TikTok Shop's e-commerce sales in the US have faced a significant downturn partly due to rising tariffs on imports from China. Company employees reported a notable 20% to 25% drop in daily sales from foreign sellers since late March, correlating with tariff hikes. TikTok had initially projected steady sales growth for 2024, but the recent decline reflects ongoing struggles in attracting and onboarding new merchants amidst these cost increases. The situation is compounded by broader operational challenges and a restructuring in TikTok's leadership aimed at reinvigorating its US e-commerce strategy.
'The company's e-commerce business, TikTok Shop, is off to a slow start in the US this year, as daily US sales from foreign sellers dropped roughly 20% to 25% month-over-month in early May.'
'Internal data indicated that daily US sales climbed in March before a significant drop later in the month coinciding with tariff announcements, highlighting the impact of new US tariffs on foreign sellers.'
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