According to a recent Wall Street Journal report, the social-media platform is currently in the process of establishing a network of warehouses and fulfillment operations centers to handle tasks like inventory management and delivery for independent merchants on its platform.
The same source adds that this will put the social-media app in direct competition with retailers such as Amazon.
Unlike Amazon, however, TikTok will outsource its logistics services to companies like ShipBob and Newegg, aiming to streamline the process and compete with e-commerce giants such as Amazon, Target, and Walmart.
This strategic move aligns with TikTok’s goal of attracting more merchants, enhancing sales, and establishing credibility in the competitive e-commerce landscape, despite potential challenges like quality control and susceptibility to scams.
According to techinasia.com, TikTok recorded a gross merchandise value of 4.4 billion USD last year, a whopping 363% growth compared to the year before.