TikTok Ban Threat Scares Off US Merchants

The media reported that TikTok faced problems attracting American sellers to its online shopping service.

TikTok Ban Threat Scares Off US Merchants


American merchants are currently showing more interest in their standard operations and are interested in expanding their scale. They are also concerned about the potential prospect of a ban on the use of TikTok in the United States. If the relevant decision is made by the local authorities, it will also affect the trading platform based on this service.

Foreign sellers show a different trend in terms of attitude to TikTok. They believe that at some point they will have the opportunity to connect to the second-largest e-commerce space in the world. But TikTok is in no hurry to reward this faith, leaving in force the previously imposed ban on the use of the American version of the trading platform by foreign sellers.

American merchants have not yet completely abandoned the social network, which is under threat of a ban. Last month, many medium and small businesses used the company’s trading platform to attract new customers.

More than half of the small businesses that used TikTok reported improved marketing performance. Also, 78% of merchants reported a favorable return on investment (ROI) from advertising on social networks. More than half of these brands have demonstrated a positive return on investment in just six months after the launch of TikTok advertising tactics.

Last week it became known that advertising expenses on the social network increased by 11%, despite the unfavorable background in the form of threats of government actions. The largest users of the platform are Amazon, Apple, and DoorDash.

Joshua Lowcock, director of media relations at UM Worldwide advertising agency, says there is a low probability that eventually a decree will be issued in the United States banning TikTok immediately. According to him, the relevant legislative process will be lengthy, which means that marketers will have enough time to develop alternative strategies.

TikTok, owned by the Chinese company ByteDance, was launched in 2017. By 2018, the social network application became the most downloaded among Americans. In the USA, the number of active users of this application is 150 million people.

The high level of popularity of the social network has aroused interest from brands and retailers who can demonstrate their products to a young audience in TikTok. Banning the use of this application for business representatives will mean the loss of a highly effective channel of interaction with a critical demographic group.

As we have reported earlier, TikTok ByteDance Launches Payments With J.P. Morgan.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.