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TikTok Reportedly Bans Links to Outside E-Commerce Websites as It Expands Shopping Platform

Chinese short-making app TikTok is taking steps to ban links to outside e-commerce websites like Amazon as it strengthens its shopping platform in the US. The move aims to encourage users to utilize TikTok Shop for their purchases. According to a report from ‘The Information,’ TikTok Shop is projected to incur a loss of over $500 million in the US this year. The loss reflects the company’s significant investment in hiring, building a delivery network, and supporting merchants with discounts and free shipping.

Consumers in the US are spending between $3 million and $4 million each day on TikTok Shop, with the company expecting this figure to surpass $10 million the end of the year. TikTok Shop was launched in 2021, starting in Indonesia, and has emerged as a major player in Southeast Asia. Its expansion into new territories has prompted e-commerce giant Sea to increase investments in its online shopping business Shopee.

Interestingly, TikTok faced security concerns in New York City earlier this month, resulting in a ban on the app and TikTok website on city-owned devices. City employees are prohibited from downloading or using the app. As TikTok continues to make strides in the e-commerce space, it faces both challenges and opportunities in different markets.

– ‘The Information’
– Sea