The growth of popular video sharing platform TikTok slowed down, prompting concerns about its e-commerce business, TikTok Shop, according to a report.
In 2023, TikTok was the most downloaded and highest-grossing app, but not the most utilized. Facebook, WhatsApp, Instagram, and Messenger dominated, with Facebook having the most monthly users. Market intelligence company Sensor Tower reported decreased monthly active user growth from 12% year-over-year each quarter in 2022 to 3% in 2023 for the Chinese-owned social media platform, as per a TechCrunch report.
By transforming video content into monetary sales, TikTok Shop aimed to take advantage of the platform's influence on consumer behavior, which is best demonstrated by the widely used "TikTok made me buy it" meme. The platform experimented with in-app shopping sections like "Trendy Beat" in the UK, introduced an affiliate program for creators, and officially launched TikTok Shop in the U., featuring brands such as PacSun, Revolve, Willow Boutique, and KimChi Chic.
In this photo illustration, the download page for the TikTok app is displayed on an Apple iPhone on August 7, 2020 in Washington, DC.
However, as sellers embraced the shopping platform, user complaints emerged. Some users voiced frustration, characterizing TikTok Shop as transforming the app into an "ad-filled wasteland" and a "dystopian" space. Redditors debated whether TikTok Shop had "ruined" the app, citing an influx of videos promoting cheap products and dropshipping.
TikTok users expressed discontent with the growing number of videos attempting to promote Shop features. A Reddit user stated, "I find myself scrolling less and less because I know pretty much every video is just trying to get me to buy some random thing."
Moderation Challenges
TikTok Shop, launched in September in the US, combines shopping with short-form video and live broadcasting to make billions in 2024. However, challenges arise as the platform struggles to moderate its 200,000 sellers. Violation points for infractions lead to consequences ranging from product blocks to outright bans, Business Insider reported.
Sellers encounter difficulties with the appeal process, with chat support often deemed ineffective. Those with dedicated contacts or working through approved agencies experience faster resolution. While TikTok enforces policies using a combination of technology and human moderation, automated tools have faced criticism for being overly aggressive. Comparable e-commerce platforms like Amazon, Etsy, and Shopify also utilize AI in their moderation processes.
Amazon Rival
TikTok Shop has garnered popularity among users who appreciate its algorithm's ability to predict preferences, creating a unique digital shopping experience. According to Bloomberg, TikTok Shop users liken it to a digital farmers' market or craft fair, setting it apart from platforms like Amazon and Etsy. Impulse purchases driven by personalized recommendations from trusted sources have made the platform "dangerous for their bank accounts."
The app facilitating US merchants to open TikTok accounts has seen over 500,000 downloads, with the product variety expanding daily, encompassing gardening tools, cosmetics, espresso machines, and more. TikTok Shop's simple technology is making it a go-to platform for a variety of merchandise.
Related Article: Over 12,000 Parents Urge TikTok to Label AI Influencers Fueling Unrealistic Beauty Standards for Kids
