Retailers and brands told CNBC they continue to invest in TikTok Shop even though a potential Jan. 19 ban grows nearer.
Sporting a sparkly dress and a Santa hat atop her distinctly pink hair, Sarah Potempa stood in front of her smartphone at her hair-care company’s warehouse in Waukegan, Illinois. It was time to go to work.
Potempa is a celebrity hairstylist who goes live on TikTok multiple times a week. During “the packing show,” as she calls it, Potempa livestreams herself as she packs up orders of her viral Beachwaver curling iron for six to eight hours at a time.
The stream on Nov. 20 had a party atmosphere, with Potempa taking breaks to dance to “In Da Club” by 50 Cent in between shipping out orders. To the more than 1,000 TikTok users who typically tune in for Potempa’s shows, this is entertainment and shopping all at once.
Beachwaver is part of a growing influx of retailers that are flocking to TikTok Shop, the video app’s shopping service. TikTok Shop launched in September 2023 as a way for users to purchase products without leaving the app, and since then, the China-owned app has emerged as a viable alternative for retailers looking to diversify their e-commerce business from Amazon.
Via a dedicated Shop tab, retailers big and small promote products of all kinds, ranging from eyeshadow palettes, phone chargers, detox teas, treadmills and more. On TikTok, retailers typically offer generous coupons and free delivery within a few days. Shoppable posts, which look like normal videos but are ads for products sold in TikTok Shop, frequently appear in TikTok’s main video feed, known as the “For You” page. Those posts allow users to purchase products without exiting their For You feed.
On Potempa’s show, shoppers race to place an order to get a 50% discount on Beachwaver products and free add-ons to their order like face washes or lipsticks, along with the chance to have their username read aloud by Potempa while she packs their order on screen.
TikTok’s e-commerce push comes at a precarious moment for the company.
