TikTok Shop & Creator Commerce: Where Discovery Meets Conversion

The Future of Commerce: TikTok Shop in 2025

TikTok Shop is no longer an emerging player but a dominant force reshaping the way commerce works in the digital age. With over 1 billion global monthly active users, TikTok is the fastest growing platform in the world and an undeniable engine of discovery-driven commerce.
The user journey has fundamentally changed. Shopping is no longer about search. In its first year on the U.S. market, TikTok Shop has already generated $4.6 billion in gross merchandise volume (GMV).

The opportunity is clear and it goes beyond revenue.

TikTok Shop isn’t only driving sales, it’s shaping brand discovery, loyalty, and cultural relevance in a way few platforms can. TikTok users now consume the equivalent of a feature film’s worth of content daily (118 minutes per day), and 64% of them discover new products or brands while scrolling.

This trend is more than passive entertainment – it’s action-oriented. A staggering 92% of users take action after viewing a product on TikTok, and 61% have made a purchase directly through the app or after seeing a TikTok ad. In 2025, TikTok isn’t just a platform – it powers the entire decision journey – from discovery and research to conversion and advocacy.

High-performing categories like fashion (38%), electronics (35%), and home goods (33%) thrive not just because of demand, but because they are easy to showcase in visual-first, story-led formats. TikTok Shop, now fully integrated into the app ecosystem, enables shoppable videos, LIVE commerce, a personalized Shop tab, and seamless in-app checkout, compressing the path from interest to purchase into just a few taps.

Established brands and startups alike have seen results: for example, e.l.f. Cosmetics was featured in a TikTok Shop “Super Brand Day,” debuting a new product and running flash sales that drove massive engagement.
During late 2024, top-selling TikTok Shop brands included Crocs, Fenty Beauty, and Estée Lauder, highlighting that TikTok Shop is now a channel for both heritage and buzzy labels.

Importantly, the holiday season results underscore TikTok Shop’s scale:

On Black Friday 2024, TikTok Shop crossed $100 million in sales for the day. That’s about three times the prior year.
Throughout the November–December campaign, a third of TikTok Shop purchases went to small and medium businesses, showing that this platform can help even newer brands find customers. 

These stats illustrate that if your customers are on TikTok, that’s where sales are happening.

Why Paid Ads Are the Only Way Forward

We’ve entered the “efficiency era” of TikTok.  Defined by data-driven decisions, performance benchmarks, and scalable ad formats, TikTok is built to reward performance. Paid formats like Spark Ads and Shopping Ads allow brands to amplify creator content without losing authenticity – bridging the gap between community trust and algorithmic scale. The platform’s ad suite supports every stage of the funnel, making it a true full-funnel performance engine.

Notably, TikTok’s ad inventory is seamlessly embedded into the user experience. The result? Ads that don’t feel like ads. Shoppable videos and LIVE formats increase engagement and reduce friction, allowing users to shop in the moment of inspiration.
For example, TikTok’s internal research shows that top beauty sellers on the platform generated over $4 million in Year 1 – largely driven by this impulse-to-checkout journey.

But TikTok isn’t just about performance. Social media is powered by people and their community behind them.

The New Rules of Creator-Led Discovery Commerce

Creators sit at the heart of TikTok’s commerce revolution. What makes TikTok unique is its culture of entertainment-first engagement. It’s not about polished campaigns – it’s about relevance, relatability, and raw moments of curiosity.

Authenticity has become the most valuable currency. Consumers are more likely to trust a relatable creator showing how they use a product in real life rather than a high-budget ad spot. TikTok’s internal data shows that creator-led content such as product demos (3.3 million views), educational snippets (1.6 million views), and reply-comment videos (3.7 million views) outperform other content types.

75% of TikTok users say they’re likely to purchase something while using the app
(Retaildive, 2025)

To thrive, brands must think like creators:

• Publish 5-7 pieces of shoppable media per week
• Create with platform-native tools (e.g., stickers, comment replies)
• Prioritize educational, story-driven content that answers real questions

The path to success isn’t linear – it’s iterative. Brands can A/B test hooks, call-to-actions, formats, and lengths weekly. TikTok rewards experimentation over perfection, making agility the ultimate performance asset.

Creators Are the New Storefronts

In 2025, TikTok creators are more than influencers: they’re merchants, media buyers, and brand advocates rolled into one. Through TikTok Shop’s affiliate infrastructure, creators can monetize content in real-time, directly tag products, and track performance – shifting the focus from impressions to conversions.

Consumers trust real voices. According to TikTok, 67% of users say the platform inspires them to shop – even when they weren’t planning to. The For You Page isn’t just a feed, it’s a space where creators introduce products in ways that are niche, credible, and community-specific. Whether it’s skincare for sensitive skin or fashion for plus-size bodies, TikTok creators offer authenticity that traditional advertising simply cannot replicate.

By showing up in the right voice, creators create deeper affinity and faster conversion. Brands that build long-term relationships with creators, not just transactional ones, gain an outsized advantage. These collaborations become not just sales tools, but brand-building engines.

The Hidden Risks of TikTok Commerce and How to Stay Ahead

Brands that make TikTok Shop part of their strategy gain access to a massive, engaged audience and new sales, but they must also manage the platform’s challenges. 

Ignoring TikTok Shop means missing out on Gen Z’s purchasing power. Surveys show that Gen Z plans to do most of their holiday shopping on TikTok – not just browsing, but actually buying. TikTok Shop is proving to be an even bigger driver of gift purchases than influencer recommendations, signalling a major opportunity for brands to tap into this shift (yes, before holiday season).

While TikTok Shop offers unparalleled upsides, it does come with complexity: The algorithm powering content discovery is constantly evolving. Campaigns that drive results one week can suddenly lose traction the next.

Beyond technical volatility, there are broader geopolitical risks. With ongoing discussions around data privacy, platform regulation, and potential bans in key markets, brands must not treat TikTok as a single-point dependency.

Future-ready brands are:

• Building owned audiences through email, SMS, and loyalty programs
• Integrating TikTok Shop into broader omnichannel strategies
• Diversifying traffic sources while retaining TikTok as a conversion driver

Ultimately, success lies in understanding that TikTok goes beyond being a media channel, serving as a culture engine. Brands that align with that culture, speak its language, and adapt to its speed will thrive, no matter the platform changes.

Bottom Line: TikTok Shop Proves A Cultural Shift

TikTok has fundamentally reframed the way commerce happens. It’s not about pushing products – it’s about creating cultural moments that inspire action. Shopping has become social, immersive, and creator-led. TikTok is not replacing traditional e-commerce platforms – it’s building something entirely new.

At Pulse Advertising, we believe performance and brand storytelling must go hand-in-hand. Our campaigns are built to convert in the now and build loyalty for the future. Whether you’re uploading your first product catalog or optimizing a full-funnel TikTok Shop strategy, we help you connect with customers where discovery actually happens. 

Clients who add TikTok Shop into their channel mix often see an uplift in overall ROI thanks to the native checkout and viral potential.

On TikTok, people don’t search for products – they search for stories. And the brands that win are the ones sharing them authentically. If your brand is rethinking its social commerce strategy, now is the time to act. The opportunities on TikTok Shop are immediate, but so is the competition.

We encourage CEOs and CMOs to consider how TikTok Shop fits into the customer journey. And if you need consulting or end-to-end implementation, we’re here to help. 

Ready to turn your TikTok presence into a powerful sales channel?