Some China-based merchants on Amazon have been relying on TikTok as an alternative platform to sell clothes, cosmetics, electronics, and more to U.S. buyers.
However, the recent passing of the bill, which pushes the potential ban of the platform, could have a significant implication for these Amazon sellers.
Amazon Merchants Fear TikTok Ban in the U.S.
Some sellers from Shenzhen, China's major hub for Amazon merchants, voiced their concerns about the rising geopolitical tension between the two countries which could lead to the potential TikTok ban. The merchants are now sensing "helplessness" about the issue.
According to research from Jungle Scout, about 20% of Amazon sellers, brands, and businesses are planning to bring their merchandise to TikTok Shop by this year. Prior to the current issue, ByteDance reportedly estimated a $17.5 billion revenue within its U.S. e-commerce business.
TikTok launched its Shop in September 2023, giving a platform to over 200,000 merchants from day one. With the looming ban on the platform still ongoing, merchants are fearing some significant changes in the e-commerce system.
TikTok Shop Competes on E-Commerce Landscape
Since its release, TikTok Shop has been used by the company to boost its e-commerce presence in the U.S. When compared to Temu, another Chinese-based platform, TikTok Ship offers more branded goods which makes it a tight competitor to Amazon.
During the previous Black Friday, TikTok gave subsidies to merchants who marked down their prices by as much as 50% to boost the sales. Outside the holiday, merchants are reportedly encouraged to sell goods at a huge discount.
According to some merchants, diversifying their channels is one way to boost their sales. "Margins on Amazon are getting thinner and competition is increasingly fierce because of Temu, so TikTok gives us another option," a merchant said.
Related Article : TikTok Ban Only Supported by 28% of Americans, New Poll Says
