LOS ANGELES: TikTok is making a bold push into luxury retail, transforming its TikTok Shop marketplace from a hub for bargain items into a platform where high-end designer goods worth thousands of dollars are now for sale.
The app, once compared to a virtual dollar store, now features $11,000 handbags from Hermès and Chanel, limited edition sneakers from Nike and Louis Vuitton collaborations, and even secondhand Rolex and Cartier watches.
Most items are sold by luxury resale vendors, who increasingly rely on artificial intelligence tools to authenticate products and reassure buyers.
The expansion marks a major shift in TikTok’s e-commerce strategy. Since launching in the U.S. two years ago, TikTok Shop has faced comparisons to fast-fashion giants like Temu and Shein.
But its move into luxury signals that concerns about a potential TikTok ban in the U.S. have done little to slow the company’s ambitions.
According to resale authentication company Entrupy, which works with TikTok sellers, the platform’s reputation is rapidly improving. Given the old perception that TikTok was like a dollar store, this is phenomenal, said CEO Vidyuth Srinivasan.
TikTok has invested heavily in expanding its shopping features worldwide, rolling out TikTok Shop in markets including Brazil, Japan, Mexico, France, Italy, and Spain.
Even though its U.S. sales targets were recently scaled back internally, executives still see huge potential especially since TikTok Shop is expected to remain under ByteDance’s control under a proposed deal to keep TikTok operating in the U.S.
For many sellers, TikTok has become a major revenue source. New York luxury boutique 17th Street, which joined TikTok Shop last year, says the platform now drives nearly a third of its profits.
The store has sold close to 1,000 designer bags through the app, including high-demand Hermès Kelly and Birkin bags.
TikTok takes an 8% commission per sale a fee many sellers say is worth it given the massive exposure.
To address concerns about fakes a problem in beauty and fast-fashion categories TikTok has tightened enforcement. This year alone, it rejected 1.4 million seller applications and blocked more than 70 million product listings before they went live.
Luxury sellers are required to provide certificates of authenticity within 24 hours of sale. Entrupy is one of five TikTok-approved authenticators.
Its device uses a microscopic camera and AI trained on more than a decade’s worth of images from both real and counterfeit goods, helping determine whether an item is genuine.
Live shopping is becoming a powerhouse for TikTok’s luxury sellers. TikTok’s new live auction feature has fueled bidding wars for high-end pieces.
Los Angeles-based seller Law Divine Luxury has attracted viewers with designer goods from Chanel and Prada, while 17th Street now streams five hours of live shopping every day.
The store has sold individual bags for $20,000 through live shows and sometimes earns over $30,000 in a single Sunday stream.
Vintage items are especially popular, particularly older Louis Vuitton pieces like the Murakami bags, which are outselling new models.
Despite political threats of a TikTok ban, sellers are confident demand for pre-owned luxury will continue to grow.
All the bags that are brand new right now will be vintage one day, said 17th Street’s Olivia Sperduto. And people are obsessed with vintage.
