Tiktok is heating up competition in the U.S. It is expanding online commerce to compete with social and online retail giants.

Mahmoud Bennett Social Media Producer

TikTok is planning to open US fulfillment centers, hints at e-commerce plans

Oct 13, 2022

Mahmoud Bennett Social Media Producer

By Mahmoud Bennett (Social Media Producer), Stacey Chamberlain (Producer)

Social media giant TikTok is heating up competition in the U.S. A new report indicates the Chinese-owned platform is setting up its own product fulfillment centers in America to expand into the e-commerce space.

The company posted several job openings on LinkedIn, seeking out industry veterans in Seattle and Los Angeles to support the new warehouses.

“By providing warehousing, delivery, and customer service returns, our mission is to help sellers improve their operational capability and efficiency, provide buyers a satisfying shopping experience and ensure fast and sustainable growth of TikTok Shop,” the company wrote in one job listing.

In Southeast Asia, TikTok has already found success in e-commerce shops. Axios reported this move to build out its own U.S. e-commerce supply chain could give them more control and boost their profits around the world.

This news comes just days after the platform’s parent company ByteDance reported a loss of more than $7 billion in 2021, as TikTok spent lots of cash pushing for more growth.

The platform now has more than 1 billion users. Its unprecedented expansion and popularity has taken a toll on well-established social giants like Facebook and Instagram, which have had to roll out copycat algorithms to keep up.

Analysts say TikTok going big on e-commerce in the U.S. will be an expensive endeavor, but it will allow them to go head-to-head with established competitors such as big box and online retailers Amazon and Walmart.

Tags: amazon, ByteDance, E-commerce, Facebook, Instagram, TikTok, Walmart

MAHMOUD BENNETT: TIKTOK IS HEATING UP COMPETITION IN THE U.S.

NEW REPORTS SHOW THE SOCIAL GIANT IS SETTING UP WAREHOUSES IN AMERICA TO EXPAND ITS RETAIL BUSINESS EFFORTS.

TIKTOK HAS SEEN MASSIVE SUCCESS OVER THE PAST FEW YEARS AND WITH NOW OVER A BILLION USERS IT WANTS TO BUILD ON THAT BY ESTABLISHING ITS FIRST U.S. FULFILLMENT NETWORK.

THE CHINESE OWNED PLATFORM POSTED THESE JOB OPENINGS ON LINKEDIN, SEEKING OUT INDUSTRY VETERANS IN SEATTLE AND LOS ANGELES TO SUPPORT THE NEW WAREHOUSES.

TIKTOK HAS ALREADY FOUND SUCCESS IN VIRTUAL SHOPS IN SOUTHEAST ASIA. EXPERTS SAY THIS MOVE TO BUILD OUT ITS OWN U.S. E-COMMERCE SUPPLY CHAIN COULD GIVE THEM MORE CONTROL AND BOOST THEIR PROFITS AROUND THE WORLD.

ALL OF THIS COMES JUST DAYS AFTER THE PLATFORM’S PARENT COMPANY BYTEDANCE REPORTED A LOSS OF 7 BILLION DOLLARS FOR 2021, AS THEY SPENT LOTS OF MONEY PUSHING FOR MORE GROWTH.

AND IT’S NOT WITHOUT WINS. TIKTOK’S UNPRECEDENTED EXPANSION AND POPULARITY HAS TAKEN A TOLL ON WELL-ESTABLISHED SOCIAL GIANTS LIKE FACEBOOK AND INSTAGRAM WHICH HAVE HAD TO ROLL OUT COPYCAT ALGORITHMS TO KEEP UP.

ANALYSTS SAY TIKTOK GOING BIG ON E-COMMERCE IN THE U.S. WILL BE AN EXPENSIVE ENDEAVOR, BUT IT WILL LET THEM GO TOE-TO-TOW WITH ESTABLISHED COMPETITORS IN THE LIKES OF AMAZON AND WALMART.