The US banned TikTok and with that, TikTok Shop is banned. This could be a win for people but it is also a loss for small businesses. Here’s why.
The US appeals court just upheld a ban on TikTok Shop. Since starting in September 2023, TikTok Shop helped brands like e.l.f. Cosmetics and Ninja Kitchen sell more products than ever by using fun, short videos.
Shoppers love how TikTok shows them items they actually want, like clothes, skincare, and even Crocs.
People like Jasmine Whaley say it’s faster than Amazon and makes shopping exciting.
But TikTok Shop might not stick around. New U.S. rules could force TikTok’s parent company to sell it or shut it down, leaving shoppers and brands wondering what’s next.
Here’s what the ban means for TikTok Shop:
- TikTok Shop turned brands like Goli into overnight sensations. A simple gummy vitamin video could get millions of views and thousands of sales. If TikTok is banned, small businesses like these could lose their magic wand.
- TikTok Shop made it easy to sell directly to your audience. Just one creative post could turn a small business into a household name. Without it, brands will have to work harder to find their people.
- Pink Stuff became a viral hit thanks to TikTok. Who knew watching someone clean a stove could be so satisfying? A ban might leave brands like this stuck in the dust.
- TikTok Shop was a place where trends exploded. Things like skincare tools, heatless curls, or funky lamps could sell out overnight. Without it, brands lose a powerful trendmaker.
- Stanley Cups went from practical water bottles to TikTok royalty. The platform made them cool, not just useful. If TikTok is banned, brands like Stanley will lose a space where they feel fresh and exciting.
- TikTok Shop gave everyone a fair shot at success. It didn’t matter if you were a big brand or just one person packing orders in a basement. A ban could bring us back to a world where only giants win.
Here’s what it means for brands:
- Crocs were “uncool” before TikTok made them iconic again. Now, they’re practically a wardrobe staple for Gen Z. If TikTok disappears, brands might lose their chance at unexpected comebacks.
- Niche brands have thrived on TikTok. Spicy honey? Weird ice cube molds? TikTok turned quirky into cool. Without it, these brands might struggle to find such a perfect audience.
- TikTok made ads feel like fun content. You didn’t even realize you were watching a product pitch until you wanted to buy it. A ban might make ads feel stuffy and corporate again.
- Rare Beauty has exploded because TikTok loves authentic, feel-good brands. Users want more than just a product—they want a story. Without TikTok, brands like this might have to fight harder to stay relatable.
- Alani Nu used TikTok to make fitness fun and trendy. Videos of colorful energy drinks and easy protein recipes got millions of views. A ban could force fitness brands to rethink how they reach their audience.
- TikTok’s demo videos made shopping interactive. You could see someone actually trying out the product, not just talking about it. That hands-on feel might be hard to replace.
These are some options brands should consider:
- Brands will likely pour money into Instagram Reels. The platform can mimic TikTok’s format, but it’s not quite the same. It might take time for brands to figure out how to make it feel natural.
- YouTube Shorts could become the next big thing for selling products. Imagine unboxing videos and how-tos but shorter and snappier. Brands will need to adapt quickly to keep up.
- Some brands might take matters into their own hands by creating custom apps. Imagine a TikTok-like app just for shopping—how cool would that be? It could change how we buy things online.
- Influencers could move their magic to Amazon Live. Imagine your favorite creator showing off the latest gadgets or beauty hacks in real-time. It might not be TikTok, but it’s a solid backup.
- Social media managers might turn back to email marketing. Sure, it’s not as exciting, but it works. Expect to see your inbox filling up with creative pitches soon.
- Small businesses might lean heavily on Etsy or Shopify. These platforms let them keep some of that TikTok energy, but it’s definitely more work. Let’s hope they find a way to thrive.
Still, TikTok Shop will be missed if it is banned because:
- TikTok Shop made shopping feel instant and fun. One scroll and you’d find yourself buying a gadget you didn’t even know existed. A ban could take away this impulsive excitement.
- It helped brands turn trends into instant sales. Lip oils or fun kitchen tools could sell out in hours. Other platforms just can’t keep up with that speed.
- TikTok’s algorithm knew exactly what you wanted, sometimes before you did. That made shopping feel almost magical. A ban might mean less “perfect timing” in finding what you love.
- Shopping on TikTok felt like discovering hidden treasures. Whether it was a cleaning hack or a must-have gadget, you felt in the know. Losing that element of surprise would be a real bummer.
- TikTok Shop worked for everyday products too, like cleaning supplies or kitchen tools. Suddenly, boring things felt cool. Without it, those everyday wins might be harder to find.
- It connected brands to Gen Z like nothing else. From skincare to sneakers, TikTok was where they found the next big thing. No other app has nailed that connection yet.
The TikTok Shop ban is especially difficult for Small Businesses:
- TikTok Shop was a lifeline for small businesses. Even with a tiny budget, you could reach millions of people. Losing it might make starting a new brand feel impossible.
- Handmade or niche products found their perfect audience on TikTok. A crocheted bag or a homemade candle could go viral in hours. Other platforms might not give small businesses the same love.
- Startups could quickly test new ideas on TikTok. Feedback came fast, and you knew if your product was a hit. A ban could make it harder for entrepreneurs to get that quick validation.
- TikTok gave everyday creators a chance to shine. A small soap brand could feel just as big as a household name. Losing that even playing field would be a big loss.
- TikTok turned selling into storytelling. You weren’t just buying a product; you were buying into someone’s dream. Without it, brands will have to work harder to connect emotionally.
- TikTok Shop pushed creativity to the forefront. Brands that thought outside the box could go viral overnight. A ban might mean less fun and more “safe” marketing campaigns.
We will see how the ban plays out. Personally, it may be a good thing for consumers to spend less time on social media. But from a business perspective, it will remove a new sales channel that gives small, niche brands a more level playing field.