Two years back, Stephanie Sims, who is the founder and CEO of Home & Arrow, began crafting wax melts in her residence. Initially, she marketed them to friends, family, and others through personal referrals, generating around $2,000 from January 2023 to June 2024.
Her journey took a turn when she joined TikTok Shop. Within a mere 18 months, Sims amassed over $200,000 through TikTok and website sales, with a substantial portion attributable to TikTok Shop.
“It’s incredible,” Sims comments about her experience. “My website sales also benefited from TikTok Shop, yet the disparity between the two platforms is remarkable. Just in the first quarter of 2024, I earned $10,481.28 via my website in contrast to $58,401.88 through TikTok.
“Even though the figures have varied month to month,” she continues, “TikTok consistently contributes three to six times the revenue compared to my website, depending on the month. In the current economic climate, these figures are extraordinary for a small business. Frankly, even in a stronger economy, these results would still be noteworthy.”
Despite her achievements, Sims and other entrepreneurs are closely watching an impending trial that could potentially redefine the landscape for small businesses like hers. TikTok is preparing to present its case to the Supreme Court, confronting a potential ban.
What is the trial about TikTok?
Here’s a recap of the recent TikTok controversies that have led to this trial:
- In April, President Biden signed a law titled the Protecting Americans from Foreign Adversary Controlled Applications Act, intended to outlaw TikTok in the U.S. starting on January 19, 2025.
- This law mandates that TikTok’s parent company, ByteDance, must divest the app to an entity not governed by a foreign adversary (ByteDance is currently grounded in China).
- The president has the authority to grant a 90-day extension, but for now, the White House is relying on the Department of Justice regarding a possible extension.
- In the event of a ban, companies like Apple and Google would be required to eliminate the app from their platforms or risk incurring a $5,000 fine per user.
Reasons small-business owners are apprehensive
As reported by the Pew Research Center, one-third of U.S. adults use TikTok, and a recent survey revealed that only 32% of Americans supported the idea of banning the platform. Moreover, research indicates that 52% of Americans frequently receive news via TikTok. On average, U.S. adults spend nearly an hour daily on TikTok, with younger adults aged 18-24 dedicating even more time than older demographics. This engagement offers businesses like Sims’ the audience necessary for profitability.
TikTok disclosed in court documents that small businesses and content creators could suffer a loss exceeding $1.3 billion in earnings and revenue within one month if a ban were to be enacted. In TikTok’s 2024 economic report, the platform indicated that it facilitated $15 billion in revenue for small businesses in the U.S. during 2023.
Numerous business owners advocate for the freedom to decide how to utilize platforms and manage privacy concerns, which have been the primary issue surrounding TikTok. “I absolutely get that uncertainty regarding data location can feel unsettling and problematic; however, it’s significant to recognize that this concern isn’t unique to TikTok compared to other social media applications,” explains Lauren Petrullo, CMO and founder of Mongoose Media and Asian Beauty Essentials in Orlando, Florida.
Concerns about TikTok data
“I don’t believe the general American populace is particularly concerned about data storage locations because few actually look into it,” Petrullo adds. “We frequently wear smart devices. I couldn’t even tell you where my fitness tracker data is kept, and while I probably should care, the reality is that I don’t. There are numerous other issues on my plate.”
Some TikTok users desire enhanced data management, but not at the cost of a blanket ban on the platform. “The potential TikTok ban is a significant issue because individuals are apprehensive about how our data is used and whether it’s protected,” remarks Ciara Reed-Kennedy, cofounder of Simpson & Reed and an entertainment attorney in Los Angeles. “Is there a risk of misuse by foreign governments? The government must determine how to safeguard privacy rights without infringing on our liberties or eliminating an application that millions depend on for their businesses [and] social media influence, among other purposes.”
Similar to many complex issues, this one is layered, compounded by a change in presidential leadership and ongoing discussions about free speech. For Petrullo, the situation feels “unconstitutional.”
“This represents a complete infringement on individuals’ First Amendment rights and free speech,” she adds. “Hence, I am thoroughly opposed to it—not just on a personal level, but also in defense of my small-business clientele…. If TikTok is permitted to be banned, what follows? What consequences might arise if other nations decide to follow suit?”
What’s next in the legal journey?
If you’re not keen on delving into high school civics notes, here’s what to anticipate from the forthcoming legal proceedings.
Typically, to reach the Supreme Court, a case must originate in a lower district court and navigate through appeals in higher courts. Cases that involve crucial constitutional or federal legal questions, such as the TikTok ban, can be slated for Supreme Court review through a request known as a writ of certiorari. Each year, the Supreme Court chooses a relatively small number of cases for review, and should the Court opt to hear a case, legal representatives submit written arguments and present orally before the justices, who then render a definitive verdict or elect to reassign the case to lower courts.
In TikTok’s situation, the Supreme Court has scheduled to hear arguments regarding the ban on January 10. Unlike most cases that may span several days or weeks, the Supreme Court has allocated just two hours for this case before arriving at a decision. Additionally, it has not issued a stay on the law in question, indicating that it may reach a ruling before the January 19 deadline.
Why entrepreneurs believe TikTok is indispensable—beyond profits
Sims is unlikely to meet her customers face-to-face, who constantly return for their preferred soy wax melts, room sprays, warmers, and candles. There are numerous other venues where they could acquire similar products. So, what sets her apart from the competition?
Personal connection, she asserts, all thanks to TikTok.
“It enables customers to interact with me as an individual—without ever needing to set foot in a physical outlet,” Sims remarks. “Social media has evolved into the new storefront, offering people the opportunity to support businesses they truly resonate with…. When customers know, trust, and like the owner, they tend to remain loyal for the long haul.”
“In contrast to other platforms that concentrate on polished, ‘highlight reel’ content, TikTok thrives on more authentic, unfiltered footage—showcasing behind-the-scenes glimpses, and interacting directly with inquiries,” she elaborates. “Granted, there are filters, but it still feels the most genuine of all the applications.”
She particularly appreciates TikTok Shop’s convenience of in-app purchasing instead of redirecting customers elsewhere. “The in-app shopping experience on TikTok leads to higher sales conversions, which has been transformative for my enterprise,” she explains. “I even engaged a marketing team for Facebook and Instagram advertisements, but it was an utter failure. Even they couldn’t match the organic sales I’ve realized on TikTok.”
Steps to take if you depend on TikTok personally or in business
Samantha Hicks, managing director and influencer marketing expert at Shine Talent Group, has been preparing business owners like Sims for a potential transition. “In the short term, backing up and redistributing content is a solid initial step, but in the long term, creators should tailor their narratives to each platform’s unique characteristics,” she suggests. “Creators must adjust their storytelling to fit the distinctiveness of each platform while holding onto the authenticity that captures their audience’s interest. For example, utilizing Instagram broadcast channels or YouTube Shorts can help creators mimic the closeness and immediacy that TikTok enthusiasts adore.”
Shine Talent Group’s current focus is on supporting talent engaged in TikTok-centered campaigns up until January 19.
“Some brands are prompting creators to repost content on Instagram as a contingency plan for TikTok campaigns in case of a ban. However, if this isn’t executed strategically, it could overwhelm the creator’s audience, resulting in diminishing engagement and a loss of followers,” Hicks states. “Redistributing TikTok campaigns to Instagram might upend the balance between organic and sponsored content on the creator’s Instagram account, potentially causing long-lasting damage to their enterprise.
“Our objective is to collaborate with brands to ensure the success of campaigns and the achievement of marketing objectives,” she adds, “while also making sure that our clients’ accounts maintain a healthy proportion of organic versus sponsored content and that they are fairly compensated relative to the platform on which the content is posted. While many creators and users have reservations regarding a TikTok ban, we’re advising our talent to prepare as though it’s likely to happen. Our guidance is to brace for the worst while hoping for the best.”
Immediate recommendations
Leading up to January 19, Hicks advises creators and marketing teams to consider the following actions:
- “Collect audience emails through straightforward forms or newsletter enrollments to retain their most dedicated followers.
- Continue engaging on TikTok to sustain momentum, particularly if a last-minute resolution enables the platform to remain active.
- Strategically adapt content across platforms while keeping the balance of organic to sponsored content intact.”
“We anticipate that platforms like Meta and Snapchat may unveil new features to capture TikTok’s allure and charm,” she adds. “Creators who broaden their content and audiences now will be well-equipped to navigate any changes in the social media landscape.”
Future Outlook
As with numerous legal matters, there’s no need to panic—transitions won’t occur as swiftly as one might expect.
“Until a definitive ruling arises, the situation will likely drag on,” suggests Shardé Simpson, a New York-based entertainment attorney and cofounder of Simpson & Reed. “I personally doubt it will be banned in January, despite what many claim.”
However, that doesn’t mean one should remain idle. Now is an opportune moment to strategize your business for a potential platform shift if TikTok is ultimately banned.
“While the future of TikTok is uncertain,” Hicks states, “our strategy is proactive: assisting our talent in protecting their businesses and exploring avenues for growth across other platforms.”
