TikTok Shop's first Christmas presents shoppers with a dilemma between tempting discounts and moral considerations.

• In September 2021, TikTok introduced its shopping feature in the US, mirroring the trend of other social media platforms incorporating shopping capabilities.
• Shoppers remain divided on whether they love or hate the feature.
• While some are taking advantage of the low prices, others question the ethics of the products.

This holiday season, consumers are increasingly using social media for shopping, with TikTok's e-commerce venture leading the way. Some people are considering the convenience and low prices of mobile shopping, but also grappling with ethical concerns.

In September, TikTok launched its in-app shopping experience, TikTok Shop, in the US, taking advantage of the popular #TikTokMadeMeBuyIt trend. The platform allows both content creators to sell their own products and users to purchase directly on the app, similar to other social media platforms like Instagram.

Despite facing criticism and being forced to close in Indonesia, more consumers are turning to social media for shopping.

Nearly half of respondents aged 18 to 29 plan on buying holiday gifts on social media apps, according to a recent Shopify-Gallup survey. Additionally, an ICSC report states that 86% of Gen Z shoppers, defined as ages 16 to 26, say social media influences their shopping habits.

Chuck Vaughn, a 29-year-old TikTok Shop enthusiast, referred to the TikTok Shop craze as a "gold rush."

According to a Tennessee resident, the website offers discounts of up to 60% off when combined with coupons and sale prices. In their opinion, there is no reason not to use it.

Vaughn, despite some concerns about privacy, has embraced the trend of giving up data through apps and recently purchased Pokemon cards on TikTok Shop for $33 with free shipping, which arrived in under a week.

Vaughn intends to do some of his holiday shopping on the app and advises his friends and family to use TikTok Shop.

Social media and commerce

The prevalence of buying quickly through in-app purchases has increased, especially during the early days of the pandemic when people were staying home due to mandates or concerns about catching Covid. In 2020, Americans spent a staggering $791.7 billion on e-commerce, according to the U.S. Department of Commerce.

This month, the #TikTokMadeMeBuyIt hashtag has over 77 billion views, and TikTok's Shop platform has more than 200,000 sellers. To celebrate the holiday season, the Shop feature will feature multiple promotions, coupons, and deals on trending products.

Despite the resurgence of in-person commerce following the pandemic, Gartner digital commerce analyst Ant Duffin asserts that consumers' online purchasing behavior has significantly increased in recent years.

Duffin stated to CNBC that the social media commerce industry has created a unique ecosystem consisting of brands, creators, technology, and consumers, all contributing to the growth of e-commerce.

Duffin stated that TikTok is deviating from the norm by offering a comprehensive social commerce platform that includes paid advertising, short-form videos, immersive shops, and the ability to complete transactions within the app.

Duffin believes that this new realm could be a "fresh battleground" for small and medium-sized businesses, particularly during the holiday season. Smaller businesses can effectively raise awareness and build their brands on the social media app, filling in the gaps for brands looking to capitalize on new market opportunities.

TikTok Shop may not be able to compete with Amazon and will only have a minor impact on purchases, according to Duffin.

Questioning the ethics

Not everyone enjoys scrolling and purchasing at the same time.

Grace Romine, a sophomore at Indiana University, stated that she initially found the Shop feature to be irritating, particularly due to the increased advertisements. Additionally, she mentioned that it was hindering the creative content produced by creators on the app.

Romine expressed disagreement with the ethics of certain products sold on the app, particularly when lower prices sparked discussions about the origin of those products.

Small businesses can succeed on TikTok Shop, an e-commerce platform, but many of the products being promoted by thousands of people are not small businesses.

She questioned the ethics of selling a $4 purse, wondering if it was sustainably made and what kind of labor was used to produce it.

Romine dislikes the combination of fast fashion and overconsumption, which makes her lose interest in the Shop feature, despite seeing classmates wearing sweatshirts she's seen advertised on the app. She is excited to see how the app will adapt to its first Christmas in the holiday market.

Ana Kevorkian, a Fordham University senior and history major, has become increasingly tempted to buy from TikTok Shop despite being "principally opposed" to it. She specifically wants a $3 leather purse, but she's still unsure about the ethics behind it.

Kevorkian stated that TikTok Shop promotes overspending and overconsumption, which is the opposite of intentional shopping.

Going onto Safari and buying something in 10 seconds is not a big deal, but if we need to shop so much, it may indicate a cultural issue.

Kevorkian always hesitates when she sees her For You Page show a leather purse, but since she's never made a purchase on the app, she gets a 70% discount on her first purchase.

The recent Shopify-Gallup survey indicates that nearly half of respondents aged 18 to 29 plan to purchase holiday gifts on social media apps. The ICSC report defines Gen Z shoppers as individuals aged 16 to 26. A previous version of the story incorrectly portrayed the age groups represented in these surveys.