If the future of e-commerce is a feast of traffic, TikTok Shop now holds the key to the treasure. While traditional e-commerce giants struggle with growth, TikTok Shop has been expanding globally at an astonishing pace. The 2025 rankings reveal TikTok Shop as the world's fifth-largest e-commerce platform, approaching $100 billion in GMV with over 400 million active users—a milestone that challenges traditional e-commerce models.
The New Contender: Five Years to the Top
In 2021, when TikTok Shop first ventured into e-commerce, few predicted its current success. In less than five years, it has joined the $100 billion club through explosive growth and precise localization across 17 distinct markets.
Global Expansion: A Calculated Approach
TikTok Shop's globalization strategy serves as a textbook case. Rather than rapid expansion, it adopted a measured approach, now operating in the U.S., U.K., Germany, France, Spain, Italy, Ireland, Indonesia, Thailand, Vietnam, Malaysia, Philippines, Singapore, Mexico, Brazil, Japan, and Saudi Arabia—balancing mature market stability with emerging market growth.
U.S. Market: Unstoppable Momentum
The U.S. represents TikTok Shop's core battleground. Since launching in September 2023, GMV surged 400% year-over-year in 2024, maintaining 108% growth in 2025. During Black Friday/Cyber Monday, GMV exceeded $500 million with nearly 50% more buyers.
Remarkably, short videos drove 40% of U.S. GMV, with 70-80% from organic traffic—validating the "content + commerce" model. In 2025, brands and creators streamed over 8 million hours, boosted by celebrity participation from Nicki Minaj, John Legend, the Kardashians, and others.
The platform now spans 750+ categories with 70 million SKUs, hosting major brands like Estée Lauder, L'Oréal, Samsung, and Gap—shedding its niche reputation to become a full-fledged e-commerce player.
Southeast Asia: The Strong Foundation
TikTok Shop's earliest expansion region remains crucial. Now Southeast Asia's second-largest platform (after Shopee), it outperforms industry growth rates. During 2025's "12.12" sales, cross-border GMV grew 270% year-over-year, with Indonesia leading at $6 billion GMV in H1.
Europe: Localization Drives Success
Covering six European nations, TikTok Shop achieved 100%+ GMV growth in 2025 by adapting to local habits. Payday-driven spending doubled sales peaks in EU countries, while the U.K. saw 173% category growth—especially in baby products (187%), apparel (145%), and home goods (144%).
Latin America and Japan: Rising Stars
Brazil's GMV grew 25-fold in its first three months, while Japan achieved 20-fold growth in four months—becoming TikTok Shop's fastest-growing region. Japan's strong performance in niche categories like collectibles and crafts demonstrates content-commerce adaptability across cultures.
Content + Commerce: Reshaping Retail
TikTok Shop's growth confirms the power of blending entertainment and shopping. Future Market Insight projects global social commerce reaching $220 billion by 2035 (30% CAGR), while Statista reports one-third of shoppers discover brands via social media—rising to 60% among Gen Z.
Traditional Players Adapt
E-commerce giants now embrace this model: Amazon launched "Inspire" shopping videos and partnered with social platforms; Shopee expanded live streaming; eBay integrated Facebook shopping; Walmart created its creator platform. These moves acknowledge content-commerce as retail's new driving force.
Challenges Ahead
Despite success, TikTok Shop faces hurdles: regulatory scrutiny on data privacy, intensifying competition, and balancing entertainment with seamless shopping experiences. Its ability to navigate these challenges will determine whether it can ultimately redefine global e-commerce.