TikTok Shop is driving more online sales in the US than Target and other major retailers

TikTok is battling it retired pinch the large dogs successful online shopping, and it's starting to salary off.

In July, US spending connected its e-commerce platform, TikTok Shop, was greater than online spending astatine awesome retailers for illustration Target, Costco, and The Home Depot, according to US in installments and debit paper transaction information compiled by the customer-intelligence patient Consumer Edge.

TikTok Shop accounted for astir 2% of online US unit spending past month, up from astir 1.2% a twelvemonth ago, per Consumer Edge's analysis.

That jump successful marketplace stock is "massive," said Michael Gunther, SVP of Research & Market Intelligence astatine Consumer Edge.

TikTok is superior astir taking connected large players for illustration Amazon and Walmart, moreover if its app is centered connected short videos and entertainment.

In caller weeks, the institution has begun introducing its ain Amazon Prime-style membership programme pinch free shipping and different perks. It's besides offering managed services to sellers who request thief making videos and advertizing their products.

The institution pulled successful complete $500 cardinal successful US income during past year's Black Friday Cyber Monday week, and it's been onboarding awesome brands for illustration Samsung, Disney, and Ralph Lauren successful caller months.

Some of TikTok's year-over-year US walk maturation successful July could stem from the truth that its e-commerce app didn't person to compete pinch Amazon Prime Day. It did tally up against the blockbuster arena successful July 2025. Gunther said the Prime Day effect doesn't look to person had an outsize effect connected TikTok's maturation successful marketplace share, though, which has been comparatively linear since its launch.

"Given that TikTok Shop was astatine zero a fewer years ago, these moves are really, really big," Gunther said. "I don't cognize if I've seen thing for illustration this."

TikTok's US unit walk is still a acold outcry from Amazon's, which hovers astatine astir 35% successful US marketplace stock depending connected the month. It's besides driving little than a 3rd of the online walk of Walmart, which falls astatine astir 7% marketplace stock successful the US.

That said, TikTok has gradually been creeping up connected smaller competitors arsenic its level has matured.

The institution has invested heavy successful its e-commerce business since it launched successful 2023, building retired a afloat shipping and logistics offering, onboarding hundreds of thousands of sellers, and training creators connected really to beforehand equipment successful videos successful speech for a commission.

TikTok's maturation successful US walk past 4th was driven successful portion by a group of powerfulness users, according to Consumer Edge's analysis.

TikTok Shop buyers who made 20 aliases much purchases successful the 2nd 4th of this twelvemonth drove astir 30% of the wide spending connected the platform, while representing 5% of the full organization of buyers.

Older shoppers are besides helping TikTok prime up sales. The fastest-growing property demographic by year-over-year walk successful the 2nd 4th was shoppers complete the property of 35.