🦩 $20B for TikTok? Plus, why your affiliate strategy isn’t working


Have you checked your app stores? Still no TikTok yet?

TikTok’s fate in the U.S. is still up in the air.

But brands and sellers aren’t waiting around—social commerce is evolving VERY fast, with AI-driven ad tools and more platforms stepping up.

The marketing tactics to grow your TikTok Shop are also getting challenged.

The affiliate marketing tactics of 2024 don't work anymore, at least for emerging brands. So, I share with you in this edition our latest insights on affiliate marketing and what it takes to win in 2025.

✓ Why TikTok Shop affiliates matter

✓ The major challenges for emerging brands

✓ Case study: Pre-launching a Korean premium makeup brand in the U.S.

✓ Our A.S.C.E.N.D. framework

Plus, the must-known news of the week!

Let’s get into it. 🚀


Read time: 5:25 mins (saving you over 43 minutes compared to reading all the articles.)

Hot Tok News

When will TikTok return to the app stores? (4-minute read on Forbes)
Although a 75-day reprieve was issued, TikTok U.S. 's fate remains in the gray area. Will it take weeks or months before the app makes a comeback? Stay updated on when (or if) the app will make its comeback.
https://www.forbes.com/sites/davidphelan/2025/01/29/when-will-tiktok-be-back-in-the-apple-app-store-and-google-play-store/


US investors offer more than $20 billion for TikTok
(2-minute read on Tech in Asia)
A U.S. investor group, led by tech entrepreneur Jesse Tinsley, has raised over $20 billion to acquire TikTok’s U.S. operations. Will TikTok take the offer?
https://www.techinasia.com/news/investors-offer-20b-tiktok\


TikTok's future questions stability for small businesses across Alabama (5-minute read on The Gadsden Times)
Many local entrepreneurs relied on TikTok’s algorithm to reach new customers, but now they’re left scrambling for alternatives. See how they’re adapting
https://www.gadsdentimes.com/story/news/local/alabama/2025/01/30/tiktoks-murky-future-threatens-stability-for-alabama-small-businesses/77060052007/

Social commerce startups are raking in funding amid TikTok’s uncertainty (3-minute read on Business Insider)
January saw major funding rounds for social-commerce startups:

  • Whatnot: $265M Series E round at a $5B valuation
  • Gloss Ventures: $15M investment for creator brand launches
  • ShopMy: $77.5M Series B to expand into hospitality and wellness
  • Later: $250M acquisition of affiliate firm Mavely

This article dives into why brands are betting big on these platforms.
https://www.businessinsider.com/social-shopping-startups-funding-tiktok-ban-whatnot-shopmy-2025-1

Can Whatnot bring live shopping to the West? (5-minute read on Vogue Business)
Whatnot is taking live-stream shopping mainstream, with sales surpassing $3 billion and rapid seller growth. Discover how it's shaking up the e-commerce space.
https://www.voguebusiness.com/story/technology/can-whatnot-bring-live-shopping-to-the-west

Ex-TikTok Shop boss on how the platform reshaped e-commerce (5-minute read on Business Insider)
Former TikTok exec Sandie Hawkins believes TikTok Shop has changed how people shop forever. Now, she’s using AI to help brands optimize sales.
https://www.businessinsider.com/how-tiktok-shop-ai-transformed-e-commerce-landscape-2025-1

New stats reveal TikTok’s power (3-minute read on Modern Retail)
81% of users trust TikTok for product reviews, and AI-driven ad tools are boosting conversions. What do these trends mean for brands and marketers?
https://www.modernretail.co/sponsored/tiktoks-role-in-commerce-is-growing-as-it-drives-more-brand-discovery/

The future of TikTok Shop (3-minute read on Wonderland)
By 2026, TikTok Shop could account for 10-20% of global e-commerce sales. Even luxury brands are jumping in via TikTok Live!
https://www.wonderlandmagazine.com/2025/01/31/tiktok-shop-wgsn/

TikTok brings its fulfillment service to Germany (2-minute read on Ecommerce News)
After launching in Ireland and Spain, TikTok Shop is now in Germany and hiring for commerce roles across Europe. Could this signal a major retail shift?
https://ecommercenews.eu/tiktok-brings-its-fulfillment-service-to-germany/


Is shoppable video the new sales star? (4-minute read on ITWeb)
Live Shopping is expected to reach $67.8B by 2026, and shoppable videos are driving bigger purchases. Understand why this feature is taking off.
https://www.itweb.co.za/article/is-shoppable-video-the-new-sales-star/j5alr7QA8VQ7pYQk


What brands should know about the future of TikTok Shop (3-minute read on Glossy)
In 2025, shoppers crave both efficiency and security, but 61% of U.S. consumers have abandoned purchases due to payment concerns. Meanwhile, personalized shopping is booming, with 64% now preferring tailored recommendations—more than double last year.
https://www.glossy.co/beauty/what-brands-need-to-know-about-the-future-of-tiktok-shop/

E-commerce startup Hoods secures EGP 5 million investment from Shark Tank (2-minute read on MENAFN)
Hoods secured a major investment to become the Middle East’s top live shopping platform by 2026. Could this model take off in the West soon?
https://menafn.com/1109150107/Egyptian-Startup-Hoods-Secures-EGP-5-Million-Investment-From-Shark-Tank

Insider Tok

TikTok Shop’s Affiliate trap: What emerging brands need to know

TikTok Shop is still new in the U.S. We’re all learning. But the biggest mistake emerging brands can make?

💡 Believing that all affiliates are equals.

They won’t.

As both a seller working with Affiliates and a Product & GTM leader working with DTC brands, I’ve seen firsthand how TikTok Shop’s affiliate program has transformed social commerce.

It’s one of the most powerful tools for helping brands skyrocket to millions of $$$.

TikTok Shop itself pushes the narrative that affiliates are the key to winning on the platform—and for many brands, they are.

In fact, 80% of a product’s GMV on TikTok Shop comes from Affiliates (as mentioned in last week’s newsletter).

But there’s a gap.

Despite TikTok’s emphasis on affiliate marketing, smaller brands struggle to break through.

The system favors high-commission, trending products over long-term brand building.

Why TikTok Shop affiliates matter

Affiliates are verified creators who promote and sell products for commission. They play a critical role in TikTok Shop’s ecosystem:

✔️ Affiliate-driven product page views strongly correlate with sales.

✔️ Top-selling products almost always have significant affiliate engagement.

✔️ TikTok Shop prioritizes affiliate-driven sales with continuous tools and incentives.


Emerging brands face major challenges:

🚨 Struggle to attract quality affiliates.
🚨 Oversaturated outreach—agencies and third-party platforms create fierce competition.
🚨 Spammy outreach tools reduce engagement rates.
🚨 High costs—brands must offer steep commissions and unlimited free samples to stand out.

Case study: Pre-launching a Korean premium makeup brand in the U.S.

We tested TikTok Shop’s Affiliate model by:
📦 Sending hundreds of free products.
💰 Offering competitive commissions.
🤝 Partnering with 100+ affiliates.

The results?
❌ Less than 10% of affiliates created meaningful content.
❌ Sales from affiliates made up less than 5% of total revenue.
❌ Our organic and paid efforts drove significantly better results.

For premium brands, TikTok Shop’s Affiliate marketplace often fails to deliver tangible and sustainable growth.

The solution? The A.S.C.E.N.D. framework

To navigate TikTok Shop without falling into the affiliate trap, emerging brands need a strategic approach.

🔍 A – Assess financial viability
✅ Can you afford 20-30% commissions without killing profitability?
✅ Do you have a budget for product seeding, ads, and potential upfront payments?
✅ What’s your break-even point?

🎯 S – Select the right affiliates
✅ Prioritize niche creators with engaged audiences over mass affiliates.
✅ Align with creators whose content and audience fit your brand.
✅ Vet creators based on past performance, not just views.

📢 C – Craft a clear strategy
✅ Define your marketing angle—what makes your product compelling?
✅ Test different content formats (unboxings, tutorials, transformations).
✅ Set clear KPIs (views, conversion rates, affiliate sales).

🛡️ E – Establish strong brand positioning
✅ Choose between community-focused niche creators or mass exposure.
✅ Protect brand perception—don’t over-discount or undervalue your product.
✅ Maintain consistent messaging across multiple affiliates.

📹 N – Nurture Live Shopping as an alternative
✅ TikTok Shop prioritizes live commerce—it boosts visibility.
✅ Engage directly with your audience and build trust.
✅ Reduce reliance on affiliates while fostering customer loyalty.

📈 D – Develop & scale based on data
✅ Track affiliate performance—who actually drives sales, not just views?
✅ Optimize commissions based on ROI, not industry norms.
✅ Continuously refine content strategies based on conversion data.

TikTok Shop still promotes affiliates as one of the top growth strategies—and I agree.

However, the system is more complex and competitive than ever—brands must adapt.

A one-size-fits-all affiliate strategy doesn’t work anymore.

Don’t fall into the trap.

Success depends on choosing the right partners, protecting your brand, and scaling strategically. 🚀

Tokonomics

TikTok Shop Global Statistics in 2025
Southeast Asia dominates TikTok Shop’s GMV, while the U.S. secures the 6th spot, highlighting its growing influence in social commerce.

Key takeaways from the report:

  • The U.S. is a rising force – As the second-largest market, the U.S. is rapidly gaining traction in TikTok Shop GMV, total products sold, and the number of TikTok Shops, signaling strong growth potential.
  • Beauty & Personal Care leads in revenue – This category dominates TikTok Shop sales, contributing 22.5% of total GMV, followed by Womenswear & Underwear (12.56%) and Menswear & Underwear (8.06%).

Read the full report: https://www.aftership.com/ecommerce/statistics/tiktok-shop

How shoppers are spending in 2025
Salsify's 2025 Consumer Research Report revealed that economic anxiety is changing how consumers shop—66% are cutting back on non-essentials, while 52% are opting for cheaper store brands. But that’s not stopping social-driven shopping from booming.

Influencer power is surging – 39% of shoppers made purchases based on influencer recommendations, an 18% jump from last year.

  1. Viral products are winning – 34% of shoppers bought items they saw trending on TikTok and Instagram.
  2. Live Shopping is on the rise – 35% of consumers have made a purchase through a livestream, up 22% year-over-year.
  3. AI is reshaping shopping habits – 28% trust AI assistants for shopping advice, and 17% have acted on AI-generated recommendations.
  4. Brand trust matters more than ever – 87% of shoppers are willing to pay more for brands they trust.

The numbers speak for themselves—consumers are shopping smarter, more socially, and with a heavy emphasis on trust and authenticity. Are brands keeping up?
https://www.retailcustomerexperience.com/news/shoppers-big-on-multitasking-while-shopping/


Understanding social media buying trends to drive 2025 sales
Research shows 56% of social media users will maintain their current level of purchases in 2025, while 32% plan to buy more—with men leading the trend at 38% compared to 27% of women.
https://www.mytotalretail.com/article/understanding-social-media-buying-trends-to-drive-2025-sales/

Crazy Tok

TikTok is going crazy for this $370 giant 'reading chair' from Costco
Book lovers are losing their s(h)eats over Costco’s $370 giant reading chair, calling it the ultimate cozy nook.

Is this oversized chair the next must-have for your home?

Sit tight and see for yourself! 🪑

https://www.tiktok.com/@thatsmybookshelf/video/7464429029316103454?is_from_webapp=1&sender_device=pc&web_id=7466039925738653201

https://www.yahoo.com/lifestyle/tiktok-going-crazy-370-giant-180512825.html

And that’s a wrap for now!

No matter what’s next, I’ll be here to keep you in the loop.

Stay tuned, and as always, feel free to hit reply—I’d love to hear your thoughts!

Until next time, keep riding the TikTok Shop wave. 🚀

— Steph

The Tok Newsletter

E-commerce operators and brand managers start their TikTok Shop and Live Shopping journey with The Tok newsletter, where they get weekly insights and tested tactics directly from a TikTok Shop seller!

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