China's e-commerce "killer move" live-streaming sales is the biggest threat that Amazon has to face.
Temu, which is rising in the United States, is stealing the limelight from Amazon. However, the real threat that Amazon may face is the Chinese e-commerce "killer move" - live-streaming sales. This year, online sales on "Black Friday" in the United States reached a new historical high, but Amazon, as the leading e-commerce platform in the United States, seems to have failed to continue the explosive sales of previous years. According to feedback from sellers and the Black Friday performance announced by major e-commerce platforms, the biggest impact on Amazon's traffic this year came from Temu and the newly entered TikTok Shop.
TikTok's rise in the United States is stealing the limelight from Amazon, but the real "killer move" of Chinese e-commerce that has yet to be fully unleashed may be live-streaming sales, which could be the biggest threat Amazon faces.
This year's online sales on "Black Friday" in the United States reached a new historical high, but Amazon, as the leading e-commerce platform in the United States, seems to have failed to replicate the frenzy of previous years.
According to feedback from sellers and the Black Friday performance announced by major e-commerce platforms, the biggest impact on Amazon's traffic this year came from TikTok and the newly entered TikTok Shop.
Some analysts believe that when consumers see significant discounts on other e-commerce platforms, their acceptance of regular prices is weakened, making it difficult for Amazon to attract consumers to purchase the same products without lower prices.
And this may only be the beginning of Chinese e-commerce conquering the US market. Some media analysis points out that given that TikTok has effectively disrupted the social media landscape in the United States, the newly launched live-streaming e-commerce platform TikTok Shop may be the "ultimate killer" that disrupts the dominance of Amazon in the US e-commerce market.
TikTok, a popular short video app owned by ByteDance, launched its e-commerce services in September this year for its 150 million monthly active users in the United States.
TikTok's e-commerce features live-streaming sales. Currently, hundreds of millions of young users are discovering new products through TikTok, especially in categories such as clothing and cosmetics. Influencers on the platform wear or try out these products to guide their fans to place orders.
Previously, TikTok's Chinese version, Douyin, had achieved tremendous success in the Chinese e-commerce field. According to media reports citing insiders, the transaction volume on the Douyin e-commerce platform exceeded one trillion yuan just over two years after its establishment, achieving the same level of efficiency that took JD.com 14 years, Alibaba 9 years, and Pinduoduo 4 years to reach.
As of now, TikTok Shop, which joined the "Black Friday" battle in the US market for the first time this year, has achieved impressive results:
From October 27th to November 2nd, TikTok Shop launched the "Black Friday Pre-Sale" event, achieving a performance of "155% growth in GMV sales in the US market and 145% growth in order volume". Several small shop sellers stood out.
From November 14th to November 20th, during the Black Friday promotion period, TikTok Shop saw a 205% MoM growth in order volume in the US market, and a 177% growth in the number of sold-out products, with home furnishings, fast-moving consumer goods, and women's clothing being the best-selling categories.
According to media reports, TikTok aims to increase its platform's total transaction volume (GMV) from less than $5 billion in 2022 to $20 billion.