May 4, 2025 - 11:56pm - by

Social media giant TikTok has innovated and changed a lot about how we use the internet, and increasingly, that includes shopping.

Given its simple, streamlined structure of feeding videos to users, TikTok may not seem like the most likely app to become a one-stop shop for everything on the internet, but – mostly thanks to a huge Gen Z userbase – that’s exactly where it is heading. Research shows that younger people are increasingly using social media (especially TikTok) in place of search engines, and now, in place of “traditional” online stores and e-commerce.

The app was already carving out a niche as a place for influencers to recommend products, with popular trends and hashtags like #TikTokMadeMeBuyIt driving sales even before businesses could sell anything directly on the app. Then in September of 2023, TikTok announced the worldwide rollout of TikTok Shop, its in-app shopping platform powered by Shopify.

Whether you’re a business looking for another sales avenue, or a TikTok user and customer curious about the platform, here are four things you need to know about TikTok Shop.

1. It’s more popular than you might think

TikTok itself has been one of the fastest-growing social media platforms since its launch, but its sales platform has proven even more immediately popular. Less than two years in, one U.S. survey shows 37% of Americans under 60 have purchased something on TikTok Shop.

Other data suggests that only between a quarter and a third of marketers are using TikTok at all, with many of those not using TikTok Shop, so it seems businesses are lagging behind consumers in meeting them where they want to engage and shop. And while TikTok users aren’t quite as likely to follow as many businesses and brands on the platform, a survey from Sprout Social showed that more than half of users interact with brands daily, and product discovery was the thing users wanted most from brands on TikTok.

2. Most products sold on TikTok are health and beauty

Since its launch, TikTok Shop has been dominated by a few specific product categories, especially things like cosmetics, wellness products and fast fashion. However, as more businesses join the platform, the market is diversifying, if slowly.

In its early days, nearly all products sold on TikTok were health and beauty, and while other product categories have started making their way onto the platform, health and beauty still makes up around 79% of sales.

So, if you are a cosmetic, hair or skincare brand, you will be in good company on TikTok Shop, but also face a lot of competition. 

3. It really is the wild west out there

While younger, female users are the most likely to make a purchase on TikTok Shop, that may be more to do with a lack of products on offer for other audiences – meaning a lot of opportunity for new brands and product categories to get into the market.

More than half of active TikTok users are male, and older users (relatively speaking) are increasingly getting onto the platform – there just isn’t much to interest them shopping-wise. There is a large untapped market here. But it is also a relatively unregulated and sometimes unreliable market.

Complaints about TikTok Shop abound. Reviews on TrustPilot average 1.4 stars (out of 5), and while those reviews largely reflect bad experiences with specific stores on the platform – rather than issues with the platform itself – TikTok does not seem overly interested in intervening or regulating the stores that operate there.

It could be that fear and risk of scams is keeping some users from buying on TikTok Shop, but there is also data showing that those who do make a purchase on the platform often return and become regular buyers. A large portion (more than 80%) of all TikTok Shop sales are made by existing customers.

4. It goes really well with influencer marketing

Influencer marketing long predates TikTok, and is still going strong on other social media platforms – but TikTok is where it really shines. And with TikTok Shop, it is now even easier to guide potential customers from an influencer video directly to making a purchase.

When an influencer posts a paid review or other video about your brand on TikTok, a new customer can be purchasing that product from your TikTok Shop within a couple of taps, and without leaving the app. It’s a pretty ideal way to gain conversions online, and very easy to track ROI too.

A Sprout Social report shows that the average TikTok influencer charges about $10 (USD) per 1,000 followers for a post, which is on par with Instagram and Snapchat, and about half the cost of Facebook and YouTube. Combined with the ease of making a purchase on TikTok Shop, this makes for a fairly cost-effective bit of advertising.

Let us help!

If you're looking to create a social media or digital marketing strategy that includes TikTok Shop, or just need some good advice, drop us a line! Social media is our specialty, and we love working with companies to find their audiences and drive business online. Contact us today for a quote or to set up a meeting!