TikTok’s ambition to become a global e-commerce powerhouse is encountering significant headwinds. While the short-form video app has successfully turned Douyin, its Chinese counterpart, into a $490 billion shopping giant, its push for TikTok in-stream shopping in other markets is proving far more complicated.
Even with rapid growth in the United States—where gross merchandise value (GMV) reportedly rose 120% in the past year—TikTok’s broader commerce strategy continues to struggle due to cultural, operational, and financial challenges.
Southeast Asia Friction: TikTok and Tokopedia Face Growing Pains
After acquiring a majority stake in Tokopedia, an Indonesian e-commerce platform, TikTok attempted to unify the two brands. The company encouraged Tokopedia sellers to adopt TikTok’s signature style—replacing traditional product listings with video-driven content designed to engage viewers. However, this pivot has not landed well.
According to reports, many Indonesian sellers have experienced a decline in traffic, while simultaneously being hit with higher fees and rising ad costs. These added expenses have forced some businesses to leave the platform entirely, undermining TikTok’s regional growth.
TikTok’s struggle here illustrates a deeper truth: what works in one market—particularly China—doesn’t always translate elsewhere. Sellers in Indonesia were accustomed to conventional listings and SEO-based discoverability. Switching to algorithmic video-based exposure has introduced uncertainty, leading to dissatisfaction across the seller base.
“The aggressive migration to TikTok-style selling content on Tokopedia has created confusion among traditional e-commerce vendors,” an industry analyst told .
Western Resistance: Social Shopping Still Feels Foreign
TikTok’s e-commerce success in China is largely driven by the mainstream acceptance of live-stream shopping. On Douyin, millions tune in daily to watch influencers pitch products in real time. This model, however, has not gained the same popularity in the West.
In the U.S. and Europe, consumers still favor dedicated e-commerce platforms like Amazon, Walmart, or eBay. Shopping within a social media app remains a novelty—one many users haven’t yet fully embraced.
TikTok has rolled out TikTok Shop in 17 global markets, including the U.S. and the UK. Despite the exposure and hype, many users continue to use TikTok for entertainment—not for purchases.
E-Commerce Isn’t Free Anymore: Visibility Now Comes at a Price
Another pressing challenge stems from TikTok’s shift in strategy. Initially, TikTok Shop gave sellers generous free reach through its For You feed, helping even small accounts go viral. But that era is ending.
Now, sellers report that organic reach has dropped significantly. To maintain visibility, businesses must invest in advertising. This mirrors a broader trend seen across social media platforms—where pay-to-play is becoming the new norm.
As detailed by Business Insider, merchants are now required to invest heavily in TikTok ads just to drive the same traffic they once received for free. This transition is forcing smaller sellers to reconsider whether TikTok is still a viable long-term marketplace.
Staff Cuts and Strategic Setbacks
Despite strong GMV performance in the U.S., TikTok’s internal numbers tell a different story. The company has reportedly missed several global e-commerce targets. As a result, it has undergone multiple rounds of layoffs, with the most recent one occurring in July 2025.
Departments hit hardest include those responsible for e-commerce fulfillment and seller support. These layoffs reflect a significant recalibration of TikTok’s e-commerce expectations—likely prompted by slower-than-expected adoption in Western and Southeast Asian markets.
These cutbacks were also confirmed by , which noted the layoffs followed missed sales benchmarks and internal restructuring.
China vs. the Rest: The GMV Gap
The scale of TikTok’s global commerce operations still lags far behind its Chinese counterpart. While Douyin generated nearly $490 billion in GMV in 2024, TikTok’s worldwide GMV stood at just $33 billion. Even with U.S. growth exceeding 100% year-over-year, TikTok has a long way to go to replicate its Chinese success.
Part of this disparity is rooted in infrastructure. Douyin has had years to refine its live-stream shopping model, build logistical networks, and train influencers. TikTok, on the other hand, is still navigating cultural adoption, platform integration, and regulatory concerns in each new market it enters.
Cultural Differences Cannot Be Ignored
What sets the U.S. and Europe apart from China is not just infrastructure—it’s behavior. Consumers in the West often approach social media and e-commerce separately. They scroll Instagram or TikTok for entertainment and visit Amazon or Target when it’s time to shop.
The expectation that users will seamlessly convert from viewers to buyers is not yet reality. This is especially true for older demographics, who may find in-app checkout interfaces clunky or intrusive.
Moreover, live-stream shopping—which is central to Douyin’s success—remains a niche trend outside Asia. Until consumer behavior shifts more broadly, TikTok’s model will continue to face an uphill battle.
Where TikTok Goes From Here
Despite the growing pains, TikTok has not backed down. It continues to invest in its e-commerce ecosystem, launching initiatives like its “Deals for You” campaign and expanding operations to markets like Japan.
The company appears committed to refining its approach—though future success likely hinges on localizing its strategies. It may also need to temper internal expectations and reevaluate what success looks like in non-Chinese markets.
Key Takeaways for Brands and Marketers
If you’re a brand or seller looking to capitalize on TikTok’s potential, here are some strategic insights:
- Adapt your content: Embrace short-form, creator-led videos. Product pages alone won’t work.
- Budget for ads: Relying on organic traffic is no longer sustainable. Paid promotions are now critical.
- Diversify your channels: Don’t place all your e-commerce hopes on TikTok. Use it as one part of a broader strategy that includes Amazon, Shopify, and physical retail.
Final Thoughts
TikTok’s journey into global commerce is far from over, but it’s already clear that TikTok in-stream shopping faces steeper challenges outside of China. From seller dissatisfaction in Indonesia to slower adoption in the U.S. and Europe, the road ahead is complex. Yet with strategic adjustments and continued experimentation, TikTok still has an opportunity to redefine how social commerce functions worldwide.
