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TikTok is gradually entering the luxury goods market, transforming TikTok Shop from a virtual “dollar store” into a destination where shoppers can buy handbags and watches worth thousands of dollars, Bloomberg reports.

Now, TikTok Shop features Hermes and Chanel bags priced at $11,000, rare limited-edition sneakers from Louis Vuitton and Nike, as well as Rolex and Cartier watches—just in time for Black Friday. Most of these items are pre-owned, sold by resellers who often use artificial intelligence to verify authenticity, leveraging TikTok’s global reach to connect with buyers.

Experts say the rise of high-end goods on the platform reflects TikTok’s growing ambitions in e-commerce. While TikTok Shop still offers bargain finds and seasonal discounts, the push into luxury shows that the potential U.S. ban hasn’t dampened the company’s online shopping ambitions.

“Previously, TikTok was perceived as a ‘dollar store,’ and now it’s a phenomenon,” says Vidyuth Srinivasan, CEO and co-founder of Entrupy, a company that uses AI to authenticate luxury handbags and sneakers on the platform.

For small boutiques like New York’s 17th Street, TikTok Shop has become a key sales channel. Olivia Sperduto, head of social media at the store, says TikTok has helped sell nearly 1,000 designer bags, including iconic Hermes Kelly and Birkin bags, as well as Chanel, Louis Vuitton, and Balenciaga pieces. TikTok takes an 8% cut of each sale, a commission vendors consider acceptable given the high volume of orders.

To prevent counterfeits, sellers rely on Entrupy—one of five TikTok-approved companies that verify the authenticity of expensive second-hand handbags, accessories, and footwear. Watches, meanwhile, require a certified watchmaker. TikTok also actively enforces policies: in the first half of the year, it rejected applications from 1.4 million prospective sellers and blocked over 70 million product listings before they went live, while removing more than 200,000 prohibited items.

TikTok launched its pre-owned luxury category in the UK last year and expanded it to the U.S. in 2023. Nicolas Waldmann, TikTok Shop’s global governance lead, notes that the second-hand luxury market appeals to Gen Z, who value sustainability and the reuse of goods.

TikTok continues to invest in this segment: the company is expanding its U.S. team focused on luxury resale and collectibles, including watches, while also betting on live selling to attract even more shoppers.

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