China’s TikTok Follows the Bezos Blueprint with Plans to Establish Fulfillment Centers Across America

Shou Zi Chew, chief executive officer of TikTok Inc., during an interview at the TikTok of
Christopher Goodney/Bloomberg/Getty

Chinese-owned social media giant TikTok is planning to mimic Amazon by establishing its own product fulfillment centers in the United States, signifying the company’s dedication to e-commerce as its next major revenue stream.

TikTok wants to create its own e-commerce supply chain system that could directly compete with Amazon, according to a report by Axios, which noted that more than a dozen new job openings have been posted to LinkedIn in the past few weeks.

07 July 2022, Berlin: The logo of the video community TikTok at the fashion fair Premium. Photo: Jens Kalaene/dpa (Photo by Jens Kalaene/picture alliance via Getty Images), Xi Jinping, China's president, waves after speaking at a swearing-in ceremony for Hong Kong's chief executive John Lee in Hong Kong, China, on Friday, July 1, 2022. Hong Kongs new security-minded leader was sworn in by President Xi Jinping as the city marks 25 years of Chinese rule, after declaring the Asian financial hub had been reborn after a crackdown on the pro-democracy opposition. Photographer: Justin Chin/Bloomberg via Getty Images

Photographer: Justin Chin/Bloomberg via Getty Images

The job postings reveal that TikTok is planning to build an “international e-commerce fulfillment system,” which will involve international warehousing, customs clearings, and supply chain systems that will eventually operate similarly to Amazon.

Unlike Amazon, however, TikTok does not appear to be looking into creating its own delivery and transportation unit, as job postings suggest the company is planning to work with vendors to handle shipping.

“By providing warehousing, delivery, and customer service returns, our mission is to help sellers improve their operational capability and efficiency, provide buyers a satisfying shopping experience and ensure fast and sustainable growth of TikTok Shop,” the company wrote in one job listing.

“Building out its own e-commerce supply chain could give TikTok more control and boost profits in the U.S. and around the world,” Axios notes.

A TikTok spokesperson confirmed to Axios that it plans to provide “a selection of merchants which offer a range of product options as well as delivery options” in areas like the UK and Southeast Asia — where it currently offers e-commerce programs.

Mimicking Amazon’s e-commerce is not the only area where TikTok stands to boost its revenue.

The Chinese company is also profiting from videos of displaced families in Syrian refugee camps begging for donations. TikTok reportedly takes up to 70 percent of the proceeds from such livestreams.

You can follow Alana Mastrangelo on Facebook and Twitter at @ARmastrangelo, and on Instagram.

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