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TikTok Shop is now more popular online retailer than Shein and Sephora among Americans.
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TikTok Shop first opened in September 2023.
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A new consumer report found that 45 percent of Americans surveyed have purchased something on TikTok.
TikTok Shop has overtaken retail giants Shein and Sephora in the online battle for US shoppers.
Coefficient Capital’s 2025 consumer report and The New Consumer’s Dan Frommer analyzed how the spending habits of Americans can affect certain brands. The research included 11 surveys of more than 3,000 US consumers. The company conducted its latest survey this month.
TikTok Shop was launched in September 2023, making it a new online retailer compared to its peers. However, a consumer trends report stated that 80% of Americans surveyed who use TikTok at least once a month are familiar with TikTok Shop, indicating the retailer’s reach.
That reach helped TikTok overtake retailers like Sephora, Shein, and Qurate in US consumer spending in the third quarter, according to trends.
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 chains, including QVC. The company sells products 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 that year. Although Qurate’s third-quarter earnings report said revenue was down 5%, it posted $152 million in operating income.
A March report by the Financial Times cited three sources who said TikTok had reached $16 billion in sales in the United States. It is not known how much money TikTok Shop has made since it was founded in 2023, but the company said in its economic report in 2024 that the app has delivered 15 billion dollars in revenue to small businesses in the United States.
A consumer trends report said that 45 percent of Americans surveyed bought “fashion, clothing and accessories” from the TikTok Shop. Beauty and personal care products came in second at 44%. The surveyed TikTok users also reported buying electronics, household goods, food, toys, books, and more from online shops.
TikTok has led the growth of social media shopping apps in the United States in recent years. TikTok’s Chinese parent company, ByteDance, may want to replicate the success of its app system in China, Douyin, which drives hundreds of billions of sales per year, mostly through influencer livestreams.
Despite growing popularity with content creators and marketers alike, TikTok faces a federal ban in the United States next month.