In today’s fast-paced digital world, small businesses are finding new ways to grow and connect with customers. tiktok One platform leading this change is TikTok, especially through its TikTok Shop feature and the rise of social selling. From beauty brands to candy stores, small businesses across the United States are using TikTok to boost sales, build loyal communities, and compete with big brands. With over 170 million U.S. users and a unique algorithm that promotes creative content, TikTok has become a game-changer for entrepreneurs. Let’s explore how small businesses are thriving on TikTok Shop and why social selling is the future of commerce.
TikTok Shop, launched in the U.S. in 2023, allows businesses to sell products directly on the platform. Unlike traditional e-commerce, TikTok Shop blends shopping with entertainment. Customers can browse products, watch live streams, and make purchases without leaving the app. This seamless experience has attracted millions of small businesses, with over 500,000 U.S. sellers joining TikTok Shop in 2024 alone.
For small businesses, TikTok Shop offers a low-cost way to reach a massive audience. The platform’s algorithm promotes authentic, engaging content, meaning even businesses with small budgets can go viral. According to a 2023 study, TikTok helped New York’s small businesses generate $1.8 billion in revenue, with 94% of them reporting growth in sales or hiring. Nationwide, TikTok estimates that a one-month shutdown of the app could cost small businesses and creators $1.3 billion in earnings.
Beauty brands, in particular, have seen explosive growth on TikTok Shop. Sales in this category grew 53% year-over-year in 2024, reaching $473.9 million in the first quarter of 2025. Brands like Dieux and Moroccanoil have used TikTok Shop to connect with younger consumers, leveraging influencers and live streams to showcase their products. This success shows how TikTok Shop levels the playing field, allowing small businesses to compete with industry giants.
Social selling is at the heart of TikTok’s success for small businesses. Unlike traditional advertising, social selling focuses on building relationships through authentic content. On TikTok, this means creating videos that feel personal and relatable. Small businesses are using behind-the-scenes clips, customer reviews, and storytelling to connect with their audience.
Take Poppin Candy, a UK-based small business founded by brothers Jake and Brad Wilson. During the COVID-19 lockdown, they started selling international snacks and candies online. By posting creative TikTok videos, they built a loyal following and turned their side hustle into a thriving business. Their story is just one example of how TikTok’s focus on authenticity helps small businesses stand out.
In the U.S., entrepreneurs like Lexi Rosenstein have turned social selling into a full-time career. With over 70,000 followers, Rosenstein is a top beauty product seller on TikTok Shop. She emphasizes that you don’t need millions of followers to succeed. “People don’t realize that you can have 5,000 followers and monetize your content on TikTok,” she told CNBC. Her success highlights how TikTok rewards creativity over perfection, making it accessible for small businesses and creators alike.
TikTok is doubling down on helping small businesses succeed. In May 2025, the platform launched a $1 million ad credit giveaway for U.S. entrepreneurs during Small Business Month. This program offers free ad credits, webinars, and expert tips to help businesses grow. Starting May 15, TikTok hosted weekly webinars to teach small business owners how to create effective campaigns and use the platform’s tools. These initiatives show TikTok’s commitment to supporting entrepreneurs, especially as the platform faces challenges like a potential U.S. ban.
TikTok’s focus on small businesses comes at a critical time. With a June 19, 2025, deadline for its parent company, ByteDance, to sell its U.S. operations or face a ban, TikTok is highlighting its economic impact. The platform claims it supports 7.5 million U.S. businesses and fuels local economies. By spotlighting success stories and offering resources, TikTok is proving its value to American entrepreneurs.
Small businesses across industries are thriving on TikTok. Tony’s Chocolonely, a chocolate brand, has attracted Gen Z customers through viral TikTok moments and influencer partnerships. With $162 million in yearly revenue, the brand shows how TikTok can drive real-world growth. Similarly, Partner in Wine, founded by Lucy Hitchcock, found success by creating stylish wine accessories and promoting them on TikTok. These stories prove that with creativity and the right strategy, any small business can succeed on the platform.
Even less obvious businesses are finding their place on TikTok. For example, QVC, a traditional TV shopping network, partnered with TikTok Shop in 2025 to launch 24/7 live shopping streams. By combining QVC’s expertise with TikTok’s young audience, the company is reaching new customers and reviving its business. This partnership shows how TikTok’s influence extends beyond startups to established brands looking to innovate.
Despite its success, TikTok Shop faces challenges. The potential U.S. ban looms large, with President Donald Trump extending the deadline for ByteDance to find a buyer until June 2025. If TikTok is banned, small businesses could lose a vital sales channel. Additionally, rising tariffs on Chinese goods are increasing costs for businesses that rely on Chinese manufacturing, including many TikTok Shop sellers.
However, experts believe the core of TikTok’s success—its focus on authentic, engaging content—will endure. “TikTok has changed the way consumers shop, and that behavior will stick,” said Flam Stokes, a retail expert. Even if TikTok’s ownership changes, the platform’s influence on social selling is here to stay. Small businesses are already adapting by diversifying to platforms like Instagram and Amazon, but TikTok remains unmatched for its viral potential and young audience.
For entrepreneurs looking to succeed on TikTok Shop, experts offer a few key tips. First, focus on authenticity. Polished ads don’t perform as well as raw, relatable content. Second, engage with trends but tie them to your brand. A social media calendar can help you plan for big events like holidays or viral moments. Third, use TikTok’s tools, like live streaming and customer review videos, to build trust and drive sales. Finally, experiment and learn. TikTok’s algorithm rewards consistent posting, so don’t be afraid to try new ideas.
TikTok Shop and social selling have transformed the way small businesses operate. By offering a platform where creativity trumps big budgets, TikTok has empowered entrepreneurs to reach new customers and grow their brands. From million-dollar ad credits to viral success stories, TikTok is proving that small businesses can thrive in the digital age. As the platform navigates an uncertain future, its impact on commerce is undeniable. For now, TikTok remains a powerful tool for any small business ready to tell its story and connect with the world.
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