TikTok Shop is outperforming Shein and Sephora among US shoppers online

TikTok Shop has surpassed retail giants Shein and Sephora in the online battle for US shoppers.

A 2025 consumer trends report by Coefficient Capital and The New Consumer’s Dan Frommer analysed how Americans’ spending habits could affect certain brands. The research included 11 surveys of over 3,000 US consumers. The company conducted its most recent survey this month.

TikTok Shop launched in September 2023, making it a relatively new online retailer compared to its peers. However, the consumer trends report said 80 per cent of surveyed Americans who use TikTok at least once a month are aware of TikTok Shop, signalling the retailer’s growing reach.

That reach has helped TikTok overtake retailers such as Sephora, Shein, and Qurate in US consumer spending for the third financial quarter, according to the trends report.

Sephora and Shein are two popular online retailers in the United States, especially with younger generations like Gen Alpha. Qurate Retail Group owns and operates six retail brands, including QVC. The company sells items online through its brands.

Sephora helped its parent company, LVMH, achieve record-breaking sales in 2023, reaching US$10 billion in revenue across North America.