Most purchases online began with a search a few years ago. Today, millions of shoppers discover products while watching videos, scrolling through feeds, and engaging with creators. Social commerce has revolutionized the product discovery process into a shopping experience.
TikTok Shop, commonly known as TTS in eCommerce, is expected to drive eCommerce sales in the U.S. at about $23.41 billion in 2026, accounting for nearly 48% YOY increase. This expansion puts TikTok Shop in a league of the quickest expanding digital commerce platforms in the nation.
At the same time, the top brands are focusing on growing their web presence. The first-year-old Target’s eCommerce sales rose 8.9% YoY in fiscal Q1 2026, while Costco’s eCommerce sales entered fiscal Q3 2026 at 21.5% YoY. While both stores are still strong leaders in their own retail space, TikTok Shop’s success is sparking industry interest.
Royal Digital Agency views TTS e-commerce growth in the US as evidence that consumer behavior is evolving rapidly. Content is increasingly being the focus of shopping, creator-driven, and even embedded right into social channels.
What TTS Means in E-Commerce
TikTok Shop or TTS is the integrated commerce platform of TikTok that enables consumers to discover, assess and buy products without leaving the app.
TikTok Shop is discovery-driven, whereas the traditional E-Commerce site is search-driven. Products are integrated into the video, live stream, recommendations from creators and personalized feeds.
Several features make TikTok Shop unique:
- In-app checkout functionality
- Creator-driven product recommendations
- Livestream shopping experiences
- Personalized product discovery through algorithms
- Integration of content and commerce in a seamless way.
TikTok currently attracts more than 170 million U.S. users, and industry experts estimate that brands can reach the audience through the platform by leveraging engaging video content rather than traditional ads.
Why TTS E-Commerce Growth in the US is Making Headlines
There are not many retail tales that have captured as much attention as TikTok Shop’s explosive growth in 2026.
| Metric | 2026 Data |
| TikTok Shop U.S. eCommerce Sales | $23.41 Billion |
| TikTok Shop Growth Rate | 48% |
| Costco eCommerce Growth | 21.5% |
| Target Online Sales Growth | 8.9% |
| Target Plus GMV Growth | Nearly 60% |
| Small Business Sales Growth on TikTok Shop | 66% |
It’s a very unusual growth rate in a mature retail market. TikTok Shop keeps growing with more retailers adopting the social commerce channel, whereas the majority of big retailers prioritize incremental growth.
One of the key factors is consumer behavior. The study reveals that younger consumers are finding products via social channels before heading to retailers’ sites or search engines. This trend is especially critical to TikTok Shop as it is an equally integrated discovery and purchase platform.
How TikTok Shop Compares With Costco and Target
When you look at the TikTok Shop in comparison with Costco and Target, you’ll see that there are three very different online retail experiences.
Costco’s Strength
Costco continues to dominate through:
- Membership loyalty
- Competitive pricing
- Bulk purchasing advantages
- Strong fulfillment infrastructure
- High customer retention
It’s still about trusted relationships with retailers and valued convenience, as its eCommerce growth rate of 21.5% shows.
Target’s Digital Strategy
Target has strengthened its online presence through:
- Omnichannel shopping
- Same-day fulfillment services
- Marketplace expansion
- Mobile app improvements
- Target Plus marketplace growth
Target Plus GMV increasing nearly 60% highlights the company’s commitment to digital transformation.
TikTok Shop’s Advantage
TikTok Shop operates differently.
Products aren’t waiting for customers to find them – instead, they are being found. It happens organically as users are eating their entertainment and the purchasing process is shortened and becomes more impulsive.
TikTok Shop offers a fresh disruptive approach to shopping that’s based on attention, not search, for brands considering the best e-commerce platforms in the USA.
Why TikTok Shop Is Joining the US Online Retail Sales Leaders
The days of selecting retailers based on the number of stores, amount of stock or hits on their websites are over.
TikTok Shop’s ability to impact customers’ purchasing decisions at an earlier stage in their buying cycle makes it one of the leaders in online retail sales in the US.
Often times, this is the route taken by traditional shopping:
- Search for a product
- Compare options
- Read reviews
- Purchase
TikTok Shop unveils another route:
- Discover a product through content
- Watch demonstrations
- Build trust through creators
- Purchase instantly
Studies show that images of products alone are not as effective at getting consumers to buy them as are real-world product displays.
This behaviour change is why TikTok Shop is quickly taking a bite out of the market.
The Creator-Led Shopping Model Behind TTS Growth
Creators sit at the center of TikTok Shop’s success.
Creators’ content is more personal and relatable than traditional ads. B2B sales can benefit from product recommendations from creators as they show how products are used in real-life scenarios.
There are a multitude of reasons for creator-driven conversions:
- Product Education: Features, benefits and uses are described in plain language.
- Social Proof: Visible trust signals are comments, likes, shares and reviews.
- Authentic Demonstrations: The products are presented with real-world performances instead of artfully produced ads.
- Community Influence: For most users, creators are trusted “gurus” in a niche and are trusted by their followers.
Research has also confirmed that consumers have a greater faith in user-generated content than brand messages. This trust has an impact on conversion rates, directly.
Livestream Shopping Is Turning Attention Into Sales
One of the fastest growing parts of social commerce is livestream commerce. TikTok Shop leverages livestreams to create interactive shopping experiences where viewers can:
- Ask questions in real time
- Watch product demonstrations
- Receive immediate answers
- Access limited-time promotions
- Purchase instantly
Livestream commerce sales have reached hundreds of billions of dollars per year worldwide, and is gaining momentum in North America.
Beauty, fashion, electronics, wellness products and home goods are excellent products to choose during livestream events as the consumers can see the products in use before deciding to purchase.
Brands that do this with livestream selling tend to see increased engagement and conversions.
Why Social Discovery Is Changing Online Retail
Social discovery has emerged as one of the most influential today in eCommerce.
Today, the products are increasingly being met by consumers via:
- TikTok videos
- Instagram Reels
- YouTube Shorts
- Creator recommendations
- Community discussions
Social media are crucial for discovering new products, and search engines are still vital.
A recent trend among Gen Z and younger Millennials shows many consumers using TikTok as a product research tool before visiting retailer websites.
This type of behavior brings a new reality to brands. Now, it is not enough for consumers to show up where they look for information—it’s more important that they show up where they put their minds.
The TikTok Shop is a great benefit as discovery, engagement, and purchase can all be done in a single platform.
What TTS Growth Means for Brands in 2026
The growth of TikTok Shops has some great lessons to share for businesses looking to grow their eCommerce sustainably.
Successful brands are focusing on three priorities:
Content First: Before buying, consumers interact with valuable, engaging and educational information.
Trust Building: Buying decisions are based on authentic reviews, creator partnerships and customer testimonials.
Frictionless Buying: Quick checkout will lead to lower drop-off and higher conversion rates.
As social commerce keeps growing, brands that need only stick with conventional advertising could find themselves in trouble.
Today’s shoppers want the shopping experience to be natural, informative and convenient.
How Brands Can Respond to TikTok Shop’s Rise
Social commerce trends don’t require companies to give up on old marketing channels. Rather, they should take steps to build up their digital ecosystem.
Recommended strategies include:
- Creating short-form video content
- Cooperation with niche creators
- Adding video reviews to product pages
- Testing live streaming marketing campaigns
- Improving mobile shopping experiences
- Leveraging user-generated content
- Optimizing product pages for conversions
Brands are now more likely to embed social commerce within their marketing plans, breaking the silos of social commerce, and not as a standalone campaign.
This integration can increase reach on a number of touchpoints to the customer.
Why TTS Matters for the Future of E-Commerce Marketing
TikTok Shop demonstrates how quickly digital commerce can evolve. Old school marketing funnels divided the awareness, the consideration and the conversion into different phases. Social commerce puts those steps into one.
A shopper can:
- Discover a product
- Learn about its benefits
- Watch reviews
- Purchase immediately
All within a few minutes. This efficiency opens the door for brands that can deliver captivating content and establish credibility rapidly.
The future leaders of eCommerce will likely be a mix of:
- SEO
- Paid advertising
- Creator marketing
- Social commerce
- Conversion optimization
- Customer retention strategies
Companies that utilise these channels well will be in a better position for long-term growth.
Royal Digital Agency’s Take on the News
The surge in TikTok Shop is just a part of the shift in digital commerce.
Consumers’ expectations are still evolving and evolving towards personalized, engaging and convenient experiences. Nowadays, content plays a significant role in the buyer journey – almost at every stage.
Royal Digital Agency helps brands adapt to these changes through:
- SEO-driven content strategies
- Social commerce optimization
- Creator partnership campaigns
- Conversion-focused website improvements
- Performance marketing solutions
Today, it’s not enough to be visible, you have to be seen. Brands need to design genuine experiences to make use of the time to generate revenue.
13. FAQs
13.1 What is TTS in eCommerce?
TikTok Shop is TikTok’s in-built shopping platform, known as TTS. Users can find products in the videos, creators and livestreams before buying it directly in the app. The platform is a single experience solution with content and commerce.
13.2 Why is TTS e-commerce growth in the US important?
Consumer shopping habits are changing, as evidenced by the growth of TikTok Shop. With projected U.S. sales of $23.41 billion in 2026, social commerce is rapidly gaining momentum in online retail and digital marketing.
13.3 Is TikTok Shop growing faster than Costco and Target online?
Yes. The forecasted growth rate of 48% for TikTok Shop is higher than Costco’s eCommerce growth of 21.5% and Target’s online sales growth of 8.9%. This sort of performance makes TikTok Shop among the quickest developing ecommerce platforms in the United States of America.
13.4 Why is TikTok Shop considered one of the US online retail sales leaders?
In TikTok Shop, you can discover products, learn from creators, shop live in TikTok, and complete your transaction in-app. It is a top social commerce platform because it can influence customers’ buying decisions early in the buying process.
13.5 What can brands learn from the top e-commerce companies in America?
Top eCommerce brands are customer-focused, trustworthy, convenient, and innovative. TikTok Shop adds another lesson by showing how content, creators, and community engagement can directly drive sales and customer acquisition.
Final Thoughts
TikTok Shop’s expected expansion is one of the most crucial retail trends of 2026. But Costco and Target are still formidable competitors and they have solid digital businesses too. However, TikTok Shop’s ability to combine entertainment, discovery, trust, and purchasing has positioned it among the fastest-growing platforms in online retail.
Consumers are getting to know products in the first place through creators, videos, and social communities, before buying products.
Those brands that are willing to adapt and embrace this change will find new opportunities for growth, customer acquisition and long-term customer loyalty.
Businesses looking to capitalize on TTS e-commerce growth in the US, compete with US online retail sales leaders, and learn from the top e-commerce companies in America should prioritize content-driven commerce strategies moving forward.
Get In Touch
Royal Digital Agency
📞 +1 (818) 423-9524
📧 info@royaldigitalagency.com
📍 800 N Brand Blvd, Glendale, CA 91203, United States
