The Rise of TikTok Shop: 5 Social Commerce Learnings

TikTok Shop, which launched in September 2023, is a virtual space brimming with “shoppable” content—with no signs of slowing down.

As a content platform, TikTok is a powerhouse. It launched in 2018 with 133 million monthly active users, most acquired from the purchase of Musical.ly. Since then, the platform has experienced unprecedented growth. Here are a few eye-popping stats:

• As of Q4 2024, TikTok had about 1.6 billion global users, with 170 million U.S. users among them
• US users spend an average of 53.8 minutes per day on the app, while globally, users spend an average of 95 minutes per day.
• TikTok revenue was estimated at between $20 and $26 billion for 2024, with $10 billion of that coming from US users.
• TikTok made 23% of that revenue from shoppable content (the rest came from ads)

In September 2023, TikTok launched its game-changing TikTok Shop feature in the U.S. This marked a significant milestone in the evolution of social commerce. What started as a social and entertainment platform has quickly transformed into a powerful ecommerce engine.

For brands and retailers, this rapid growth presents both opportunities and challenges. With over 100 million social buyers in the U.S., understanding this emerging channel is an ecommerce imperative.

5 Takeaways from the TikTok Shop Ecommerce Model

TikTok Shop’s rapid ascent in the U.S. is creating shock waves through the nascent social commerce market. It’s the very definition of a disruptor. The platform’s success offers valuable lessons for brands and retailers looking to capitalize on social selling. Here are five important takeaways based on what’s happening on the platform right now.

🤳1. TikTok Shop is redefining social commerce

TikTok is creating its own rules around what social commerce means and shifting paradigms around customer loyalty in the process. TikTok Shop has a remarkable retention rate. About 81% of purchases come from existing customers. The platform leans heavily into AI-driven recommendations which fuel impulse buys and create sustained shopping behaviors.

The secret sauce is TikTok’s “For You Page” algorithm, which uses machine learning to analyze hundreds of user signals around engagement, interactions, user information, and content watched. Factors like video likes and shares, comments posted, accounts followed, content created, language, device, etc., are used to recommend content to users.

Product discovery is woven into this hyper-personalized experience and combined with short-form video content that average 30 – 60 seconds (though the platform allows for up to 10 minutes). It’s the perfect environment for quick purchase decisions.

✈️2. TikTok influencer marketing is ecommerce jet fuel

Creator partnerships on TikTok Shop are changing how products go viral. The platform’s commission-based model lets creators earn fees when products they promote lead to sales. This is a powerful incentive for creators and influencers whose followers tend to be incredibly loyal and dedicated. TikTok micro-influencers (creators with a following of around 10K to 100K people) have engagement rates of around 18% versus 4% on Instagram.

This makes TikTok influencers remarkably effective at driving sales. The platform’s influencer ecosystem is surprisingly democratic. Even influencers with as little as 5000 followers can command $25-$125 per post. Macro-influencers with between 750,000 and 2.5 million followers can charge much more, of course.

There’s no shortage of success stories from influencer campaigns. Beauty brand e.l.f. Cosmetics reported an 85% increase in year-over-year sales for its Halo Glow Liquid Filter makeup thanks to the product going viral on the platform. Meanwhile, CeraVe’s skincare products experienced such high demand from TikTok virality that the brand struggled to keep items in stock. This was fueled by influencer recommendations of the product (e.g., a skincare specialist with millions of followers hyping it up).

📹3. Short-form video is a big deal

Short-form video on TikTok is vertical, snackable content that’s typically under 60 seconds, with the most successful product videos clocking in at 21-23 seconds. This vertical format, designed for mobile-first viewing, has become the gold standard for social commerce, outperforming traditional horizontal product videos and static images.

The format is so effective that 43% of TikTok users have tried something new specifically because they saw it on the platform. Best practices for creating compelling shoppable videos on TikTok include:

• Create an immediate hook in the first 5 seconds to stop users from scrolling
• Choose products that work well in a short video and don’t require extensive research
• Tell an interesting story that provides value either through entertainment or education
• Keep it casual by showing products in real-world contexts versus staged environments
• Include interactive features like captions, graphics, stickers, and effects
• Use hashtags (but only if they’re relevant) to boost post visibility
• Encourage engagement from YouTube users by inviting feedback and engaging with comments
• End with a strong call-to-action that feels organic

Successful TikTok Shop sellers keep their content authentic and relatable, often featuring real customers and influencers demonstrating products in everyday situations. In the context of TikTok, less production value often means more authenticity and higher engagement.

💬4. Community engagement is TikTok’s secret sauce

TikTok’s ability to foster genuine connections between brands and buyers is practically legendary. Live shopping events, real-time Q&As, and community-driven product demonstrations create an environment where shopping feels more like joining a conversation than completing a transaction.

What makes TikTok’s approach particularly effective is its emphasis on user-generated content (UGC) as a trust-building tool. Even before TikTok changed all the rules around video and audience building, UGC was a powerful selling toool. Over 40% of adults in the US and UK confirm that UGC is an important resource when they’re deciding to buy something. When UGC is paired with a social media powerhouse like TikTok, magic happens.

Successful brands on TikTok Shop have mastered this winning combination. For example, Zuumtech grew their follower count from 0 to over 20,000 in just 45 days by focusing on community engagement through live events, reaching peak viewership of over 500,000 viewers per live session. Similarly, Willow Boutique built a loyal following by consistently engaging with their community through live shopping events, generating over $500,000 in sales within 60 days.

Finding success requires keeping your approach real. TikTok users value authenticity above all else, finding brands more trustworthy when they use genuine customer content rather than polished promotional material.

💳5. TikTok Shop is changing the ecommerce paradigm

Americans spend about $32 million a day on TikTok, according to Capital One Shopping. Live shopping events are emerging as the platform’s most dynamic feature. TikTok’s unique ability to successfully combine shopping with entertainment has turned it into a kind of modern digital mall, fueled by community, interaction, trends, and fun.

Product discovery will continue to be a huge part of the TikTok Shop appeal. It’s notable that over 71% of TikTok shoppers make purchases when they discover interesting products in their feed rather than actively searching for items.

Live shopping studios will also define the next phase of social commerce. In Douyin, China’s version of the app, users spent $223 billion during live commerce events in 2022. This is a glimpse of what’s possible in Western markets. Brands looking to capitalize on the TikTok phenomenon in 2025 should:

• Focus on building an influencer network rather than relying solely on brand-generated content
• Create content that feels authentic and natural, versus scripted
• Use paid ads for brand awareness (versus engagement) since a third of TikTok users are more likely to identify with a brand after seeing an ad
• Invest in live shopping capabilities and real-time engagement tools
• Test all TikTok Shop features including live shopping, shoppable videos, and product showcase

The brands who win on TikTok won’t necessarily be those with the biggest budgets. They’ll be forward-thinking companies who understand TikTok’s community-first approach. Success requires you to understand that TikTok isn’t a marketplace. At least, not in the way Amazon or eBay or any of the legacy digital marketplaces are. It’s a social ecosystem where entertainment, community, and commerce seamlessly intersect.