TikTok Shop Sellers Fear ‘Doomsday’ as US Ban Looms Ahead

With a potential TikTok ban on the horizon, sellers are scrambling for alternatives and contingency plans

TikTok Shop Sellers Fear ‘Doomsday’ as US Ban Looms Ahead
TikTok Shop Sellers Fear ‘Doomsday’ as US Ban Looms Ahead

New York: TikTok might soon go dark in the US because of a divest-or-ban law. Merchants who depend on its e-commerce tool, TikTok Shop, are in a frenzy trying to figure out what to do next. Some are even stopping warehouse shipments and checking out other apps like Flip and Instagram Live.

The clock is ticking, and sellers are feeling the heat. TikTok Shop has been a hit in the US, raking in millions each month. Last year, they even hit $100 million in sales on Black Friday alone. But all that could vanish soon. TikTok has warned it will “go dark” after January 19 unless something changes. They’ve asked the Supreme Court for more time, but experts aren’t optimistic.

Many sellers are already pulling back. A TikTok Shop agency partner mentioned that a lot of merchants are hitting pause on their plans while they wait for the Supreme Court’s decision. Some have even stopped sending free samples to creators and are holding off on shipping products to US warehouses. It’s a tough spot, and some are even trying to change their contracts to prepare for the worst.

Interestingly, the TikTok Shop team hasn’t said much about a possible shutdown, acting like everything is normal. Meanwhile, sellers are exploring other platforms like Flip, Instagram Live, Amazon Live, and YouTube Shopping. Some are even looking to sell in other countries where TikTok Shop is still active.

Jake Bjorseth, who runs a TikTok Shop partner agency, called the situation “doomsday prep.” He said they’ve been planning for this, but it’s still unclear where brands and creators will go if TikTok shuts down. It’s going to be a bumpy ride for those who rely on it.

Nicole Rechtszaid, co-CEO of Ghost Agency, said they’ve also paused new TikTok Shop projects. Their revenue is closely tied to TikTok, and if it goes away, they might have to merge with another company. She’s trying to shift clients to other platforms, but it’s tough to match TikTok Shop’s unique features.

While some businesses are deep into planning, others are just trying to make the most of TikTok while it lasts. Lindzi Shanks, co-founder of XO Marshmallow, said they’re continuing as usual until they hear otherwise. They’ve always diversified their marketing efforts, so they’re not too worried.

Even as sellers explore other platforms, replacing TikTok Shop won’t be easy. Other apps have their strengths, but none offer the same all-in-one solution for social commerce. If TikTok gets banned, it could set the industry back years.

Michael Herling, who sells hats on TikTok, said most of his business comes from the platform. If it shuts down, he plans to switch to Instagram and Facebook for advertising. He’s feeling pretty down about it, knowing that a ban could mean the end of his business.

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