TikTok’s e-commerce aspirations in the U.S. have hit a roadblock. ByteDance, TikTok’s parent company, has reportedly ramped up pressure on its U.S. team following a failure to meet 2024 sales targets.
Despite impressive figures in some areas, the team missed its ambitious goal of $17 billion in sales. Now, the U.S. division is facing a crackdown, with ByteDance instituting stricter performance reviews, a more demanding office attendance policy, and even performance improvement plans (PIPs) for employees who haven’t met the mark.
ByteDance leadership, based in China, expressed dissatisfaction with TikTok Shop’s U.S. performance during a global all-hands meeting in February 2025. Bob Kang, ByteDance’s head of e-commerce, singled out the U.S. team as underperforming.
According to Business Insider, which cites one source who attended the meeting, Kang “put everyone on blast” for failing to meet expectations. This frustration comes after TikTok Shop struggled to replicate the success of its sister app, Douyin, in China, where the app dominates the e-commerce landscape.
TikTok’s U.S. team faced a tough challenge in understanding the differences in consumer behavior between the two countries. Unlike the fast-paced, live-stream shopping success of Douyin, U.S. shoppers have shown more hesitance towards livestream shopping, which led to an adjustment in TikTok’s approach.
Stricter Work Conditions and Performance Reviews
In response to missed goals, ByteDance has implemented stringent new policies for the U.S. e-commerce team. Employees are now required to be in the office five days a week, with the company tightening its return-to-office requirements. Additionally, performance reviews have become harsher, with many employees receiving low scores and facing the threat of PIPs or even severance packages.
One unnamed employee stated,
This sentiment was shared by several others within the team, who expressed frustration at the unattainable goals and the mounting pressure to meet unrealistic targets. As another insider put it,
ByteDance’s high expectations for TikTok Shop in the U.S. have been costly. The company invested heavily in the e-commerce platform with hopes of replicating the success of Douyin. However, TikTok Shop’s U.S. operations have been more expensive to run compared to markets like Southeast Asia or the U.K. One insider noted that the high operational costs in the U.S. have only increased the pressure to meet the targets, and the company is struggling to deliver a return on investment that justifies these expenses.
The disappointing performance has also fueled frustration among employees, who are tasked with meeting these high expectations while dealing with a market that is already saturated with e-commerce giants like Amazon and Walmart.
A Move Away From Livestream Shopping
As part of TikTok’s strategy to regain momentum in the U.S. market, the company has begun shifting focus away from livestream shopping. Despite its massive success in China, livestream shopping has been a slow burn in the U.S. market.
Instead, TikTok is now emphasizing short-form videos, which resonate more with U.S. consumers and align better with TikTok’s content-driven approach. This adjustment marks a significant shift in how TikTok plans to drive e-commerce in the U.S., adapting its strategy to fit local preferences.
Uncertainty Amid Legal and Political Struggles
Adding to TikTok's woes is the looming deadline of April 5, 2025, for ByteDance to divest TikTok or face a potential ban in the U.S. This date marks a critical juncture for the company as it navigates the politically charged environment surrounding its ownership. The uncertainty surrounding TikTok’s future in the U.S. has only added more pressure to the e-commerce team, many of whom are uncertain about whether the effort to turn things around will even matter if the app is banned.
As one employee put it,
The company’s future in the U.S. remains uncertain, and for many on TikTok's U.S. e-commerce team, the risk of their efforts going to waste feels all too real.
The Road Ahead for TikTok’s E-Commerce Strategy
TikTok’s e-commerce division in the U.S. is at a crossroads. ByteDance’s high expectations and the mounting pressures faced by the U.S. team have created a tense environment.
While TikTok has experienced some wins, such as hitting $100 million in sales on Black Friday, the company is still struggling to replicate the success of Douyin in the U.S. The shift in strategy away from livestream shopping and toward short-form video content may be the key to turning things around.
However, with the April 5 deadline fast approaching and ongoing challenges in the U.S. market, the road ahead for TikTok’s e-commerce ambitions is uncertain.
