Throughout most of 2024, the roughly who make money off viral social media platform TikTok were told they could see their livelihoods completely upended by an impending ban signed by former President Biden. With Donald Trump in the White House, plans may change.
The new commander-in-chief has a 鈥渨arm spot鈥� for TikTok, despite this entire effort to get rid of it technically being his idea. His recently-expressed willingness to negotiate is a source of hope 鈥� but unfortunately not clarity 鈥� for ecommerce business owners.
TikTok briefly went dark on Saturday, January 18 before resuming operations the following day when President Trump promised to issue an executive order to delay the ban upon taking office. Now, everyone鈥檚 waiting to see whether a deal can be made, and, if so, what that will mean for the app鈥檚 future in the United States.
Let鈥檚 go over everything we currently know about the situation and how you can prepare for the potential disruptions to come:
What's the Issue with TikTok?
Talk about an American TikTok ban started when former President Joe Biden signed the Protecting Americans from Foreign Adversary Controlled Applications Act (H.R. 7521) in 2024. A national security law with unusual bipartisan support, it gave video sharing and social commerce platform TikTok less than a year to break ties with Chinese parent company ByteDance or else face removal from the U.S. market.
Concerns stemmed from allegations that app data could be accessed and misused by the Chinese government. The initial January 19, 2025 deadline to divest was just one day before President Donald Trump鈥檚 inauguration, making any possibility of extending or reversing this publicly controversial decision among the first of his second term in office.
Will a TikTok Ban Happen Under Trump?
The executive order President Trump signed on Monday, January 20, 2025, instructs the attorney general not to enforce the TikTok ban for 75 days. The hope is that this extension will afford his administration 鈥渁n opportunity to determine the appropriate course forward鈥� and hopefully strike a deal with ByteDance.
is for the Chinese company to sell at least 50% of TikTok to the U.S. government. But neither the extension nor the deal are guaranteed. Legal analysts have contested the President鈥檚 ability to override federal law with an executive order. Companies like Google and Apple will put themselves at risk if they keep TikTok available on their respective app stores in the meantime.
A long list of large companies and wealthy individuals have expressed interest in buying TikTok, including Microsoft, former U.S. Treasury Secretary Steven Mnuchin, Shark Tank investor Kevin O鈥橪eary, and YouTube creator Mr. Beast. It鈥檚 possible that they or another high-profile buyer close to Trump could become part of an eventual deal in concert with or separate from the U.S. government. The question is whether there鈥檚 any room for compromise.
ByteDance is eager to hold onto the proprietary algorithm many credit for TikTok鈥檚 widespread, irreplicable success. Laws in China may not even allow them to share such technology with Americans. We essentially have 75 days 鈥� until early April 鈥� to wait and see what happens.
How Will a TikTok Ban Affect Ecommerce Businesses?
Say the new administration is unable to strike a deal with TikTok and its parent company, ByteDance. There would only really be two ways forward: a shutdown or extensive lobbying to repeal the underlying law in Congress, which would be exceptionally difficult given its unusual bipartisan support.
If the first case scenario plays out, we have an idea of what to expect from that initial app store removal. It provided just a preview of what a TikTokless America might look like 鈥� notices informing users of service suspension, no access to accounts, and, for many ecommerce businesses, one incredibly valuable sales channel frozen.
Beyond that, the long-term implications would be wide-ranging:
Lost Revenue Stream
Many brands rely on TikTok Shop as a primary or exclusive sales channel. A ban could eliminate their revenue stream, erase years of content and customer data, and force them to rebuild on alternative platforms. Some brands have already begun. In an by the Associated Press, e.l.f. Cosmetics Chief Marketing Officer Kory Marchisotto indicated plans to invest heavily in Instagram Reels and YouTube Shorts.
Reorganizing/Transferring Inventory
Businesses using Fulfilled By TikTok (FBT) need to navigate logistical challenges like transferring inventory and managing fulfillment without TikTok Shop's infrastructure. Those that a third-party logistics (3PL) partner or manage stock themselves will also be tasked with reassessing how they allocate inventory between facilities and sales channels.
Creator Cut-Off
TikTok influencers are a vital source of income and audience engagement for tens of thousands of brands. Shutting the app down means forcing those businesses and creators to find new ways of connecting with one another. Agencies like New York-based Billion Dollar Boy, which was also interviewed by the AP, are encouraging ecommerce clients to start looking for other platforms to facilitate affiliate partnerships and influencer marketing. Although none really compare to the massive network lost in TikTok鈥檚 Creator Marketplace, sites like Ufluence, Influee, and Influencity offer secure infrastructure for those looking to organize paid partnerships on other social commerce platforms.
Customer Confusion
Shoppers accustomed to discovering and purchasing products via TikTok will face disruptions, which could result in lost sales and weakened brand relationships. We鈥檙e already seeing the For You Page flood with videos from businesses aiming to mitigate confusion among followers.
Even TikTok itself is trying to get users engaged through its own content about the ban:
Response to TikTok Ban Bill
How Should Ecommerce Businesses Prepare for a TikTok Ban?
Considering the fact that everyone from Donald Trump to TikTok itself has requested to delay the upcoming ban to no avail, a shutdown of some sort is looking pretty inevitable at this point. Whether that decision is temporary or permanent, ecommerce businesses can protect their best interests by taking the following preparatory steps.
1. Backup Your Content
- Download all TikTok videos, captions, and user-generated content.
- Use TikTok鈥檚 built-in tools or third-party apps to save content in bulk.
- Organize your saved content by campaigns, themes, or performance metrics for easy repurposing on platforms like Instagram Reels or YouTube Shorts.
2. De-Couple and Diversify
- Expand your presence on other short-form video platforms like Instagram, YouTube, Snapchat, or alternatives such as Triller and Clapper.
- Invest in additional ecommerce channels like Facebook Shops, Instagram Shopping, or Pinterest Shopping to reduce dependency on TikTok Shop.
- Ensure your inventory management system can handle a diversified sales strategy across platforms.
3. Communicate Transition Plans
- Use tools like Linktree or Beacons to provide followers with access to alternative platforms.
- Actively share transition plans through TikTok content, encouraging followers to connect with you on other channels.
- Incentivize engagement on new platforms with exclusive discounts, behind-the-scenes content, or early product launches.
The potential TikTok ban serves as a stark reminder of the importance of risk management for ecommerce businesses. By preparing now, you can safeguard your operations and remain agile in the face of uncertainty. Focus on building a multi-channel strategy, preserving your content, and staying connected with audiences to mitigate disruptions. And above all else, stay up-to-date. The sooner you鈥檙e aware of shifts in direction, the more readily you鈥檒l be able to pivot.
While we can鈥檛 guarantee TikTok will be around forever, 黑料社 can guarantee top-tier fulfillment performance no matter what digital channels you sell on. Get 99.9% order accuracy and 99.9% on-time turnarounds through a team empowered by live updated and integrated software built to scale. Adjusting to industry changes is easy when you have one of its foremost leaders as a partner. Learn more about 黑料社鈥檚 third-party logistics solutions by contacting us today.
