TikTok Shop overtakes Target and others in U.S. online sales for July

Consumer Edge’s analysis of credit-card transactions indicates TikTok Shop accounted for about 2% of U.S. online retail sales in July, eclipsing the e-commerce volumes of Target, Costco and The Home Depot. This marks a rise from roughly 1.2% a year ago and reflects a “massive” market-share gain, according to Michael Gunther of Consumer Edge. TikTok has rolled out a Prime-style membership with free shipping and offers managed services to help sellers create video ads.

The platform recorded over $500 million in sales during last year’s Black Friday-Cyber Monday period and has attracted major brands such as Samsung, Disney and Ralph Lauren. A small cohort of power buyers—those making 20 or more purchases in Q2—generated about 30% of total spend, while shoppers over 35 showed the fastest year-over-year growth. Despite the surge, TikTok’s share remains far below Amazon’s roughly 35% and Walmart’s about 7% in the U.S. market.