Social commerce in the US is expected to reach almost $80 billion by 2025, with a global value reaching $2.9 trillion by 2026. Facebook still reigns supreme in this category, with one-third of social commerce buyers saying they prefer to shop through Facebook and Facebook Marketplace.
But after its US launch in September 2023, TikTok Shop has become a significant competitor in the social commerce space. Momentum has been slow to build; only 11% of US households report making a purchase through TikTok. But those sales equate to a 7.7% share of the total social shopping Gross Merchandise Value (GMV) and $853.32 million. Gen Z, unsurprisingly, led the way in this effort, with 18-24-year-olds being 3.2 times more likely to purchase through TikTok Shop than the average consumer.
Even more key: 81.3% of TikTok Shop sales came from repeat customers. It may not be the platform of choice for most shoppers, but the early adopters who make purchases there become loyal customers.
As marketers look to the horizon of social commerce, it is easy to see how the US could follow in the footsteps of countries in Southeast Asia, Thailand in particular, where TikTok Shop had an earlier beta rollout and where market share now exceeds 25%, representing $2.85 billion in sales. Until then, it is important to note that nearly all (97%) of customers who made a purchase through TikTok Shop also shop at Amazon.
