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ByteDance, the parent company of popular social media platform TikTok, has been focusing on growing its newest venture, TikTok Shop, despite the looming threat of a potential ban on TikTok in the United States. Since President Joe Biden signed a law that could ban TikTok early next year, TikTok Shop has seen significant growth, with a 13 percent increase in orders from April to May. The platform, which offers cheap and novelty items, has become a favorite among online shoppers and has quickly gained popularity in the U.S. market.

With ambitions to grow TikTok Shop to $17.5 billion in sales by 2024, ByteDance has been investing resources in expanding its presence in the American market. The company has been hiring hundreds of employees in the U.S. to support the growth of TikTok Shop, including product managers, creator specialists, and moderation staff. Despite regulatory uncertainty surrounding TikTok’s future in the U.S., ByteDance is doubling down on its efforts to establish TikTok Shop as a core part of its business and continue its expansion.

Creators and industry insiders have noticed that TikTok’s algorithm seems to be favoring posts that promote TikTok Shop, leading to suspicions that the platform is artificially boosting Shop-related content. This concerted effort by TikTok to promote TikTok Shop has been successful so far, with the platform gaining momentum even after the divest-or-ban law was passed. While the future of TikTok remains uncertain, TikTok Shop’s success has shown that regulatory scrutiny has not deterred its popularity among consumers in the U.S.

Despite concerns from some merchants about the potential ban of TikTok in the U.S., TikTok Shop has already started to impact Amazon’s business. Data from Route shows that TikTok Shop is taking a bite out of Amazon’s market share, with an increasing number of orders coming from TikTok Shop. While TikTok Shop has not yet surpassed Amazon in terms of orders, its rapid growth poses a challenge to the e-commerce giant. TikTok Shop’s success could benefit Chinese e-commerce giants Temu and Shein, which are also gaining popularity among American shoppers and could capitalize on TikTok’s potential downfall.

Overall, TikTok Shop’s growth amid regulatory uncertainty and competition with Amazon showcases the platform’s resilience and potential to disrupt the e-commerce industry. ByteDance’s focus on expanding TikTok Shop in the U.S. highlights its commitment to diversifying its revenue streams and establishing a strong foothold in the American market. As TikTok Shop continues to attract consumers and challenge established players like Amazon, its impact on the e-commerce landscape will be closely watched in the coming months.

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