What: The social network is planning to enter e-commerce in the US.

Why it is important: This is not a marketplace approach, but a fully controlled retail one, which could put Tiktok on the map of retail and disrupt the fashion trade as we know it.

TikTok, the social media platform owned by Chinese company ByteDance, is reportedly planning to launch an online retail store on its U.S. app as early as next month. Unlike the current TikTok shop, which allows brands to sell products for a fee, the new initiative will involve TikTok handling inventory, warehousing, logistics, and customer service.

The company aims to take advantage of "social commerce" and leverage user data to refine its product offerings and shopping experience. However, the move also raises concerns about supply chain practices and environmental impact, drawing comparisons to Shein, a Chinese fast-fashion retailer accused of human rights violations and environmental harm.

Despite the potential benefits, the success of TikTok's e-commerce venture is far from guaranteed due to the complex and costly nature of setting up a supply chain and managing inventory.

Tiktok to open an online retail store in the US