TikTok, the short-form video-sharing giant, is looking to expand its e-commerce arm in the United States, some interesting new LinkedIn job postings reveal. If true, this would mean that the platform would now also directly compete with Amazon, and not just with Meta Platforms’ Facebook and Instagram.
First reported by Axios, the job listings indicate the Chinese company’s plans to establish an “international e-commerce fulfillment system” in the US.
“By providing warehousing, delivery, and customer service returns, our mission is to help sellers improve their operational capability and efficiency, provide buyers a satisfying shopping experience and ensure fast and sustainable growth of TikTok Shop,” the company wrote in the listing for a Seattle-based Business Solutions and Merchant Development Manager for a global fulfillment center.
Based on the job listings, TikTok is looking to build the fulfillment center “from scratch,” but there are no indications that the company intends to establish its own transportation fleet like Amazon — at least for now.
TikTok started exploring expansion to e-commerce via TikTok Shop outside of Asia in 2021. In August last year, the company partnered with Shopify, the e-commerce platform, to provide a shopping feature in the US, Canada, and the UK. It also launched a separate live shopping feature, first in the UK earlier in the year, and then soon in the US, just ahead of the holiday shopping season.
With the establishment of its own supply chain system in the US, e-commerce could be the company’s next big revenue stream, after its explosively successful ads business.
TikTok’s Meteoric Rise in the West
TikTok’s rapid growth over the pandemic siphoned audiences and potential earnings from Meta’s Facebook and Instagram, so much so that Meta’s platforms have been shameless in adapting to be more like TikTok with its Reels feature and algorithm updates.
“In our studies, something like almost 40% of young people, when they’re looking for a place for lunch, they don’t go to Google Maps or Search,” said Prabhakar Raghavan, a senior vice president at Google in charge of the Knowledge & Information organization. “They go to TikTok or Instagram.”
Information for this briefing was found via Axios, TechCrunch, and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.