TikTok Shop's E-commerce Affiliate Witnesses Astounding $4.4 Billion GMV Growth, Outpacing Competitors

TikTok's new foray into the world of online shopping has resulted in rapid success for its e-commerce affiliate. 

Taking advantage of the app's enormous user base, TikTok Shop has experienced an expansive growth in revenue and gross merchandise value (GMV), culminating in a sevenfold increase in GMV to a staggering $4.4 billion in 2022 from just $600,000 in 2021. 

Positioned as a rival to older competitors Shopee and Lazada, TikTok Shop's rapid growth saw it aggressively expand its market share across Southeast Asia, especially targeting nations boasting large populations of TikTok users. 

While Shopee and Lazada still dominate the region's e-commerce sector, the report stated that TikTok Shop maintained the fastest growth rate over the past year. 

Despite a slowdown in e-commerce sales following the lifting of pandemic restrictions, the sector is expected to grow further as offline shopping returns. 

According to AFP reports, The region may also benefit from Chinese firms reducing their dependence on the US market, with Chinese brands and manufacturers expanding into other countries in Southeast Asia.