TikTok Shop on Track to Lose More Than $500 Million in U.S. This Year

The cost of TikTok’s online shopping expansion in the U.S. is beginning to add up.

TikTok Shop, the app’s nascent shopping service, is expected to lose more than $500 million in the U.S. this year, according to a person with direct knowledge of the matter. The loss reflects TikTok’s heavy investment in hiring, building a delivery network and subsidizing merchants that offer double-digit–percentage discounts and free shipping.