US businesses lose billions of dollars when TikTok is banned

An impending ban on TikTok could impact millions of small businesses in the US, companies that have relied on the social media app for business in recent years. It is estimated that US small businesses lose more than $1 billion a month.

A loss of $1 billion in revenue in one month.

Desiree Hill, owner of Crown's Corner Mechanic in Conyers, Georgia, started her business as a cell phone repair technician. Sharing videos of her work on TikTok helped her spread the word and gain popularity to the point where she was able to open a new shop and hire five employees 18 months ago.

Tiktok will be banned from operating in the US from January 19, 2025.

"Every day, a few customers see me on TikTok, watch my mobile phone repair videos, and want to become customers," said Desiree Hill.

Although TikTok was only launched in 2016, American small business owners use the platform in a wide range of ways, from developing their customer base to advertising and marketing, as well as selling directly from their websites.

According to TikTok's estimates, small businesses would lose more than $1 billion in revenue in just one month if the ban on the social media platform operating in the US takes effect.

The US Justice Department has ordered TikTok's parent company, ByteDance, a Chinese company, to sell the app or face a ban from operating in the US starting January 19, 2025, citing security concerns. The Supreme Court is expected to take up the matter in January 2025. President-elect Donald Trump, who takes office on January 20, recently asked the Supreme Court to postpone the ban.

If the ban actually happens, small businesses will have to turn to other platforms to find their customers. Instagram Reels, Snapchat, and YouTube Shorts are alternatives. The good news is that brands may already be there. However, they may struggle to reach teenage customers, the group that has long made TikTok their preferred social media app.

Switch to other platforms like YouTube, Instagram, and Facebook

Another alternative is to rebuild a customer database, where people would agree to provide contact email addresses or phone numbers. This allows the owner to directly reach customers with promotions and other marketing information.

President-elect Donald Trump recently asked the Supreme Court to postpone the ban on TikTok.

However, the owner of Crown's Corner Mechanic said she worries that other websites may not have the same reach as TikTok. She has a presence on YouTube, Instagram, and Facebook, but the engagement is not the same.

"I'm worried because I'm not prepared for this. TikTok holds a crucial position in my customer base and how I reach them. Without TikTok, I would lose a significant portion of my revenue, or the ability to grow my business," Desiree Hill shared.

Crystal Lister is the owner of Mommy and Me: The Listers, a Cypress, Texas, business that offers interactive workshops on STEM education . The entrepreneur has been trying to turn to YouTube for videos and Instagram Reels for trailers to drive people to YouTube, but she says TikTok has been more successful.

"It would be a challenge if TikTok was banned, because we would lose most of the functionality we have built, such as the ability to create videos or spread information through social media. If TikTok were banned, we would have to use many other apps to complement what ByteDance's apps already do in one platform," said Crystal Lister.

(Source: AP)

Source: https://www.baogiaothong.vn/cac-doanh-nghiep-my-thiet-hai-ty-usd-khi-tiktok-bi-cam-192250102120722247.htm