TikTok Shop Sales Grew Significantly, but Most Brands Are Not Profitable

TikTok Shop's U.S. sales reached an estimated $23.41 billion in 2026, marking a 48 percent increase from the previous year. The beauty category alone saw $980 million in sales in the second quarter, an 82 percent rise year-over-year, according to e-commerce data firm Charm.io.

While the platform's overall sales figures are climbing, the rate of growth is decelerating. After experiencing 407 percent growth in 2024 and 108 percent in 2025, projections indicate 48 percent growth for 2026. This normalization is common for large platforms, but the revenue generated does not reflect this growth evenly.

Out of approximately 803,500 registered stores in the U.S., more than half reported zero sales in 2025. Only 2,143 stores surpassed $1 million in gross merchandise volume (GMV), meaning fewer than 0.3 percent of sellers achieved significant revenue.

The platform's model relies heavily on content creators who earn commissions on sales. Brands must supply creators with free products and manage affiliate relationships. Beyond creator commissions, sellers incur platform referral fees and mandatory fulfillment costs. Many brands offer initial discounts to generate reviews and sales velocity, often resulting in break-even or loss-making early sales, even as GMV appears strong.