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Image Source: Visual China

Beijing, July 7 (TMTPost) – TikTok’s parent company ByteDance is reportedly planning to abolish its plan to replicate the success of e-commerce livestreaming back in China in overseas markets.

TikTok has already suspended its plan to promote e-commerce livestreaming in a number of overseas markets, including the United States, according to Financial Times. TikTok"s e-commerce livestreaming operation in Britain is so far safe from shutdown.

TikTok’s has been under scrutiny for its toxic corporate culture in overseas markets, which might be one of the reasons why the company is failing to replicate the success of e-commerce livestreaming in the West. Influencers on TikTok are struggling with making money on the platform while products that are being sold on the platform have quality issues.

The short video platform also faces an immature overseas e-commerce livestreaming market as well. The lack of adequate infrastructure, such as logistic services, also contributed to TikTok’s failure.

E-commerce livestreaming is very popular in China and generates a lot of profits for Douyin, TikTok’s sister app in China. TikTok officially started to promote e-commerce livestreaming in overseas markets in 2021, rolling out TikTok Shop. TikTok Shop allows influencers on TikTok to promote and sell products for brands through livestreaming. TikTok takes a commission from a transaction.

TikTok has been talking about its global expansion plan for TikTok Shop, hoping to enter European countries like Spain, France, Italy and Germany in the first half of 2022. TikTok is also planning to expand TikTok Shop’s service into the United States this year.

TikTok’s team has already talked to e-commerce platforms, brands, MCN organizations and influencers in the United States to promote TikTok Shop, according to a news report from Guixingren. The plan might be halted.

An insider at TikTok said that the company decided to scrap the expansion plan because the market is not mature.