A recent report from The Information indicates that TikTok is gearing up to implement a prohibition on external e-commerce links, including platforms like Amazon. This strategic move is believed to be an attempt by TikTok to channel users toward its own TikTok Shop if they wish to make purchases based on items they come across within the app.
The same report highlights that TikTok Shop is anticipated to incur a loss exceeding $500 million within the United States this year. This substantial financial setback reflects the company’s significant investments in various areas, such as expanding its workforce, establishing a robust delivery infrastructure, and financially supporting merchants who provide discounts and free shipping options.
Should this ban on external e-commerce links be enforced, TikTok would effectively curtail creators’ ability to endorse products like household goods and furniture that are accessible on popular e-commerce platforms, including Amazon, and other similar online marketplaces.