By Our Reporter
Bloomberg reports that TikTok plans to expand its U.S. e-commerce business tenfold this year to US$17.5 billion, which will pose a serious threat to Amazon – a greater threat.
The source, who asked not to be named, said ByteDance’s internal meetings in recent weeks discussed the 2024 product sales target for the U.S. TikTok Shop, TikTok’s e-commerce business. Of course, this goal may be adjusted based on how the business is progressing.
In addition, the Information also stated that TikTok plans to increase the platform’s commission and eliminate subsidies.
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The company is said to have informed sellers on Wednesday local time that it will increase commissions on most items from the current 2% + 30 cents per transaction to 8% in the coming months.
TikTok Shop will also reduce subsidies for some merchants and limit offers to best-selling items, a person familiar with the matter said, as the company currently cuts spending on the service.