TikTok Shop tops Shein and Temu in U.S. sales growth

This comes as TikTok faces growing uncertainty over possible trade restrictions and national security issues

Highlights

• TikTok Shop’s sales in January grew 153%, compared to Shein’s 26% and Temu’s 28%.
• The platform gained more market share from Shein, particularly in transactions over $25.

TikTok Shop saw significant growth in the U.S., surpassing e-commerce competitors Shein and Temu in January, Bloomberg reports. According to Bloomberg Second Measure (BSM), which tracks credit and debit card transactions, TikTok Shop’s sales jumped 153% compared to the same period last year. In contrast, Shein’s sales grew by 26%, while Temu saw a 28% increase.

This growth builds on TikTok Shop’s strong performance in 2024, during which it steadily gained market share. “A strong shift from Shein customers toward TikTok Shop was observed over the past year,” BSM’s Joe Hung noted in a research report.

TikTok Shop gains market share from Shein

BSM’s data indicates that TikTok Shop is capturing more sales from Shein’s customer base than from Temu’s. Transactions above $25 — a key segment for Shein — rose by 16 percentage points for TikTok Shop in January compared to the previous year. In contrast, transactions under $25, which align more with Temu’s pricing model, increased by 7 percentage points.

This change suggests that more consumers who once shopped on Shein are now turning to TikTok Shop, which could impact Shein’s position in the U.S. market.

TikTok introduced in-app shopping in the U.S. in September 2023 and has made an impact since its launch. In December, it generated over $100 million in sales during Black Friday 2023, tripling its performance from the previous year.

The growth comes amid TikTok’s challenges and trade restrictions

TikTok’s Shop’s sales growth emerges as debates over the video app’s future in the U.S. continue. The platform remains caught in legal battles and under the looming threat of a ban if it doesn’t sell its U.S. operations. Lawmakers have raised concerns over its ties to Chinese parent company ByteDance, citing potential national security risks. However, recent reports say the app is available again for download on the Apple Store and Google Play in the U.S. after the companies received official assurances that they won’t be fined for hosting TikTok.

Adding to this uncertainty, President Donald Trump has introduced a 10% tariff on Chinese exports and proposed removing the small-parcel duty waiver, known as the “de minimis” rule, per Bloomberg. This rule currently exempts parcels under $800 from customs duties, a benefit that TikTok Shop, Shein, and Temu rely on for their U.S. operations.

Shein and Temu have already begun adapting to the potential end of the duty-free exemption. Bloomberg reports that Shein is considering lowering its valuation to around $30 billion for a potential initial public offering (IPO) in London.

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