Exclusive

TikTok challenges Amazon as it tests a new subscription model for Shop

Tiktok; Getty Images; Chelsea Jia Feng/BI
Read in app

TikTok is testing a new feature that allows users to subscribe to repeatedly receive products from its e-commerce platform Shop, according to two Shop partners with knowledge of the tool.

The tool, similar to Amazon's subscribe-and-save feature, encourages users to make repeat purchases of items such as vitamins or snacks in exchange for a discount. Sellers can lock in recurring revenue in return.

The Shop partners said the feature is not available to all sellers yet.

A TikTok spokesperson said the company regularly experiments with features to gather feedback and learn from its community. They said this feature hasn't yet been made available to the app's users.

The feature could create more predictable revenue for Shop sellers. Some have struggled with inventory management amid sales surges from viral videos or dips after video views drop off.

"Subscriptions on TikTok Shop are going to add convenience and savings," said Warren Jolly, CEO of the digital-ad firm adQuadrant, which gained early access to the feature. He said the move could keep shoppers consistently buying on TikTok rather than risk having them switch to Amazon or another platform.

Subscriptions are TikTok's latest move to bring its Shop product to parity with e-commerce competitors. It launched in the US in September 2023 following a year of beta testing. The company currently offers a variety of features for sellers, including logistics and fulfillment services and a dedicated app store.

As a relative newcomer, it's gained traction quickly. Last year, TikTok Shop pulled in $100 million in US sales on Black Friday alone. By some measures, such as repeat purchases, it has outperformed incumbents like Walmart.

Of course, TikTok's US e-commerce business could be abruptly cut off in a couple of months. The company is subject to a law that requires its parent company, ByteDance, to divest from the US app or effectively cease operating in the country.

A mix of companies and wealthy individuals have announced bids for TikTok. The company hasn't said whether it's open to a sale. In January, TikTok's lawyer told the Supreme Court that divesting would be "extraordinarily difficult" over any timeline.

February 10, 2025, 4:09 p.m. ET: This story has been updated to reflect additional details from TikTok.

Read next

Dan Whateley
Dan Whateley
Dan is a correspondent at Business Insider covering TikTok, YouTube, and the business of social media.He writes about how creators earn a living from social apps, the inner workings of companies like TikTok, and the many ways that social media is impacting Hollywood and other industries like e-commerce, sports, music, and news.He previously wrote about marketing and entrepreneurship at Ad Age and Inc. Magazine. He was a McGraw Scholar in business journalism at the Craig Newmark Graduate School of Journalism at CUNY and a graduate of Middlebury College. Disclosure: Dan previously worked at the ad tech company, The Trade Desk, where he was granted stock as part of his compensation.