TikTok Shop U.S. Gross Merchandise Value Hits $15.1B | E-Tailing — RetailNews Asia

Share Tiktok on mobile phone Screen. Young woman holding a Smart Phone with Tik Tok app. ROSARIO, ARGENTINA MARCH 15, 2023. In this article ( 8 ) TikTok Shop generated US$15.1 billion in gross merchandise value across the United States in 2025, up 68 per cent from the previous year, according to data from Momentum Works. The expansion established the platform as a major cross-border sales channel for Chinese manufacturers and domestic sellers, defying regulatory pressure and intense competition from Amazon and Temu. ByteDance built the platform by merging creator live streams and algorithmic product discovery into a direct checkout experience that bypasses traditional search-based retail. Expanding Across Core Retail Categories Fashion, beauty, and consumer electronics drove the bulk of U.S. Order volumes through short-form video links and creator storefronts. Lower take rates and subsidized shipping helped recruit thousands of merchants who previously depended solely on Amazon Seller Central. Supply chain infrastructure handled larger fulfillment runs through partnered logistics networks in California and Texas. The platform shortened delivery windows for local inventory while maintaining discounted direct air-freight routes from hubs in Shenzhen and Yiwu. The Content Commerce Blueprint in Asia ByteDance perfected this shopping model across Southeast Asia before scaling it westward. Regional content commerce across Southeast Asian markets is on track to reach US$77.9 billion in 2026 as Shopee and Lazada roll out competing live video formats. In Indonesia, Vietnam, and Thailand, social video transactions now account for a double-digit share of total online retail spending. Regional logistics networks adjusted their sorting hubs to manage high-volume, low-ticket parcels generated during evening live stream flash sales. Competition and Regulatory Targets Temu, operated by PDD Holdings, continues to fight for identical budget-conscious consumer dollars with aggressive discount coupons and gamified referrals. Meanwhile, Sea Limited’s Shopee invested heavily in creator incentives across Southeast Asia to defend its core market leadership against ByteDance. Merchants face rising advertising costs on the platform as competition for feed placement stiffens. RetailNews Asia tracks whether TikTok Shop can maintain its merchant retention rates through the 2026 holiday shopping cycle while targeting US$20 billion in North American sales. Advertisement Advertise with us Mobile 320×100 Questions & Answers Q. What business model does TikTok Shop use that differs from traditional online retail? A. TikTok Shop integrates creator live streams and algorithmic product discovery with a direct checkout experience. This approach allows customers to purchase directly without relying on traditional search-based retail platforms. Q. Which retail categories were most successful for TikTok Shop in the US, and how were orders placed? A. Fashion, beauty, and consumer electronics were the primary drivers of US order volumes. Customers placed these orders through short-form video links and specific creator storefronts on the platform. Q. How did TikTok Shop attract merchants who previously used Amazon, and what supply chain capabilities support its operations? A. Lower take rates and subsidised shipping helped attract merchants away from Amazon Seller Central. The platform uses partnered logistics networks in California and Texas, alongside discounted direct air-freight from China, to manage fulfillment. Q. What is the primary competition TikTok Shop faces, and what challenges do merchants experience on the platform? A. TikTok Shop faces intense competition from Amazon and Temu for budget-conscious consumers. Merchants on the platform are encountering rising advertising costs as competition for feed placement becomes more intense. Reader pulse Can TikTok Shop sustain its US growth amidst rising costs? Yes, strong potential Vote No, too competitive Vote Uncertain Vote 22,245 votes so far Tags ByteDance E-Commerce momentum works retail technology shopee social commerce Temu tiktok shop