(Nexstar) – Looking to snag a trendy pair of sunglasses, a skincare line from an influencer, or a tiny folding chair? You’re not alone. TikTok Shop, a growing online marketplace, is where people are increasingly spending their money on everything from kitchen gadgets to quirky trinkets.
Research from 2024 indicates that TikTok Shop was recognized as the fastest-growing online retailer last year.
In many ways, it functions similarly to major e-commerce platforms like Amazon. You can search for a product, read user reviews, and have items shipped right to your doorstep. However, TikTok’s integration of social media creates a shopping experience that’s quite different from Amazon’s.
Users can buy products featured in creator videos and live streams. For instance, a makeup tutorial displayed on TikTok allows users to click the “Shop” icon and purchase any products used during the demo.
TikTok isn’t a manufacturer; rather, it serves as a marketplace for various products. You might find well-known brands like Nike alongside items from “a foreign store” curated by TikTok personality Alyssa Pannozzi.
Many items available are dropshipped, a method that relies on third-party suppliers to fulfill orders rather than keeping inventory. So, if you order a dress from a seller using this model, they simply notify the supplier, who then ships the item directly to you.
Are TikTok Shops affected by customs duties?
Some products sold on TikTok are manufactured abroad, including in China, and these may be subject to U.S. customs duties on imports.
Currently, air tariffs on Chinese imports have decreased significantly, going from 145% to 30%. Yet, there’s uncertainty about potential changes in the coming months. Even with peak tariffs reduced, consumers have noticed that some items now cost more than originally listed.
An additional concern for TikTok Shops is a potential legal ban on the app. Although this ban, proposed during President Trump’s administration, has been postponed multiple times, the law passed by Congress still remains in effect.
As of now, the ban has been deferred until mid-June, but there’s a chance it could be delayed further.
