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TikTok Shop launches digital gift cards to challenge Amazon and eBay

TikTok Shop has introduced digital gift cards to enhance its e-commerce offerings and compete with Amazon and eBay. Launched during the holiday season, users can personalize cards from $10 to $500. Despite recording over $500 million in sales during Black Friday and Cyber Monday, TikTok faces uncertainty over a potential sale of its U.S. operations to avoid a ban.

Key points

  • TikTok Shop launches digital gift cards to boost sales and engage users.
  • Gift cards range from $10 to $500 and can be personalized with animated designs.
  • The feature aims to increase competition with Amazon and eBay, which also offer gift cards.
  • TikTok achieved over $500 million in sales during Black Friday and Cyber Monday.
  • Users can send thank-you notes or reciprocate with gift cards.
  • Currently, gift cards are available for purchase only in the U.S.
  • Future updates will allow video messages with gift cards by early 2026.
  • The app's future is uncertain pending a potential sale or ban in the U.S.

Why it matters

  • Digital gift cards are a growing trend as businesses adapt to the e-commerce landscape.
  • The move supports TikTok's strategy to enter the luxury retail market.
  • This development aligns with 2025 IT trends focusing on personalization and user engagement in e-commerce.
  • Similar features have been successful for other e-commerce platforms, suggesting strategies for revenue growth.
  • TikTok's challenges reflect broader issues in the tech industry concerning privacy and regulatory scrutiny in the U.S.

The introduction of digital gift cards positions TikTok Shop as a serious competitor in the e-commerce market, but its future remains precarious amid regulatory challenges.