TikTok Shop spending jumps during Deals for You Days

News
 |  
Jul 2024
 |  
Retail Dive
Save to favorites
Your item is now saved. It can take a few minutes to sync into your saved list.

What: U.S. shoppers spent an average of USD 52 each during TikTok Shop’s July sale, marking a historic high and a break from recent declines, according to Earnest Analytics.

Why it is important: This significant increase in spending highlights TikTok Shop's growing influence in the U.S. e-commerce market, showcasing its potential to compete with established players like Shein and Temu during major sales events.

During TikTok Shop’s Deals for You Days event, U.S. shoppers spent an average of USD 52 each, a historic high and a notable increase from previous spending trends, according to Earnest Analytics. This event accounted for 37% of Chinese e-commerce sales in the U.S. during the week ending July 11, closely competing with Temu at 37.2% and Shein at 25.8%. Despite TikTok Shop’s growth, its customers' average spending remains at about 70% of that of Shein and Temu shoppers. The event's success is attributed to the platform's ability to drive impulse purchases through engaging social media content. Major brands like L’Oréal Paris, Maybelline New York, and NYX Professional Makeup participated in the sale, contributing to the spike in sales. The overlap of customers among TikTok Shop, Shein, and Temu suggests a competitive landscape where intent-driven shopping on Shein and Temu contrasts with impulse buying on TikTok Shop.

TikTok Shop spending jumps during Deals for You Days