TikTok Shop officially launched in Brazil on Thursday, May 8, 2025, marking a significant entry of the popular short-video app into the largest e-commerce market in Latin America. This new feature allows users to discover and purchase products directly within the app, a move that aligns with the growing trend of social commerce, which merges entertainment with shopping.
Initially, the TikTok Shop will feature products in five categories: fashion, beauty, health, electronics, and sports. Among the standout items are the popular Stanley bottles, which have gained a significant following among content creators on the platform. The launch is expected to generate up to R$ 39 billion in gross merchandise volume (GMV) by 2028, capturing between 5% and 9% of the Brazilian e-commerce market, according to estimates from Santander and Itaú banks.
With the TikTok Shop, users can interact with products in four distinct ways: through organic content feeds, live broadcasts from influencers or brands, a storefront on brand profiles, and a dedicated TikTok Shop tab that will be rolled out in the coming months. This tab will showcase products based on the user’s viewing habits, enhancing the shopping experience by making it more personalized.
The TikTok Shop integrates seamlessly into the app, allowing users to purchase items while enjoying videos. This "discovery shopping" model encourages impulsive buying, as users are exposed to products while engaged with content they enjoy. TikTok has also implemented a commission structure for sales, offering lower rates compared to other e-commerce platforms, making it attractive for both sellers and buyers.
ByteDance, TikTok's parent company, experienced a remarkable growth trajectory, closing 2024 with a revenue of US$ 155 billion, a 29% increase from the previous year. The international revenue surged by 63%, reaching US$ 39 billion, and TikTok Shop alone generated approximately US$ 32.6 billion in GMV since its launch in Asia in 2021. The platform's success in the United States, contributing about US$ 9 billion to the overall GMV, sets a promising precedent for its operations in Brazil.
Brazil is now the third-largest market for TikTok globally, boasting over 111 million active users. The platform's user engagement is significant, with 78% of Brazilian users accessing the app daily. In fact, a recent report indicated that 36% of users purchased products after seeing them in creator videos in 2024, demonstrating the effectiveness of influencer marketing on the platform.
As TikTok Shop expands its presence, it also aims to support local sellers and businesses across Brazil. The company has invested in security features and support systems to ensure a reliable shopping experience. A learning center for sellers will provide educational resources and tools to help them succeed in the marketplace.
The TikTok Shop's affiliate program allows creators to earn commissions on sales generated through their content. However, participation is limited to influencers over 18 years old with at least 5,000 followers and who have posted content within the last 180 days. This initiative not only incentivizes creators but also democratizes the e-commerce landscape, enabling smaller influencers to promote products and earn rewards.
In addition to the open collaboration model, where all qualified creators can request free samples of products, TikTok also offers targeted collaboration, allowing brands to invite specific influencers to promote their products for a personalized commission. This flexibility caters to different marketing strategies and helps brands effectively reach their target audiences.
As TikTok Shop prepares to compete against established e-commerce giants like Mercado Livre and Magazine Luiza, it faces a challenging yet promising landscape. The Brazilian e-commerce market is projected to grow at an average rate of 16% per year until 2027, indicating a ripe opportunity for TikTok and other emerging platforms like Shopee and Shein, which have already made significant inroads into the market.
Recent reports suggest that Shopee surpassed Shein in GMV in 2023, reaching about R$ 20 billion, thus becoming the second-largest e-commerce platform in Brazil. Meanwhile, Shein is undergoing a strategic pivot to localize its operations, with its local marketplace already accounting for 60% of its sales. The rise of these platforms highlights the increasing competition in Brazil's e-commerce sector, particularly as TikTok Shop enters the fray.
As part of its expansion strategy, TikTok Shop is not only focused on large brands but also emphasizes support for small and medium-sized businesses. This approach aligns with the platform's goal of fostering a diverse marketplace where all sellers can thrive. Brands like Natura, Boticário, and C&A are already among those listed on the TikTok Shop, showcasing a blend of local and global offerings.
In conclusion, TikTok Shop's arrival in Brazil represents a major shift in the way consumers engage with e-commerce. By merging content creation with shopping, TikTok aims to revolutionize the retail experience, making it more interactive and enjoyable for users. As the platform continues to grow and evolve, it will be interesting to see how it adapts to the unique demands of the Brazilian market and whether it can achieve the ambitious goals set for its operations.
