Title: Fast Fashion Gets Faster: TikTok to Increase E-Commerce Sales 10X in 2024

With e-commerce now king, it’s no wonder why TikTok is angling to amp up their game in the sector. Reports say the ByteDance-owned video app is looking to increase their e-commerce business “tenfold” to reach roughly $17.5 billion in sales by 2024. And it looks like they’re taking swift action to make this goal a reality: recently, TikTok has announced that it would be quadrupling its seller fees from 2% of sales in the US to 6%, and then 8% come July.

This move puts TikTok in competition with the likes of established fast fashion retailers like Temu and Shein, both based in China. With relatively lower fees than popular competitors such as Amazon, TikTok sellers may be swayed to make the pivot soon.

What This Increase in E-Commerce Means for TikTok

TikTok Shop is aiming to have a strong presence in the US market, discussing their goals in meetings with internal businesses. However, it’s possible that plans may change throughout the year.

The spike in seller fees may initially appear to put TikTok at a disadvantage, but they are still more competitive that Amazon’s 15%. How successful the app’s entry into the fast fashion market will be remains to be seen.

Conclusion

TikTok has made it clear that they have big plans for their e-commerce sector in the year 2024. With quadruple the seller fees and a target tenfold increase in sales, the app looks to become a major player in the fast fashion game. Whether or not their efforts will be enough to reach their goals remain to be seen.