware of TikTok Shop, signaling the retailer's growing reach.

That reach has helped TikTok overtake retailers like Sephora, Shein, and Qurate in US consumer spending for the third financial quarter, according to the trends report.

Sephora and Shein are two popular online retailers in the United States, especially with younger generations like Gen Alpha. Qurate Retail Group owns and operates six retail brands, including QVC. The company sells items online through its brands.

Sephora helped its parent company, LVMH, achieve record-breaking sales in 2023, reaching $10 billion in revenue across North America. Shein made $2 billion in profits that year. Although Qurate's third-quarter earnings report said revenue decreased by 5%, it generated $152 million in operating income.

A March Financial Times report cited three sources who said TikTok had reached $16 billion in sales in the United States. It's unclear how much the TikTok Shop has made since its 2023 launch, but the company said in its 2024 economic report that the app drove $15 billion in revenue for small businesses in the United States.

The consumer trends report said 45% of surveyed Americans purchased "fashion, clothing, and accessories" from TikTok Shop. Beauty and personal care items came second at 44%. Surveyed TikTok users also indicated purchasing electronics, home goods, food, toys, books, and more from the online shop.

TikTok has led the growth of social media shopping apps in the United States in recent years. TikTok's Chinese parent company, ByteDance, likely wants to replicate the success of its sister app in China, Douyin, which drives hundreds of billions in sales annually, often through influencer livestreams.

Despite its rising popularity with content creators and shoppers alike, TikTok faces a potential federal ban in the United States next month.

In April, Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act. The law gives ByteDance until January 19 to divest from TikTok or face a ban in the United States. On December 6, a federal appeals court upheld the ban as constitutional.

Lawmakers worry that the Chinese government could compel the app's Chinese ownership to manipulate content for propaganda or leverage the personal data of millions of Americans.

Ahead of the potential ban, TikTok launched a "limited-time offer " promotion this week, allowing users to earn $50 in TikTok Shop credits to recruit a new user. Users can earn up to $350 in shop credits in total.

Representatives for TikTok, Shein, Sephora, and Qurate did not respond to a request for comment from Business Insider.

• Retail sites like Amazon are taking action against Luigi Mangione-inspired merchandise.
• eBay prohibits items that glorify violence, but it doesn't ban the phrase "Deny. Defend. Depose."
• Mangione has emerged as a folk hero of sorts in certain corners of the internet.

Retail platforms like Amazon, Etsy, and eBay are slapping down merch listings that glorify Luigi Mangione — the suspect in the killing of UnitedHealthcare CEO Brian Thompson.

In the wake of Thompson's murder, some people on social media were unsympathetic, given their grievances with the American healthcare system. And after Mangione was arrested, he emerged as something of a folk hero — and heartthrob — in certain corners of the internet.

That sentiment soon made its way into the merch space. On Etsy, products were being offered with Mangione's likeness and the phrase "Deny, Defend, Depose," BI sister site Morning Brew reported.

Those words were etched onto bullet shell casings found at the scene of the killing, police said — and are similar to a 2010 book scrutinizing the insurance industry titled "Delay Deny Defend."

Many of the Mangione-themed items offered for sale came from drop shippers, Morning Brew reported — or sellers who print products on-demand after they're ordered. Some of the items included cups, sweatshirts, and hats, The Washington Post said.

Morning Brew reported that similar items were for sale on sites like RedBubble and TikTok Shop, while Amazon and Etsy were taking down many listings that referenced Mangione or the shooting.

An Amazon spokesperson told Business Insider that the products in question were removed because they violated Amazon's rules against offensive and controversial items.

An eBay spokesperson told BI that items that "glorify or incite violence" are prohibited from its marketplace. That includes items that celebrate the murder of the UnitedHealthcare CEO, the eBay spokesperson said. The company doesn't prohibit the sale of items with the phrase "Deny, Defend, Depose," the spokesperson said.

It appeared some of the platforms were playing a game of cat and mouse with sellers — with various listings still live as of Wednesday.

The eBay spokesperson said the company is "continuing to sweep the marketplace for other prohibited items," including one listing that was still live as of Wednesday — which the spokesperson said was being removed because it featured an image of a gun.

A Redbubble spokesperson told Business Insider in a statement that its "strict community guidelines prohibit, among other things, the glorification or promotion of violence, while still allowing legitimate discussion of current events."

Every design includes a reporting function so that potential violations can be flagged by the community, the spokesperson added.

Etsy and TikTok Shop didn't immediately respond to requests for comment from BI.

• Social shopping finally broke through in the US in 2024, driven by TikTok Shop.
• Companies spent years trying to import social-commerce habits from Asia, with varied success.
• The US market is still dominated by Amazon, but social apps and influencers are key players.

Social platforms have spent years trying to get Americans to buy stuff from videos, posts, and livestreams. That bet seems to finally be paying off.

The 2024 holiday sales from social media — driven by TikTok Shop and influencer affiliates, among other factors — show how far social shopping has come in the past five years.

TikTok Shop, which had its official wide launch in the US in September 2023, reported $100 million in single-day US sales on Black Friday this year, triple what it drove in 2023. Americans viewed over 30,000 TikTok shopping livestreams that day, with one creator picking up $2 million in sales from a single session.

The company's holiday gold rush didn't come easily. TikTok and its owner ByteDance have spent years investing in its e-commerce business, even as competitors like Instagram have pulled back on shopping features.

TikTok began testing out social-commerce features in the US as early as 2020 when it let creators add shopping buttons to some videos. It began rolling out its more advanced product, Shop, in the US to a group of merchants and agencies in November 2022 after testing in other markets like the UK. It's since built out its own order fulfillment program, enlisted hundreds of outside partners to train merchants and creators on how to sell in-app, and recently began connecting creators with manufacturers to build their own products.

TikTok likely wants to replicate some of the success of its sister app in China, Douyin, which drives hundreds of billions in sales annually, often via influencer livestreams. While TikTok's numbers are comparatively small, the company has made a ton of progress this year, social-commerce executives told Business Insider.

Max Benator, the CEO of the social-shopping agency Orca, said he expects to hit just under $100 million in total gross merchandise value, or GMV, in 2024 across the company's clients, a roughly 10X increase from 2023.

"We've now been on TikTok Shop since the very beginning, and we've seen successes gradually and consistently increase month over month," Benator told BI. "The numbers are serious."

Outlandish, a TikTok Shop agency that recently opened a livestreaming hub in Santa Monica, said its Shop sellers earned $48 million in US sales in November, up from $20 million in October. The company is betting that live shopping will continue to gain traction in the US, as it has in more mature social-commerce markets like China.

"It's QVC on steroids," Outlandish's founder and CEO William August told BI.

Affiliate marketing from influencers and others drove a fifth of Cyber Monday sales revenue

TikTok Shop's holiday performance was impressive for an e-commerce newcomer, but its business remains a small piece of overall holiday sales.

Total online Black Friday sales in the US hit $10.8 billion this year, up about 10% from 2023, according to Adobe Analytics. Online sales in the US between November 1 and December 2 reached $131.5 billion, and  hit $13.3 billion on Cyber Monday alone.

Retailers like Amazon, Walmart, and Target continue to dominate much of online spending, but social-media influencers and other affiliate marketers are playing an increasingly important role in driving purchases on those platforms.

About 20% of US e-commerce revenue on Cyber Monday arrived via affiliate or other promotional links, a 7% year-over-year increase from 2023, per Adobe Analytics.

Outside TikTok and affiliate marketing, other influencer-focused platforms are also reporting meaningful sales volume this year. Live shopping platform Whatnot said in November that it had surpassed $2 billion in year-to-date livestream sales, for example.

TikTok and its partners are proving that US consumers are willing to adjust shopping habits

When TikTok and competitors like Instagram and YouTube first began testing e-commerce features in the US, not all consumers were psyched.

Social media is for entertainment, not shopping, some said. Amazon and other big retailers have long dominated e-commerce, and changing consumer habits is a challenge. Instagram backpedaled on its shopping product last year, removing its Shop tab in February 2023 and eventually partnering with Amazon for its in-app shopping strategy.

But TikTok kept charging forward with social shopping. It enlisted an army of agency partners and livestream coaches to accelerate the adoption of Shop and flooded its feed with videos of creators hawking goods in exchange for a commission.

TikTok's owner ByteDance was likely behind the company's determination to make social shopping work as it sought to bring Douyin's success to TikTok.

Now that live shopping and social commerce are beginning to take hold in the US, TikTok and ByteDance's push into the category is paying off (though it all could fall apart if TikTok ends up being banned in January due to a divest-or-ban law).

"This is the year that we've seen the real beginning of live shopping in America," said Julian Reis, the CEO of SuperOrdinary, a social-commerce agency that's worked with TikTok and Douyin. "With TikTok, we've had the first real foray into building an ecosystem that ties in entertainment and live shopping together, and a full-service ecosystem that brings in the creators, the affiliates, the products, the brands altogether."

• TikTok Shop saw over $100 million in single-day sales on Black Friday, a spokesperson told BI.
• Creators and sellers hosted over 30,000 livestream sessions during the day.
• TikTok has been pushing e-commerce this year as it tries to break into a market dominated by Amazon.

TikTok's second Black Friday in the US shows it's starting to drive real holiday spending, even though it remains a small fraction of overall e-commerce activity.

On Friday, the company drove over $100 million in US sales on its e-commerce platform Shop, a company spokesperson told Business Insider. Shoppers tuned into over 30,000 live-selling sessions on the app that day, with the content creator and Canvas Beauty founder Stormi Steele earning $2 million in a single livestream, the spokesperson said. A representative for Canvas Beauty confirmed the livestream figure and said the company sold over 100,000 products and grossed more than $3 million across all sales during Black Friday.

Live shopping is a major focus at TikTok. The company has been pushing its sellers and creators to test out the format, which drives billions in sales in more established social-shopping markets like China.

Nico Le Bourgeois, TikTok Shop's head of US operations, told BI in late October that he hoped live shopping would break through this holiday season.

"We want people to discover new products," Le Bourgeois said. "To be surprised. To feel like shopping can be different. And as a part of that, if we can have many customers shop in live and realize that this is really cool, I think we will have done a good job."

The most popular Black Friday product categories were fashion, beauty, and home, the TikTok spokesperson said. Other top sellers on TikTok Shop's Black Friday were Tarte Cosmetics and lifestyle retailer Miniso, they added.

Overall, TikTok's sales were a small piece of the holiday shopping pie. Black Friday sales in the US hit $10.8 billion on Friday, a roughly 10% increase from 2023, according to Adobe Analytics.

Last year, across the full US holiday shopping season, Amazon drove around $104 billion in US holiday sales, while Walmart hit about $20 billion in US e-commerce sales during that holiday period, according to eMarketer estimates.

TikTok Shop is still a relative newcomer in the e-commerce world, having launched in the US in the fall of 2023. Established retailers like Amazon, Walmart, and Target, which offered millions of holiday deals throughout November, likely drove a good chunk of overall US Black Friday activity.

Still, TikTok has been gaining traction in the US in recent months, particularly among young adults. The company invested heavily in its product over the last two years. Its parent company, ByteDance, likely hopes to replicate the social-shopping success of TikTok's sister app in China, Douyin, which drives billions in annual sales.

TikTok did not release US Black Friday sales data last year. But sellers told BI that some smaller and midsize brands saw big returns during the holiday event, while some larger brands were hesitant to test out a new platform during a critical earnings period.

In 2024, TikTok appears to have drawn in a wider variety of sellers to join its holiday push, which runs between November 13 and 28. TikTok Shop featured holiday discounts from brands like electronics maker Phillips, Fenty Beauty, and Maybelline NY, for example.

Ultimately, TikTok's e-commerce momentum could be abruptly cut off if the company ends up being sold or removed from app stores in early 2024 due to a law set by Congress that comes due in January.