As TikTok faces mounting regulatory scrutiny in the United States, the future of its lucrative social commerce ecosystem hangs in the balance.
The potential for a U.S. ban has left brands, influencers, and investors scrambling to find the next big platform for livestream shopping and influencer-driven e-commerce.
Enter startups like Whatnot and ShopMy, which have swiftly positioned themselves to capitalize on this disruption. With billions in funding and surging user adoption, these platforms are stepping up to fill the void TikTok might leave behind.
The TikTok Dilemma
TikTok has revolutionized social commerce, integrating viral short-form content with seamless product discovery and checkout experiences.
It has become the go-to live shopping hub, where influencers and brands sell directly to engaged audiences in real time.
However, regulatory tensions between the U.S. and China have jeopardized the platform’s future.
Concerns about data privacy, national security, and foreign influence have led to calls for a potential ban or forced divestiture of TikTok’s U.S. operations.
Such a ban would leave a massive gap in the $50 billion social commerce market, forcing brands and creators to seek alternative platforms.
Enter Whatnot: The New Livestream Shopping Giant
Founded in 2019, Whatnot has quickly emerged as a dominant player in the live-shopping sector. Its real-time engagement mirrors TikTok’s but with a niche focus.
Initially catering to collectibles and trading cards, Whatnot has expanded into over 140 product categories, ranging from fashion and beauty to electronics.
The startup has seen exponential growth, recently securing $265 million in Series E funding, bringing its valuation to nearly $5 billion.
What sets Whatnot apart is its community-driven model. Unlike TikTok, where shopping is an added feature, live shopping is the entire experience on Whatnot.
It is built around real-time auctions, where sellers engage directly with buyers, fostering a sense of excitement, exclusivity, and competition.
This interactive element has proven incredibly sticky, keeping users engaged longer than traditional e-commerce platforms.
Investors see Whatnot’s potential to bring live shopping to Western audiences at scale, a feat that TikTok was only beginning to accomplish before regulatory uncertainty disrupted its trajectory.
With this funding, Whatnot is doubling down on expanding its seller ecosystem, enhancing video commerce tools, and onboarding new categories of influencers.
ShopMy
Another rising star in the post-TikTok social commerce landscape is ShopMy, a platform designed to bridge the gap between content creators and consumers.
Unlike Whatnot, which focuses on real-time shopping events, ShopMy facilitates influencer-driven product recommendations as a next-generation affiliate marketing network for social media creators.
ShopMy recently closed a $77.5 million funding round after reaching profitability, a rare milestone in the startup world.
The platform allows influencers to create personalized storefronts, curating their favorite products and earning commissions on every sale.
This model gives influencers greater control over their brand partnerships, while consumers benefit from authentic, trusted recommendations rather than generic ads.
With TikTok’s future uncertain, many influencers are looking for alternative monetization channels, and ShopMy presents itself as a sustainable, independent solution that doesn’t rely on any single social media platform.
As more brands shift their ad dollars away from TikTok, platforms like ShopMy are expected to surge in influencer sign-ups and brand partnerships.
Can These Startups Fully Replace TikTok?
While Whatnot and ShopMy enjoy massive momentum, replacing TikTok won’t be easy. TikTok’s success in social commerce came from its ability to seamlessly blend entertainment and shopping, leveraging an algorithm that creates hyper-personalized content feeds.
These new platforms must work hard to capture that magic and retain audiences used to TikTok’s effortless discoverability.
Another challenge is adoption and user education. While live shopping is second nature in China (where platforms like Taobao Live dominate), Western audiences have slowly embraced the format.
Many American consumers still prefer traditional e-commerce over livestream shopping, meaning Whatnot and similar platforms will need to invest heavily in education and marketing to shift consumer behavior.
Additionally, creator migration is a key hurdle. TikTok’s massive creator economy was built on years of engagement, with influencers amassing millions of followers and highly engaged communities.
Getting these influencers to transition to new platforms is not a given, and many will wait to see how things play out before fully committing to alternatives like Whatnot or ShopMy. Early incentives, revenue-sharing models, and aggressive onboarding strategies will be crucial to pulling creators away from TikTok.
Social Commerce in a Post-TikTok World
Regardless of whether TikTok gets banned, the social commerce market is undergoing a seismic shift. Investors are betting on decentralized, creator-owned platforms rather than social media giants controlling the ecosystem.
Whatnot and ShopMy are just the beginning. More social shopping startups will emerge, offering unique models to capture market segments.
Brands, too, will need to diversify their strategies, ensuring they aren’t overly reliant on any single platform for social commerce success.
Instead of just pouring money into TikTok Shop, businesses will likely spread their budgets across multiple emerging platforms, experimenting with live shopping, influencer-led commerce, and AI-driven product recommendations.
Ultimately, the rise of social commerce startups is not just a response to TikTok’s uncertainty. It’s an evolution of e-commerce itself. Consumers want more than just transactions; they crave engagement, storytelling, and community-driven experiences. Whatnot and ShopMy are at the forefront of building the next-generation shopping experience, which is more interactive, trust-based, and creator-led than ever.
The big question is: Will these startups fully replace TikTok, or will they complement an evolving social commerce ecosystem? Whatever the answer, one thing is sure: social commerce is here to stay, and the race to redefine it has only begun.
