ByteDance-owned TikTok’s new shopping platform, Amazon.com Inc.’s AMZN challenger, brings an array of budget-friendly products — but lurking beneath the surface are concerns of authenticity and data security.
What Happened: TikTok, the short-form video-making platform, is taking on Amazon with its Shop section. However, many products on this platform come from China because TikTok’s parent company, ByteDance, is based there, and it has raised some concerns about users’ data and privacy, reported Bloomberg.
See Also: Most Dangerous TikTok Challenges Till Date: A Grave Warning Against Reckless Social Media Trends
What Prompted Such Concerns: Unlike TikTok’s renowned personalized video feed algorithm, the Shop appears plagued by issues reminiscent of Amazon’s early days, such as overwhelming product choices and poorly spelled brand names. The product names themselves often seem tailored for algorithms rather than human shoppers.
The marketplace heavily emphasizes low prices, highlighting coupons, free shipping, and even creating a sense of urgency by displaying how many times a product has been sold. However, the authenticity of some of these products is questionable.
For instance, the Shop’s feed highlighted a highly promoted product that has gained popularity on TikTok: the COSRX Advanced Snail 96 Mucin Power Essence. A seller was selling it for $7.99, a discount from the original $39.
However, these numbers don’t match up with the $25 price tag listed on COSRX’s official website, the report noted.
Additionally, the TikTok seller stated that the product was made in China, whereas COSRX products typically indicate they are manufactured in Korea on their packaging.
Even though TikTok says it has over 200,000 U.S. merchants selling legit stuff, some Chinese brands booted off Amazon for shady reviews are also on the platform, the report highlighted.
Why It’s Important: Last month, it was reported that TikTok was planning to ban links to external e-commerce sites, like Amazon, pushing users towards TikTok Shop. TikTok Shop is reportedly expected to incur a loss exceeding $500 million in the U.S. this year.
It is pertinent to note that despite the slow traction of TikTok Shop in the U.S., its daily consumer spending has risen from $500,000-$1 million in June to $3-$4 million currently.
The company anticipates this figure to surpass $10 million by year-end.
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