Since its launch in September 2023, over 11% of US households have purchased items via TikTok Shop, according to data from a recent Earnest Analytics’ report, which analyzed credit card transaction data to learn more about TikTok Shop users.
Here are five insights into TikTok Shop’s performance and what that means for brands.
Key stat: TikTok Shop sold 68.1% of social shopping gross merchandise value (GMV) in February 2024, per the report. Livestream shopping app Whatnot has captured 31% of GMV, while the combined GMV of Instagram Checkout, Facebook Shop, and Flip App amounted to less than 1%.
What it means: Consumers aren’t just using TikTok for social inspiration, they’re actually making purchases on the platform.
Some context is required:
Key stat: 81.3% of TikTok Shop sales came from existing customers in February 2024, up from 64% in November 2023, according to Earnest Analytics.
What it means: TikTok Shop has earned consumers’ loyalty.
Key stat: Gen Z adults between 18 to 24 are 3.2 times as likely to make a purchase on TikTok Shop than the general adult population, said the report.
What this means: While not surprising, it validates what we’ve been saying: Brands need to be on TikTok to reach Gen Z.
It’s not the only way to reach younger consumers. Instagram, retailer sites, and even brick-and-mortar stores play a role in how Gen Z shops, according to our Gen Z’s Path to Purchase report, meaning brands should have a presence across all to ensure success.
Key stat: TikTok Shop customers spent 26% of their apparel wallet on off-price department stores and 11% on fast fashion in the 12 months ending February 2024, compared with 24% and 7% for non-TikTok Shoppers.
What it means: TikTok Shop users are price-conscious—just like everyone else.
Key stat: Around 28% of Shein customers shopped at TikTok Shop in its first months, one of the highest overlaps of any fast-fashion or general apparel brand. A quarter (25%) of Temu’s customers also shop via TikTok Shop, as do 17% of Etsy, 14% of Ebay, and 12% of Amazon customers.
What it means: The competition is heating up among retail marketplaces.
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