Life After TikTok: What a US Ban Could Mean for UK and US E-Commerce Brands

by Art Lindop

Monday, December 16, 2024

In a dramatic turn of events, TikTok faces the looming threat of a ban in the United States as early as mid-January 2025. This decision, stemming from concerns over user data being accessible to the Chinese government via TikTok’s parent company, ByteDance, has left e-commerce brands on both sides of the Atlantic scrambling to assess its potential fallout. While the ban directly impacts US TikTok users and TikTok Shop, its ripple effects could extend far beyond American borders.

At Alphageek, we’ve been closely monitoring this developing story to help brands navigate the uncertain waters of what life after TikTok might look like—especially for e-commerce businesses heavily reliant on the platform. Here’s our take.

What’s Happening with TikTok in the US?

The US government has decided that ByteDance must sell TikTok to a non-Chinese entity or face a nationwide ban. The ban, set to take effect on 19 January 2025, has bipartisan support in Congress, reflecting widespread concerns over data privacy and national security. While TikTok’s legal team plans to take the fight to the Supreme Court, the clock is ticking for the platform in the United States.

For e-commerce brands operating in the US, this raises an urgent question: how do you adapt if TikTok—one of the fastest-growing platforms for discovery and social commerce—suddenly disappears?

What Does This Mean for UK TikTok and TikTok Shop?

At first glance, the UK may seem insulated from the fallout of a US ban. TikTok remains a dominant force in the UK, particularly for TikTok Shop, which has seen skyrocketing adoption rates among brands and consumers alike. However, the situation in the US could still have a knock-on effect:

Declining Global Perception: A ban in the US could erode trust in TikTok globally. If data privacy concerns take centre stage, brands and users in the UK may begin questioning the platform’s long-term viability.
Reduced Cross-Border Sales: Many UK TikTok Shop sellers depend on US consumers for a significant portion of their revenue. A US ban could cut off this lucrative market, forcing sellers to find alternative channels to maintain their international sales.
Regulatory Oversight: If the US moves forward with its ban, other Western governments may follow suit. UK regulators could take a closer look at TikTok’s practices, adding a layer of uncertainty for brands.

TikTok’s E-Commerce Impact: What the Numbers Say

TikTok Shop has been a game-changer for e-commerce, with billions of dollars in sales reported globally. For UK-based sellers, TikTok’s algorithm has been instrumental in driving discovery and engagement. Products frequently go viral, translating into significant revenue spikes almost overnight.

However, US TikTok Shop sales account for a large chunk of this success. Without access to that market, UK sellers will need to reassess their strategies and find ways to diversify their sales channels to mitigate potential losses.

Winners in a Post-TikTok World: Meta and Beyond

If TikTok is banned in the US, one of the biggest winners will undoubtedly be Meta. With platforms like Instagram and Facebook already ramping up their e-commerce capabilities, Meta is well-positioned to capture the displaced audience.

Why Meta is Ready to Step In:

Instagram Reels: A direct competitor to TikTok, Reels offers brands a ready-made alternative for short-form video content.
Facebook Shops: Integrated shopping features on Facebook allow brands to create seamless purchasing experiences directly on the platform.
Targeting and Retargeting: Meta’s advanced ad targeting and retargeting tools provide a significant advantage over TikTok’s relatively new ad ecosystem.

For brands currently reliant on TikTok, shifting focus to Meta’s suite of tools may prove critical in maintaining visibility and sales.

How E-Commerce Brands Can Adapt

For brands on both sides of the Atlantic, now is the time to future-proof your e-commerce strategy. Here’s how:

1. Diversify Your Platforms

Don’t put all your eggs in one basket. Expand your presence on platforms like Instagram, YouTube Shorts, and Pinterest to reach new audiences.
Experiment with Meta’s Advantage+ Shopping Campaigns, which leverage AI to optimise ad placements and drive conversions.

2. Build First-Party Data

With increasing scrutiny on data privacy, owning your customer data is more important than ever. Use email marketing, loyalty programmes, and direct website interactions to build first-party data streams.

3. Leverage Influencers Across Channels

Many TikTok influencers have built significant followings on other platforms. Partner with these creators to amplify your reach across Instagram, YouTube, and emerging platforms.

4. Optimise for Social Commerce

Use social shopping features available on Meta, YouTube, and even Snapchat to create frictionless buying experiences for your customers.
Invest in creative that prioritises short-form video, as this remains the dominant content format.

5. Prepare for Policy Shifts

Monitor developments in the US and other markets closely. Work with agencies like Alphageek to stay ahead of potential regulatory changes and adjust your strategy accordingly.

What’s Next for TikTok and E-Commerce?

While a US TikTok ban is not yet set in stone, it’s a wake-up call for e-commerce brands to diversify their strategies and prepare for a future where TikTok may not be a guaranteed player. For UK sellers, the ripple effects of a ban could still be felt, especially if cross-border sales are a key revenue stream.

At Alphageek, we’re here to help brands navigate these uncertainties. Whether it’s pivoting to new platforms, optimising your Meta Ads strategy, or future-proofing your e-commerce approach, we’ve got the expertise to keep your business thriving in 2025 and beyond.

Need help building a post-TikTok strategy? Let’s talk.