Home » US business news » TikTok parent ByteDance postpones US shop launch

TikTok parent ByteDance postpones US shop launch

By Nithya Bose in US business news, posted May 11, 2023

TikTok-owned ByteDance has put off the launch of its online shopping platform in the US amid concerns over the video-sharing app's future.

ByteDance has postponed opening the shop to all sellers, initially intended for early spring, to June at the earliest.

It is mainly due to merchants' concerns about a possible ban on the app and the slow adoption of live-streaming e-commerce in the US.

The delay is a setback in ByteDance's most lucrative market outside China.

Its US business faces headwinds, including rising geopolitical tensions and intensifying e-commerce competition led by rivals such as Shein and PDD Holdings' Temu.

ByteDance is targeting new revenue streams and has restructured several business lines to improve efficiency since Beijing tightened oversight on China's internet sector.

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ByteDance recorded operating losses of more than $7bn in 2021.

TikTok's push into online shopping is part of a drive to earn more money from its stable of Chinese and global apps that, while hugely popular, have yet to lift the company into profit.

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