TikTok Ban Fuels Social-Shopping Startup Boom
The U.S. social-commerce arena is experiencing a seismic shift as investors pour millions into startups like Whatnot, ShopMy, and Flip, hoping to capitalize on TikTok’s uncertain future. With TikTok facing potential bans and restrictions, alternative platforms are gaining traction, fueling a wave of funding, acquisitions, and expansion efforts in the space.
The Rise of Social Shopping Platforms
Social-shopping startups are seeing record investments as they step up to fill the potential void left by TikTok. Whatnot, a livestream shopping platform, secured a $265 million Series E round, pushing its valuation to $5 billion after surpassing $3 billion in sales in 2024. ShopMy, a creator-affiliate marketplace, raised $77.5 million, signaling a growing shift toward creator-driven e-commerce.
According to ShopMy CEO Harry Rein, creator marketing has evolved from an experimental channel to a core performance driver for brands, making this the perfect time for social-commerce platforms to scale.
Beyond fundraising, startups are making strategic acquisitions and launching creator incentives to grow their user bases. Later, an influencer marketing firm, acquired affiliate company Mavely for $250 million, strengthening its ability to track marketing performance and boost creator earnings. Meanwhile, Flip, a TikTok-like social-shopping app, is gaining traction, even ranking in the top 10 on Apple’s App Store.
TikTok’s Uncertain Future: A Catalyst for Change
TikTok has been a major driver of the U.S. social-commerce boom, connecting influencers with merchants through TikTok Shop. However, with its Chinese parent company facing a divest-or-ban mandate, its future remains in limbo. As some e-commerce partners look for alternative platforms, startups like Whatnot and Flip stand to benefit from a potential ban.
Investor Ollie Forsyth believes these platforms have a unique opportunity:
"If the TikTok ban moves forward, these platforms can acquire huge volumes of creators and new consumers."
Commerce Ventures partner Matt Nichols echoes this sentiment, highlighting how TikTok’s success came from its massive user base and advanced recommendation algorithm. To replicate this, new social-commerce platforms must quickly attract both creators and consumers at scale.
The Future of Social Commerce: What’s Next?
As TikTok’s fate unfolds, investors are increasingly betting on platforms that can integrate shopping directly into social experiences. Former TikTok e-commerce leader Sandie Hawkins believes this model will thrive regardless of TikTok’s future, as social commerce is fundamentally about community-driven recommendations.
With platforms aggressively raising capital, acquiring competitors, and incentivizing creators, the social-commerce space is poised for massive disruption. Whether TikTok survives or not, the shift toward creator-led shopping experiences is here to stay.
