With a growing number of companies realizing the value of video marketing, TikTok sees an opportunity to position itself as a powerful marketing and selling channel. This is especially the case for small businesses based in America.
During an event held as part of Small Business Month, TikTok shared more details on how its platform is being used by small businesses located across the U.S. In particular, TikTok highlighted small businesses in New York State.
What Is TikTok Shop?
Based on the latest information released by TikTok Shop, TikTok Shop has become the place to discover exciting brands, build awareness, and make purchases right from the mobile application. As TikTok revealed, the showcased Small Business Month event in New York was aimed at highlighting the success stories of small businesses. These are businesses that managed to grow through TikTok’s short-form video approach.
What TikTok Says About Its Impact on Shopping Habits
TikTok has always been associated with entertainment. Recently, however, it started presenting itself as a great discovery and sales tool that helps millions of users explore products offered by brands. These brands include both big and small businesses.
The company said two-thirds of its users who have discovered a brand via TikTok Shop are based in America. In addition, the majority of users (around 88%) discovered a small business with annual revenues under $15M.
That is crucial because discovering new products is now one of the greatest challenges that brands face. On typical ecommerce websites, people tend to search for certain goods or well-known companies. On TikTok, however, thanks to its unique algorithms and content creation environment, users are more likely to discover unexpected products and services.
According to TikTok, the interest in “small business” grew by 479% in Q1 2026. In addition, 89% of small and medium-sized businesses experienced a spike in sales after promoting their products via TikTok.
TikTok Helps Small Business Grow Through Discovery
If TikTok’s information is accurate, small businesses may find it easier to get noticed by millions of people using TikTok every day. The latest research indicates that 72% of newly discovered brands belong to SMBs.
In addition, eight out of ten TikTok Shop users say they discovered more small brands compared to the time when they joined the platform.
The above findings prove that TikTok helps small businesses reach their audience by allowing them to use video content to tell their stories. For shoppers, that means they can discover new brands via videos, influencers’ content, product demos, reviews, trending posts, and more.
By sharing entertaining and inspiring content, small business owners can introduce new products and services to potential customers. This happens without needing huge budgets for advertisement. Thanks to the app’s algorithm, TikTok may recommend interesting products regardless of the size of the company offering them.
TikTok Makes Customers Buy Newly Discovered Products
Another impressive feature of TikTok Shop that may benefit SMBs significantly is its ability to generate quick purchases. The latest TikTok report reveals that almost half of the users (57%) bought a newly discovered product within a few days. Within a month of discovery, 90% of users made a purchase.
For SMBs, TikTok Shop offers an easy way to make money by discovering customers, building engagement, and facilitating purchases right in the app. Thanks to the app’s advanced shopping features, the user experience remains seamless from the moment of the first discovery to checkout.
TikTok Authenticity Helps Companies Connect With Customers
Based on the information provided by TikTok, TikTok small business merchants represent a new generation of entrepreneurs that leverage their authenticity to grow a brand. The company says users feel closer to brands promoted through TikTok. This happens as they are engaged and interested in what brands have to offer.
That connection allows TikTok to promote itself as a platform that helps entrepreneurs reach their goals faster. For SMBs, that means they can easily create engaging content featuring various aspects of the products and businesses behind them.
Such content can be anything from behind the scenes to product packaging, founder interviews, user testimonials, tutorials, and product use cases. By doing that, SMBs can build trust and establish themselves as a reliable brand. This shows they create value for their customers.
Users Say TikTok Helps Them Find New Interests
According to TikTok, 81% of users reported that TikTok allowed them to discover things they were not familiar with before joining the platform. Moreover, after discovering new interests, 45% of users continued searching for more similar content.
Why TikTok Shop Will Be Important For SMBs
TikTok Shop may become a new way for SMBs to market their brands and attract attention of customers. Some of the advantages of TikTok Shop for entrepreneurs include:
- Organic product discovery powered by video content
- Faster connections built with the help of engaging content
- Shopping tools available right inside the app
- Trending content and product demands analyzed by AI
- Ability to compete without big budget for advertisement
Although these features can be beneficial for SMBs, they do not guarantee success on TikTok unless they are properly leveraged. SMBs need to post high-quality videos that can capture attention and make users engage.
How Does TikTok Help SMBs?
Apart from shopping features, TikTok provides its users and entrepreneurs with a variety of marketing tools, including paid advertisements. According to Social Media Today, TikTok will expand the capabilities of its business toolkit. This expansion aims to attract even more entrepreneurs and businesses.
As more brands start to use TikTok, the platform will become more popular and useful for those who need to increase their exposure online. TikTok aims to compete with other social media platforms, such as Instagram and YouTube. In addition, it also aims to compete with marketplaces like Amazon and Pinterest.
Why TikTok Is Great for Entrepreneurs in 2026
Overall, TikTok seems to be developing rapidly and evolving into a place where people can discover new products and businesses. By helping entrepreneurs share their ideas, TikTok offers SMBs more opportunities to market and sell their products and services.
If you are looking for an alternative to other social media, you should consider using TikTok for promotion of your products and services. The latest data proves that TikTok can boost your revenue and increase brand awareness in a shorter period than any other platform.
