TikTok Expands In-Stream Shopping Push to Latin America

It may be facing existential challenges in the U.S. and Canada, but TikTok is still pushing ahead with its development in other regions, with the platform set to launch TikTok Shop in Mexico this week.

The expansion will be the first step in a broader push into Latin America, where TikTok’s hoping to spark the next stage of its broader in-stream shopping project.

As reported by MediaPost:

“TikTok Shop first started inviting merchants to open stores on the platform in Mexico in January ahead of the start of transactions in February. These merchants, with a locally registered entity, were eligible to sign up and be exempt from commission fees for the first 90 days of commercial activity.”

TikTok’s been pushing to make in-stream shopping a thing, following the success of its in-app shopping push in China, with the local version of TikTok (called “Douyin”). Its expanded shopping initiatives in its homeland have become the key money-maker for the app, with Douyin bringing in around $500 billion in sales last year.

By comparison, TikTok generated around $4 billion in total sales in 2023.

You can see, then, why TikTok and parent company ByteDance see so much potential. And while its shopping options haven’t yet caught on in Western nations the way they have in China, there are indicators that TikTok shopping could become a thing, particularly in some regions.

Last year, TikTok reported a 3x increase in sales on Black Friday, with live-stream sales (a key element in China) driving significant interest, while TikTok has also seen rising interest in its in-stream shopping options in South East Asian markets.

So there are indicators of opportunity, and TikTok’s hoping that Latin American shoppers will also be interested, which could help it to drive more income from the app.

Which it may well need, especially if it is eventually banned in the U.S.

Technically, right now, TikTok is already banned in America, though the Trump Administration is working on a new deal to keep the app active for Americans, while also meeting the requirements of the “Protecting Americans from Foreign Adversary Controlled Applications Act”.

Trump has appointed Vice President J.D. Vance to take care of a U.S. TikTok deal, with the ideal outcome eventually set to see TikTok in some form of co-ownership with a U.S. investor and its Chinese parent.

Though there’s still some way to go on that, and with only 75 days to find a solution (actually, 52 days now), there is a real chance that TikTok could be cut off from its 170 million U.S. users.

Which will put more emphasis on its expansion into other markets, meaning that its Latin American market expansion is timely.

TikTok says that sales of some goods will be restricted in its Mexico Shop business, including jewelry, healthcare, maternity, and baby products.

The new shops will go live this week.