Two years ago, Stephanie Sims, founder and CEO of Home & Arrow, started making wax melts in her home. She sold directly to friends, family and others through word of mouth and made around $2,000 between January 2023 and June 2024.
Then she joined TikTok Shop. In just 18 months, she earned over $200,000 from TikTok and website sales, many of which were driven by TikTok Shop.
“Unreal,” Sims says of the experience. “My website sales also saw a boost as a result of TikTok Shop, but the difference between the two platforms is significant. In the first quarter of 2024 alone, I made $10,481.28 on my website compared to $58,401.88 on TikTok.
“While the numbers have fluctuated throughout the year,” she adds, “TikTok consistently brings in three to six times more income than my website, depending on the month. In today’s economy, these sales are amazing for a small business. Honestly, even in a stronger economy, these numbers would still be impressive.”
Despite this success, Sims’ eyes—along with other business owners’—are now on an upcoming trial that could permanently shape the future of small businesses like hers. TikTok is heading to the Supreme Court to face a potential ban.
Why is TikTok on trial?
Here’s the TikTok drama in recent months that’s led up to this trial:
- President Biden signed a bill in April called the Protecting Americans from Foreign Adversary Controlled Applications Act, which would ban TikTok in the U.S. as of Jan. 19, 2025.
- The bill requires TikTok’s owner, ByteDance, to sell the app to a company that isn’t under the authority of a foreign adversary (ByteDance is currently a China-based company).
- The president could give a 90-day extension, but currently, the White House is deferring to the Department of Justice in response to a possible extension.
- If the ban is put in place, companies like Apple and Google would have to remove the app from their stores or face a potential $5,000 per user fine.
Why are small-business owners concerned?
According to the Pew Research Center, one in three U.S. adults uses TikTok, and in a recent survey, only 32% of Americans supported banning TikTok. Research has also found that 52% of Americans regularly get news from the platform. The average U.S. adult spends close to an hour on TikTok each day, and adults in the age 18–24 category spend more time than older generations. This level of engagement provides businesses like Sims’ with the audience they need to turn a profit.
TikTok shared in a court filing that it estimates small businesses and social media creators could lose $1.3 billion in earnings and revenue in one month if the ban occurs. In TikTok’s own 2024 economic report, it stated that it helped drive $15 billion in revenues for small businesses in the U.S. in 2023.
Many business owners want to make their own choices about platform use and privacy, which has been the main concern about TikTok. “I totally understand that not knowing where the data is can seem creepy and challenging, but in fact, [what] matters is [that it’s] not held equally as apparent to other social media for other apps in general,” says Lauren Petrullo, CMO and founder of Mongoose Media, a digital marketing agency, and founder of Asian Beauty Essentials in Orlando, Florida.
TikTok data concerns
“I don’t think the American public in general cares about where their data is being stored, because they never actually look at that,” Petrullo adds. “We wear smart devices all the time. I couldn’t tell you where my loop data is being stored, and while I should care, in reality I don’t. There’s too many other things for me to worry about.”
Some TikTok users want improved data management, but not at the expense of a full and seemingly randomly chosen platform ban. “The TikTok ban is such a big deal because people are worried about how our data is being used and if it’s safe,” says Ciara Reed-Kennedy, cofounder of Simpson & Reed and entertainment attorney in the Los Angeles area. “Is there potential for misuse by foreign governments? The government has to figure out how to protect privacy without taking away our rights or shutting down an app millions rely on for their businesses [and] social media influencing, or otherwise.”
As with many loaded topics, this one is multifaceted, both due to the presidential turnover and continued conversations around free speech. As for Petrullo, she says she finds it “unconstitutional.”
“This is a complete restriction on people’s First Amendment and right to free speech,” she adds. “So I’m so wholeheartedly against it, not just as an individual, but also for my small-business clients…. If TikTok is allowed to be banned, what’s next? And then what are the ramifications of other countries following suit?”
What to expect next from the legal process
If you aren’t in the mood to break out your high school government class notes, here’s what to expect from the upcoming trial.
To get to the Supreme Court, a case usually has to start in a lower district court and go through appeals in higher courts. If the case involves important questions about the Constitution or federal law, like the TikTok ban does, the Supreme Court can be asked to review it by filing a request called a writ of certiorari. The Supreme Court selects a relatively small number of cases to review each year, and if the Court agrees to hear one, lawyers present written arguments and speak before the justices, who then make a final decision or can choose to send the case back to the lower courts.
In TikTok’s case, the Supreme Court has agreed to listen to arguments concerning the ban on Jan. 10. Unlike most trials that can last for days or weeks, the Supreme Court has allotted two hours to listen to the arguments before making a decision. It also hasn’t blocked the law in question, which signals that it may make a decision prior to the Jan. 19 deadline.
Why business owners say they need TikTok—beyond just profit
Sims likely won’t ever meet her customers, who keep coming back for their favorite soy wax melts, room sprays, warmers and candles. There are plenty of other places where they can buy those same items too. So what distinguishes her from other businesses?
Personal interaction, she says, thanks to TikTok.
“It allows customers to connect with me as a person—without ever needing to step into a physical store,” Sims says. “Social media has become the new storefront, giving people the chance to support businesses they truly connect with…. People stick around and become lifelong customers when they know, trust and like the owner.
“Unlike other platforms that focus more on polished, ‘highlight reel’ content, TikTok thrives on more raw footage—behind-the-scenes, in-the-making, answering questions ‘face-to-face,’” she continues. “Sure, there are filters, but it still feels like the realest of all the apps.”
She also loves TikTok Shop’s feature of buying directly in the app rather than directing customers elsewhere. “TikTok’s in-app shopping experience leads to higher conversions, and that’s been a game changer for my business,” she says. “I even brought in a marketing team to run Facebook and Instagram ads, but it was a complete flop. Even they couldn’t match the organic conversions I’ve seen on TikTok.”
What to do next if you rely on TikTok personally or professionally
Samantha Hicks, managing director and influencer marketing expert at Shine Talent Group, has been prepping business owners like Sims who rely on TikTok for a potential shift. “Short-term, backing up and reposting content is a great start, but long-term, creators should think about playing to the nuance of each platform,” she says. “Creators need to adapt their storytelling to fit the nuances of each platform while maintaining the authenticity that draws their audiences in. For instance, using Instagram broadcast channels or YouTube Shorts allows creators to replicate the intimacy and immediacy that TikTok fans love.”
Shine Talent Group’s current focus is on safeguarding talent involved in TikTok-first campaigns running through Jan. 19.
“Some brands are asking creators to repost content to Instagram as a fallback for TikTok campaigns in case of a ban. However, if not done strategically, this approach could oversaturate the creator’s audience, leading to decreased engagement and unfollows from the creator’s community,” Hicks says. “Reposting TikTok campaigns to Instagram could disrupt the balance of organic to sponsored content on the creator’s Instagram account, potentially leading to long-term harm to their business.
“Our plan is to work with brands to ensure their campaigns are successful and marketing goals are met,” she adds, “while also ensuring [that] our clients’ accounts maintain a healthy balance of organic to sponsored content and that they’re fairly compensated in relation to the platform the content is being posted to. While many creators and consumers are skeptical about a TikTok ban, we’ve encouraged our talent to act as though it is imminent. Our advice is to prepare for the worst while hoping for the best.”
Short-term recommendations
Between now and Jan. 19, Hicks recommends that creators and marketing teams take the following actions:
- “Capture audience emails through simple forms or newsletter sign-ups to retain their most loyal followers.
- Continue posting on TikTok to maintain momentum, especially if a last-minute resolution allows the platform to remain operational.
- Strategically repurpose content across platforms while preserving the balance of organic to sponsored content.”
“We anticipate that platforms such as Meta and Snapchat may introduce new features to capture TikTok’s escapism and appeal,” she adds. “Creators who diversify their content and audiences now will be well-positioned to navigate any shifts in the social media landscape.”
Looking ahead
As with many legal proceedings, don’t panic—change won’t come quite as quickly as you’d think.
“Until there’s a clear decision, it’s going to keep dragging on,” says Shardé Simpson, a New York-based entertainment attorney and cofounder of Simpson & Reed. “I personally don’t think it will be banned in January like so many people are saying.”
But that doesn’t mean you shouldn’t do anything. Now is still a great time to prepare your business to jump platforms if TikTok is eventually banned.
“While the future of TikTok remains uncertain,” Hicks says, “our approach is proactive: supporting our talent in safeguarding their businesses while helping them explore opportunities for growth across other platforms.”
Photo by Ringo Chiu/Shutterstock.com
