Soon you might be able to shop without leaving the TikTok app.
TikTok is reportedly working on an e-commerce business in the US that would sell made-in-China goods similar to the apps Temu and Shein.
According to The Wall Street Journal, TikTok plans to launch the program as early as August. It will work similarly to Amazon’s “Sold by Amazon” program, where TikTok is responsible for the storage and shipment of products and handles transactions on behalf of Chinese retailers.
The move is part of TikTok’s strategy to diversify its profits into other areas beyond advertising sales. According to unnamed sources who spoke with Journal, the company reportedly plans to only pay merchants once their items sell, rather than before, allowing it to return unpopular items.
The company has reportedly poached employees from Temu and Shein to work as warehouse and order managers, as well as buyers who negotiate the cost of items with retailers.
Some early applicants to TikTok’s sales program have also reportedly been rejected for having items that are too expensive, suggesting the company is focusing on lower-cost items similar to Temu and other competitors.
TikTok has had several recent run-ins with US regulators over concerns that it puts US users’ personal data at risk. In May, Montana Gov. Greg Gianforte signed Senate Bill 419, which will ban the use of the app within state lines starting on January 1, 2024, barring legal challenges. TikTok is also banned on government-issued devices.
This week, TikTok also seemingly went after Twitter and Instagram by launching text posts, which let people write text-based messages that can be jazzed up with music and stickers.