The TikTok store is huge for the beauty industry

Online shopping has changed the way we buy things, and social media platforms are reshaping the shopping experience again. A report by Dash Hudson and NielsenIQ shows that TikTok Shop, the company’s in-app shopping feature, is quickly becoming a key retailer in the beauty industry.

The report shows that TikTok Shop is currently the ninth largest online beauty and wellness retailer in the US and the second largest in the UK. As per previous research, TikTok Shop’s presence in the industry has been growing steadily over the past few months. Advertising week TikTok Shop reports it has outperformed competitors such as large department stores, small specialty beauty stores and direct-to-consumer brands.

The TikTok Store has been available in the U.S. for less than a year and allows brands and influencers to directly sell products on the app by linking them to videos. TikTok has also added a dedicated Shop tab to its home screen, where everything from cosmetics and shoes to groceries are for sale, sometimes at deep discounts.

Since the launch of TikTok Shop last year, user feeds have been steadily replaced by e-commerce content: creators earn a commission on each purchase, they share products video by video, and the platform itself tries to nudge viewers into the in-app purchases section with buttons and tooltips. While TikTok started as a short-form video entertainment platform, it is increasingly becoming a shopping destination, competing with big retailers like Amazon in getting users to watch a video and buy something.

Beauty content is one of the most popular types of videos on TikTok, and some creators make a living sharing tips or testing products. TikTok, of course, wants a cut of the revenue from every purchase people make after seeing the product in the video.

For brands that gain popularity on TikTok, the sudden influx of attention – and orders – isn’t always a blessing. How Business expert detailed, small businesses flooded with new customers may have trouble keeping up with demand. A short burst of virality also doesn’t necessarily translate into a company’s long-term sustainability. And, of course, TikTok’s uncertain future in the US, where it faces a ban unless owner ByteDance divests the company.