TikTok's Growth Slows Down in 2023 Amid Concerns Over TikTok Shop

The growth of popular video sharing platform TikTok slowed down, prompting concerns about its e-commerce business, TikTok Shop, according to a report.

In 2023, TikTok was the most downloaded and highest-grossing app, but not the most utilized. Facebook, WhatsApp, Instagram, and Messenger dominated, with Facebook having the most monthly users. Market intelligence company Sensor Tower reported decreased monthly active user growth from 12% year-over-year each quarter in 2022 to 3% in 2023 for the Chinese-owned social media platform, as per a TechCrunch report.

By transforming video content into monetary sales, TikTok Shop aimed to take advantage of the platform's influence on consumer behavior, which is best demonstrated by the widely used "TikTok made me buy it" meme. The platform experimented with in-app shopping sections like "Trendy Beat" in the UK, introduced an affiliate program for creators, and officially launched TikTok Shop in the U., featuring brands such as PacSun, Revolve, Willow Boutique, and KimChi Chic.

Moderation Challenges

TikTok Shop, launched in September in the US, combines shopping with short-form video and live broadcasting to make billions in 2024. However, challenges arise as the platform struggles to moderate its 200,000 sellers. Violation points for infractions lead to consequences ranging from product blocks to outright bans, Business Insider reported.

Sellers encounter difficulties with the appeal process, with chat support often deemed ineffective. Those with dedicated contacts or working through approved agencies experience faster resolution. While TikTok enforces policies using a combination of technology and human moderation, automated tools have faced criticism for being overly aggressive. Comparable e-commerce platforms like Amazon, Etsy, and Shopify also utilize AI in their moderation processes.

Amazon Rival

TikTok Shop has garnered popularity among users who appreciate its algorithm's ability to predict preferences, creating a unique digital shopping experience. According to Bloomberg, TikTok Shop users liken it to a digital farmers' market or craft fair, setting it apart from platforms like Amazon and Etsy. Impulse purchases driven by personalized recommendations from trusted sources have made the platform "dangerous for their bank accounts."

The app facilitating US merchants to open TikTok accounts has seen over 500,000 downloads, with the product variety expanding daily, encompassing gardening tools, cosmetics, espresso machines, and more. TikTok Shop's simple technology is making it a go-to platform for a variety of merchandise.