How can brands win on TikTok Shop?

It integrates product discovery, content, and checkout in one app.

TikTok is extending its influence from entertainment to retail, with TikTok Shop changing how consumers discover and buy products.

Launched in 2021, TikTok Shop has grown into a global player, expanding to 16 markets and generating more than $30 billion in gross merchandise value (GMV) by 2024, according to an August 2025 report by Bain & Company.

In Southeast Asia, it is now amongst the region’s leading e-commerce platforms, while in the US, it continues to gain ground despite regulatory scrutiny.

Unlike traditional e-commerce, which depends heavily on search and external traffic, TikTok Shop integrates product discovery, engagement, and checkout within the same app. Its recommendation algorithm links livestreams, short-form videos, and in-app purchasing, driving a high volume of impulse buys.

A preview of its potential can be seen in Douyin Shop, TikTok’s Chinese counterpart. Last year, Douyin ranked as China’s second-biggest e-commerce platform in fast-moving consumer goods, with sales growing at an annual rate of 80% from 2021 to 2024, Bain said.

Although running a TikTok Shop may appear more costly than traditional marketplaces, analysts argue the comparison is closer to a blend of YouTube, Instagram, and Amazon, since the platform acts both as a marketing and a sales channel.

For brands, success requires new capabilities. Beyond logistics and search optimisation, companies must adapt to content-driven commerce by scaling short video and livestream production, tailoring product portfolios to TikTok’s trend cycles, and using affiliates to extend reach.

Performance depends on deploying TikTok’s traffic tools, applying performance marketing tactics, and maintaining efficient shop operations. Bain noted that many companies now treat TikTok Shop as part of a wider portfolio strategy, shifting budgets fluidly across platforms as consumer behavior changes.

Competition is intensifying. Challenger brands are using TikTok Shop to build share rapidly, often outpacing established players. Larger rivals are responding, with YouTube Shorts, Instagram Reels, and Snapchat Spotlight expanding, while local apps such as Kwai, Josh, and Roposo compete for users in emerging markets.

Analysts said brands that fail to adjust risk losing younger consumers, who increasingly discover products through short videos and livestreams rather than through search.

Questions to ponder:

1. How can brands achieve sustainable margins given the cost of constant content creation and affiliate fees?
2. How should companies structure teams and workflows to balance TikTok commerce with traditional channels?