TikTok Shop Set to Launch in Brazil This April: How It Could Disrupt the E-Commerce Market

The Brazilian e-commerce landscape is about to witness a major shake-up as TikTok Shop, the social media platform’s in-app shopping feature, prepares to launch in April—just one month after its debut in Mexico.

This new player in the market has already prompted financial analysts to assess which companies are best positioned to benefit from or be threatened by TikTok’s rapid expansion.

What to Expect from TikTok Shop in Brazil

According to reports from Santander and Itaú, TikTok Shop is expected to begin operations next month, based on insights from Chinese news site DSB.

Santander’s latest market analysis, released on Monday (March 10), highlights key findings from TikTok Shop’s launch in Mexico, including:

• Strong partnerships with established brands

• Aggressive incentives for sellers

• High adoption rates in categories such as beauty, fashion, and home goods

  
  

Given these trends, the bank sees major opportunities for Brazilian companies, especially those with high engagement in categories like:

• Beauty & Personal Care

• Fashion & Accessories

• Health-related Products

• Electronics

  
  

Which Companies Are Best Positioned?

Santander identified several companies as well-prepared for TikTok Shop’s arrival in Brazil, including:

• C&A

• Magazine Luiza

• Mercado Livre

• Natura

• Renner

  
  

However, despite the potential benefits, the bank warns that Brazilian retailers must quickly develop strategies tailored to the platform’s unique shopping experience.

On the flip side, some companies are seen as less prepared for TikTok Shop’s disruption, including:

• Azzas 2154 (Arezzo&Co + Grupo Soma)

• Guararapes (Riachuelo)

• Grupo SBF

• Vulcabras

  
  

TikTok’s Impact on the E-Commerce Market

TikTok Shop is expected to roll out strong incentives in its first 90 days in Brazil, including:

• Zero commission days

• Free shipping promotions

• Restrictions on jewelry, food products, and used items

In February, Santander estimated that TikTok Shop could capture between 5% and 9% of the Brazilian e-commerce market within three years, making it a formidable competitor in the space.

Brazil is already TikTok’s third-largest market worldwide, boasting over 111 million users, trailing only Indonesia and the U.S.:

1. Indonesia: 161.1 million users

2. United States: 137.9 million users

3. Brazil: 111.3 million users

4. Mexico: 81.1 million users

5. Vietnam: 69.2 million users

   
   

The Global Success of TikTok Shop

Itaú’s report highlights TikTok Shop’s rapid growth in other markets:

• $9 billion in sales in the U.S. (2024)

• $6.2 billion in Indonesia

• $5.7 billion in Thailand

  
  

Based on these figures, the bank estimates that TikTok Shop could add up to R$3 billion to Brazil’s e-commerce sector.

However, Itaú warns that TikTok Shop has struggled to integrate large, well-established brands. Instead, niche brands and viral products have been the biggest winners on the platform.

As TikTok Shop gears up for its Brazilian launch, the e-commerce market is bracing for major changes. With its content-driven, viral shopping experience, the platform has the potential to reshape the industry—forcing retailers to adapt or risk being left behind.