Social Commerce Faces a Shift as TikTok Uncertainty Grows

How Startups and Brands Are Adapting to a Changing Digital Market

The social commerce industry, which has flourished on platforms like TikTok Shop, is now facing an unpredictable future. Recent regulatory concerns and potential TikTok bans in the U.S. have left brands, influencers, and investors questioning the platform’s long-term viability. However, as one door closes, another opens—startups are actively reshaping their strategies, securing funding, and experimenting with livestream shopping alternatives to maintain their competitive edge.

The Uncertainty Around TikTok and What It Means for Social Commerce

With over 150 million users in the U.S., TikTok has been a dominant force in social commerce, particularly for younger demographics. However, government scrutiny over data security concerns has led to renewed discussions of an outright ban or forced divestiture of TikTok’s U.S. operations. If the platform were to face restrictions, brands relying heavily on TikTok Shop’s engagement-driven model would be forced to rethink their strategies.

A report from Insider Intelligence predicts that social commerce sales in the U.S. will reach $80 billion by 2025, with livestream shopping playing a significant role in this growth. However, regulatory uncertainty means brands must prepare for a potential shift away from TikTok to alternative platforms.

Startups Are Seizing the Opportunity

Despite the instability, social-commerce startups are securing significant funding rounds to develop new platforms that fill the potential void left by TikTok. For example, Whatnot, a livestream commerce platform valued at over $3.7 billion, has gained traction as an alternative for influencers and sellers. Similarly, NTWRK and ShopShops are attracting both brands and shoppers eager to explore live shopping experiences beyond TikTok.

Which Platforms Are Emerging as Alternatives?

With uncertainty surrounding TikTok’s future, several platforms are positioned to benefit from the disruption:

• Instagram Live Shopping – While Instagram initially scaled back some live shopping features, the platform remains a powerful player in influencer-driven commerce.

• Amazon Live – The retail giant is heavily investing in its live shopping capabilities, offering brands a built-in audience with high purchase intent.

• YouTube Shopping – Google’s video platform has doubled down on social commerce, integrating live shopping events with creator-driven product promotions.

• Facebook Live Shopping – Meta has shifted its focus away from Facebook Marketplace toward branded live shopping experiences, making it a viable alternative.

How Brands Can Adapt to the Shift

With TikTok’s future uncertain, brands must diversify their social commerce strategies:

• Expand to multiple platforms – Relying solely on TikTok Shop poses a risk. Brands should explore Instagram, YouTube, and Amazon for live shopping.

• Strengthen influencer partnerships – Collaborating with multi-platform influencers ensures brand reach even if TikTok’s regulatory issues escalate.

• Leverage owned digital assets – Developing direct-to-consumer (DTC) e-commerce strategies can mitigate reliance on third-party platforms.

• Experiment with emerging platforms – Platforms like Twitch, Discord, and even Pinterest are innovating within the social commerce space.

While TikTok remains a social commerce powerhouse, regulatory challenges mean brands and startups cannot afford to be complacent. With alternative livestream platforms growing rapidly, the industry is experiencing a transformation that could ultimately create more opportunities for sellers and content creators alike. The key takeaway? Social commerce is evolving, and brands that embrace platform diversification and multi-channel strategies will be best positioned for long-term success.