Earnest Analytics released a new report on April 10, revealing insights into the performance of the e-commerce platform TikTok Shop.
The study analyzed credit card transaction data and found that over 11% of U.S. households have made purchases via TikTok Shop since its debut in September 2023.
According to the report, TikTok Shop accounted for 68.1% of social shopping gross merchandise value (GMV) in February 2024, dwarfing competitors like Instagram Checkout, Facebook Shop, and Flip App, which combined for less than 1% of GMV. The livestream shopping app Whatnot captured the remaining 31% share.
The data indicates TikTok Shop enjoys strong customer loyalty. 81.3% of sales in February 2024 came from existing customers, up from 64% in November 2023. Notably, adults aged 18-24 (Gen Z) are 3.2 times more likely to make purchases on TikTok Shop than the general adult population.
TikTok Shop users exhibited spending patterns similar to the general population, allocating 26% of their apparel budget to off-price retailers and 11% to fast fashion brands in the year ending February 2024. This compares to 24% and 7% for non-TikTok shoppers.
The brands with the highest overlap of customers shopping on TikTok Shop include Shein (28%), Temu (25%), Etsy (17%), eBay (14%), and Amazon (12%).
“TikTok Shop could be part of brands’ strategy to get younger shoppers to spend on apparel and accessories, a spending segment in which they lag other cohorts,” Earnest Analytics stated.
While the findings demonstrate Gen Z’s appeal for TikTok Shop and traction in the e-commerce market, the report does not assess factors that could impact future performance, such as a potential U.S. ban or evolving platform policies among rivals like Facebook and Instagram. Click here for the full report.
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Earnest Analytics released a new report on April 10, revealing insights into the performance of the e-commerce platform TikTok Shop.
The study analyzed credit card transaction data and found that over 11% of U.S. households have made purchases via TikTok Shop since its debut in September 2023.
According to the report, TikTok Shop accounted for 68.1% of social shopping gross merchandise value (GMV) in February 2024, dwarfing competitors like Instagram Checkout, Facebook Shop, and Flip App, which combined for less than 1% of GMV. The livestream shopping app Whatnot captured the remaining 31% share.
The data indicates TikTok Shop enjoys strong customer loyalty. 81.3% of sales in February 2024 came from existing customers, up from 64% in November 2023. Notably, adults aged 18-24 (Gen Z) are 3.2 times more likely to make purchases on TikTok Shop than the general adult population.
TikTok Shop users exhibited spending patterns similar to the general population, allocating 26% of their apparel budget to off-price retailers and 11% to fast fashion brands in the year ending February 2024. This compares to 24% and 7% for non-TikTok shoppers.
The brands with the highest overlap of customers shopping on TikTok Shop include Shein (28%), Temu (25%), Etsy (17%), eBay (14%), and Amazon (12%).
“TikTok Shop could be part of brands’ strategy to get younger shoppers to spend on apparel and accessories, a spending segment in which they lag other cohorts,” Earnest Analytics stated.
While the findings demonstrate Gen Z’s appeal for TikTok Shop and traction in the e-commerce market, the report does not assess factors that could impact future performance, such as a potential U.S. ban or evolving platform policies among rivals like Facebook and Instagram. Click here for the full report.