TikTok, the short video platform owned by ByteDance, is gearing up to expand its eCommerce platform, TikTok Shop, into Spain*and Ireland(where sellers can already register by invitation only) this coming December, according to reports from the South China Morning Post.
This expansion marks TikTok Shop’s first entry into Europe since it launched in the United Kingdom in 2021, amidst financial and geopolitical challenges for TikTok and ByteDance, as revenues have not met expectations.
According to Chinese media 36Kr, TikTok’s total revenues from January to September fell short of expectations, and TikTok Shop has not achieved its gross merchandise volume goals in recent months. This has heightened the pressure on the company to diversify its revenue streams beyond advertising since the platform is currently not profitable.
To bolster its eCommerce business, ByteDance has been actively promoting TikTok Shop in markets such as the United States, the United Kingdom, and six Southeast Asian countries. Additionally, TikTok recently launched the PayLater service in Malaysia, allowing for installment payments for in-app purchases, a strategy that complements its earlier partnership with the financing provider Atome.
Meanwhile, in the United States, TikTok faces regulatory challenges, as the Biden administration is calling for the divestment of the app’s operations in the country.
This isn’t the first time the imminent arrival of TikTok Shop in our country has been announced. Back in January 2023, it was announced that the platform was getting ready to launch in Spain and 11 other countries, actively seeking new talent to manage its operations.
In July of this year, the social network announced it would be launching in Spain and Ireland in October, but postponed the date “by a few months” without providing a specific timeline.
In September 2023, TikTok Shop began operations in the United States and aimed to reach $20 billion in sales (just over €18 billion) by the end of 2023. However, last September, a year after its North American launch, the company reported commercial results that fell short of expectations.
This was despite the company securing an agreement with Amazon to allow users to purchase marketplace products directly through the social network.
Currently, the shopping platform is operational in eight markets: the United States, the Philippines, Indonesia, Malaysia, the United Kingdom, Singapore, Thailand, and Vietnam.
Even though the numbers might not reflect it, during its active period, TikTok Shop has achieved significant market penetration in these regions: in the United States, TikTok Shop has become the ninth-largest eCommerce beauty and wellness retailer, while in the United Kingdom, it ranks as the second largest in the market.
Photo: Depositphotos.
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