Live commerce is a modern online sales format that turns standard purchases into exciting shows. It combines video, entertainment and real-time communication to create a unique user experience and build brand trust. This approach increases audience engagement and encourages spontaneous purchases, especially relevant in the era of digital consumption.
Live commerce is most widespread on the TikTok Shop and Instagram Live platforms. These social networks provide everything you need for live streaming, product demonstrations, and instant sales. In this article, we will take a closer look at how TikTok Shop works, why it is rapidly gaining popularity, and how international sellers can enter the US market and start making money with this platform.
Why sell on TikTok Shop?
Sales on TikTok Shop are showing impressive growth:
- TikTok's embedded shopping revenue reached $1.9 billion in the fourth quarter of 2024.
- In the first quarter of 2025, the figure was $1.7 billion (it was $918.9 million in 2023).
- By 2031, the market size is projected to reach $3.1 billion.
- By 2026, the number of TikTok Shop users in the U.S. will exceed 39.5 million.
Successful business examples on TikTok Shop
Kylie Cosmetics:
One of the most prominent success stories on TikTok Shop is the Kylie Cosmetics brand owned by Kylie Jenner. The company showed how the platform can be effectively used to strengthen its market presence and increase sales.
- Active cooperation with popular influencers
- Conducting colorful live broadcasts and make-up shows
- Publishing viral content
- Over 3.5 million subscribers on TikTok
- Significant growth in sales and brand awareness
Laura Mallows:
A UK entrepreneur who decided to focus entirely on online sales through TikTok Shop, abandoning offline retail.
- Closure of a physical store in Cardiff
- Transferring sales to the format of live broadcasts
- Sells more merchandise in an hour of streaming than in an entire day offline
- Demonstrates the platform's capabilities for small businesses
Twitch streamers:
Representatives of the gamer community who actively use TikTok Shop to sell related products and accessories.
- Sale of gaming accessories and equipment
- Targeting a young, techno-oriented audience
- Effective monetization of subscribers
- Live broadcasts with product demonstrations and purchase links
Who buys on TikTok Shop?
TikTok Shop's audience is becoming increasingly diverse and covers a variety of market segments:
- Youth and teens: TikTok's core audience is 16 to 25 year old users who actively follow trends and make impulse purchases quickly.
- Women and young girls: The female audience actively buys cosmetics, skincare products, clothing and accessories, inspired by the demonstrations and reviews of popular bloggers.
- Men: The male audience is actively interested in gaming, sporting goods, technology and electronics. TikTok Shop allows you to quickly find and purchase your favorite products while browsing content.
- Families and parents: Parent s buy goods for children, household goods and products for the home. The convenience of quick checkout and demonstration of actual product use make shopping on TikTok especially attractive.
How an international seller can register on TikTok Shop USA
Entering the US market may seem difficult, but it is feasible even if you are not a US resident.
Step 1: Registering a company in the USA
To sell on TikTok Shop USA you must:
- Register a company (LLC or corporation) in a state that is convenient for you.
- Obtain an EIN (tax ID) for business and banking purposes.
- Open a bank account in the U.S. (e.g., through Wise, Payoneer, or AirWallex).
TaxFreeCorp e-com solutions can help international sellers quickly and easily register a business, get an EIN and sort out tax issues.
Step 2: Appointing a spokesperson in the United States
A representative with U.S. credentials is needed to work for TikTok Shop USA:
- Form a Letter of Authority (LOA).
- In the LOA, be sure to include the company name, representative's details, signatures and expiration dates.
- The representative can be a business partner, friend or family member.
Step 3: Compliance with legal and tax requirements
Doing business in the U.S. requires compliance with local laws:
- Pay your taxes in the U.S. even if your company is located overseas.
- Strictly adhere to the rules of TikTok Shop USA.
- Preferably working with qualified legal and tax advisors.
Is it worth selling on TikTok Shop USA?
A definite yes, TikTok Shop USA promotes viral and high-conversion products, making the platform a promising platform to scale your e-commerce business.
Ready to get started? Contact TaxFreeCorp e-com solutions and we will help you register your business in the USA and launch successful sales on TikTok Shop USA!