The rise of Temu in the United States is currently overshadowing Amazon, but the real challenge Amazon may face comes from the yet-to-be fully unleashed Chinese e-commerce strategy of live streaming sales.
This year's Black Friday online sales in the U.S. reached a new historical high. However, Amazon, a leading e-commerce platform in the country, seemingly did not continue its previous years' record-breaking sales performance.
Feedback from sellers and reports from various e-commerce platforms indicate that this year's Black Friday significantly impacted Amazon's traffic, primarily due to Temu and the newly participating TikTok Shop.
Analysts believe that consumers, after seeing significant discounts on other e-commerce platforms, have become less receptive to regular prices. Consequently, Amazon struggles to attract buyers if its prices for similar products are not lower.
This could just be the beginning of Chinese e-commerce's conquest of the American market. Media analysis suggests that TikTok, having already disrupted the U.S. social media landscape, could be the ultimate game-changer in the e-commerce sector dominated by Amazon with its newly launched TikTok Shop.
TikTok, a popular short video app under ByteDance, launched its e-commerce service in the U.S. in September, targeting its 150 million monthly active users.
TikTok's e-commerce strategy is characterized by live streaming sales. Currently, millions of young users are discovering new products on TikTok, especially in categories like clothing and cosmetics. Influencers on the platform wear or try these products, encouraging their followers to make purchases.
TikTok's Chinese counterpart, Douyin, has already achieved significant success in China's e-commerce sector. According to media sources citing insiders, Douyin's e-commerce platform reached a transaction volume of over one trillion yuan in just over two years, a feat that took JD.com 14 years, Alibaba 9 years, and Pinduoduo 4 years to achieve.
In its first year participating in the Black Friday sales in the U.S. market, TikTok Shop's performance was impressive:
- From October 27 to November 2, TikTok Shop launched a "Black Friday Early Access" event, achieving a 155% increase in Gross Merchandise Volume (GMV) and a 145% increase in order volume in the U.S. market, with several small shop sellers standing out.
- From November 14 to November 20, during the Black Friday promotion, TikTok Shop managed a 205% increase in order volume and a 177% increase in the number of products sold in the U.S. market, with home goods, fast-moving consumer goods, and women's clothing being the top-selling categories.
Media reports state that TikTok aims to increase its platform's total GMV from less than $5 billion in 2022 to $20 billion this year.