According to a report on consumer trends for 2025 by Coefficient Capital and Dan Frommer, author of “The New Consumer,” as reported by Business Insider, TikTok Shop has surpassed Shein and Sephora in the competition for online shopping among US consumers.
The report is based on 11 surveys conducted with over 3,000 US consumers, with the most recent one completed this month. Launched in September 2023, TikTok Shop, as a relatively new online retailer, has seen remarkable growth. The report indicates that 80% of US users who access TikTok at least once a month are aware of TikTok Shop, signifying its rapidly expanding market influence. This rapid development has allowed TikTok to outpace retailers including Sephora, Shein, and Qurate in US consumer spending during the third fiscal quarter of 2024.

Sephora and Shein are popular shopping platforms among young US consumers, particularly among the Alpha generation. Qurate Retail Group owns six retail brands, including QVC, selling a variety of products through online channels. In 2023, Sephora helped its parent company LVMH achieve a record sales figure in North America, reaching $10 billion in revenue; while Shein generated a profit of $2 billion in the same year. Although Qurate’s third-quarter financial report showed a 5% decrease in revenue, its operating income still reached $152 million. On the other hand, according to the Financial Times, TikTok’s sales in the US have reached $16 billion. While the specific revenue of TikTok Shop since its launch in 2023 is not clear, TikTok’s economic report for 2024 noted that the platform brought in $15 billion in revenue for small businesses in the US. The report shows that 45% of surveyed Americans have purchased fashion apparel and accessories on TikTok Shop, with beauty and personal care products following at 44%.
Consumers have also bought electronics, home goods, food, toys, and books on the platform. In recent years, TikTok has driven the rapid growth of social media shopping in the US. Parent company ByteDance is clearly hoping for TikTok to replicate the success of Douyin.
Although TikTok is becoming increasingly popular due to its appeal to content creators and consumers, the platform faces a potential federal ban, requiring ByteDance to sell TikTok by January 19, 2024, or face a US ban. On the 6th of this month, a federal appeals court ruled that the ban is constitutional. To counter the potential ban, TikTok launched a “limited-time offer” this week, where users can earn up to $350 in TikTok Shop credits by inviting new users, with a maximum of $50 in credits per new user invited.