TikTok Shop’s U.S. launch is showing early signs of success, even as the platform faces regulatory uncertainty. 

According to TikTok’s news release, the e-commerce feature debuted in September 2023 and reached $100 million in sales on Black Friday alone.

Reuters cites data from Facteus, which tracks 7-10% of U.S. consumer spending through 140 million debit and credit cards, indicating that TikTok Shop’s transaction volume surpassed Shein and Temu during the week leading up to Cyber Monday on December 2.

Monthly purchasing activity has also reportedly tripled, though Reuters notes it could not independently verify TikTok’s claims. Merchants fulfill orders directly, through third-party services, or via TikTok’s e-commerce fulfillment infrastructure.

The platform’s growth comes at a critical moment. A U.S. federal appeals court has upheld legislation requiring Chinese-owned ByteDance to divest TikTok’s U.S. operations by early 2024 or face a ban. TikTok claims this ruling could impact TikTok Shop’s operations.

“TikTok Shop is a new distribution channel, and brands are doing well with it,” Erik Huberman, CEO of marketing agency Hawke Media, said in a statement. “Honestly, there isn’t an alternative. It will be a lost revenue stream.”

The platform hosts major brands, including e.l.f. Cosmetics and Ninja Kitchen, alongside third-party vendors. Like competitors Shein and Temu, TikTok Shop emphasizes competitive pricing, with some merchandise shipping from China. Reuters notes that all three platforms are working to attract U.S. sellers by offering reduced fees to improve shipping speeds.

TikTok Shop’s integration with its social media platform enables merchants to market through advertising and influencer partnerships. The platform’s “LIVE” feature, allowing direct purchases through live video streams, has seen its monthly sessions nearly triple over the past year, Nico Le Bourgeois, head of U.S. Operations for TikTok Shop, said in the release.