What happens to TikTok Shop if TikTok is banned on Sunday? Here's what we know

What happens to TikTok Shop if TikTok is banned on Sunday? Here’s what we know

Posted by Admin January 17, 2025 Shopping

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The future of TikTok remains murky as the U.S. Supreme Court considers whether to uphold a law that could ban the social media app due to national security concerns starting Sunday. But there’s another element that’s in flux: TikTok Shop.

Officially launched in the U.S. in 2023, TikTok Shop is the platform’s e-commerce feature, allowing users to buy and sell products and services directly through the platform.

Retailers dependent on sales through TikTok are worried about the economic impact, while consumers fear for their delivery status if the app goes dark.

In its launch year, TikTok Shop quickly became the fourth most popular social e-commerce platform in the U.S., with 8.2% of online shoppers using it, according to Capital One Shopping Research. That same report reveals that in the final months of 2023 alone, Americans spent approximately $7 million daily on the app.

Here’s what we know about how the ban will affect TikTok Shop.

Will TikTok Shop go away if TikTok is banned?

The future of TikTok Shop remains uncertain, and representatives for the social media giant did not immediately respond with comments about how the ban could impact TikTok Shop when contacted by USA TODAY on Thursday.

What will happen to TikTok Shop orders that have already been placed but not delivered?

As for users who have placed TikTok Shop orders and are awaiting an order to be processed or an item to be delivered, it is uncertain how the ban could impact these orders, too.

Joseph Rowan, host of “FAKD Podcast,” which analyzes the counterfeit business economy, has advised users who placed orders through TikTok Shop but have not yet received their shipments to save any contact information from the sellers. If the social media app goes dark on or after Sunday, users may still be able to reach the businesses from which they ordered.

How will the TikTok ban affect small business owners?

Aaron Schekorra is the owner of Own Your Pride, an online shop that specializes in LGBTQ+ merchandise. He said TikTok Shop makes up about 40% of Own Your Pride’s sales, and in October 2023 alone, he made just over $50,000 through the platform.

Schekorra said he predicts TikTok will stay around for the long haul and will not be banned, but “every day we get closer to the ban, it feels less and less like luck is in my favor.”

The owners of MNJ Sales, an online shop specializing in non-slip beanies and durags, shared in a December TikTok video that 80% of the shop’s revenue is generated through TikTok Shop.

“As a small business and small Black-owned business, it is very, very trying times right now,” one of the owners said in the video, which had two million views on Thursday.

Bask and Lather Co., another Black-owned small business tspecializing in hair care products, has also spoken out about the ban, informing its followers that it is looking to sell out all of its products on TikTok Shop.

“As a brand that has had several products go viral over here on TikTok, so much of our revenue comes from here, and we’re super thankful for everyone and their support over the years,” a moderator of the business’ account said in a December video. “But if TikTok does end up getting banned … things can get real scary over here at Bask and Lather.”

MNJ Sales nor Bask and Lather Co. immediately responded for comment about the ban when contacted by USA TODAY on Thursday.

Which other platforms are sellers and consumers turning to?

In preparation for the potential ban on Sunday, TikTok Shop sellers are pivoting to other e-commerce sites. Schekorra said he has begun selling Own Your Pride products on Etsy, which is getting a little traction.

Shraysi Tandon, the CEO of Kidsy, a re-commerce company that specializes in baby and children’s products, said the company has been using TikTok Shop since November 2024, and about 20% of the company’s revenue is generated from it.

Ahead of the ban, Tandon said Kidsy is exploring other marketing channels like YouTube, Pinterest and Reddit to collectively launch on all three.

Google Shopping, in addition to Facebook and Instagram Shops are other social e-commerce options, but Tandon said that they “don’t drive the same virality, stickiness and engagement that TikTok has.”

Greta Cross is a national trending reporter at USA TODAY. Follow her on X and Instagram @gretalcross. Story idea? Email her at gcross@usatoday.com.