What Does E-Commerce Look Like at RedNote?

Rye

Mar 12, 2025

3 minutes

Shortly after taking office, President Trump signed an executive order that delayed the determination of TikTok's US fate until April 5th. That means in just 3 weeks, TikTok could be banned again, or have a new owner. Social commerce platform RedNote, also known as Xiaohongshu, surged to the top of the Apple App Store’s rankings around the signing of this initial executive order, making headlines in the process. Its sudden popularity was fueled, of course, by waves of so-called “TikTok refugees" seeking a new digital home.

Practically overnight, RedNote’s active user base has skyrocketed from 700,000 to 3.4 million— and a reported 50% of their users have made an impulse purchase directly in-app. On the eve of another ByteDance toss-up, what does e-commerce look like at RedNote?

Practically overnight, RedNote’s active user base has skyrocketed from 700,000 to 3.4 million— and a reported 50% of their users have made an impulse purchase directly in-app. On the eve of another ByteDance toss-up, what does e-commerce look like at RedNote?

Practically overnight, RedNote’s active user base has skyrocketed from 700,000 to 3.4 million— and a reported 50% of their users have made an impulse purchase directly in-app. On the eve of another ByteDance toss-up, what does e-commerce look like at RedNote?

How RedNote Does Shopping

Ironically, RedNote is also a Chinese-owned app. Its video-first, elegant UI quickly won over TikTok expatriates, who praised its snackable content experience. While TikTok users remain in limbo awaiting the outcome of Trump’s executive order, many are already deeply immersed in RedNote’s shoppable video ecosystem.


RedNote generates revenue through multiple streams, including advertising, e-commerce commissions, marketing tools, and brand collaborations. Its built-in shop feature collects deposits and commissions from businesses, with rates starting at 5% for stores earning over 10,000 RMB (approximately $1,380 USD) per month. Sources indicate that over 90% of e-commerce sales made on RedNote take place over live streaming, whereas only about 50% of TikTok users have reported making a purchase on or after a live stream. RedNote places a large focus on community-driven reviews and live product recommendations.


While TikTok Shop offers immense scale and a well-established e-commerce infrastructure, RedNote provides sellers with a growing but highly engaged user base and multiple monetization opportunities. TikTok appeals to a mixed demographic, whereas RedNote reports that a whopping 79% of its users are women aged 18-34. This presents a targeted opportunity for brands looking to reach this valuable consumer segment—one projected to drive $4.8 trillion in e-commerce spending by 2025.


RedNote’s integration with Shopify further strengthens its positioning in the social commerce landscape. However, its Chinese ownership remains a factor for brands and creators evaluating long-term alternatives to TikTok. Another key consideration is language accessibility—while RedNote offers multilingual support, its interface and key logistical details are still largely geared toward Mandarin-speaking users. Additionally, like any global selling platform, navigating currency exchange rates and product regulations presents logistical challenges.

As TikTok’s future in the U.S. hangs in the balance, RedNote has seized the moment—but whether it will maintain its momentum remains to be seen.

As TikTok’s future in the U.S. hangs in the balance, RedNote has seized the moment—but whether it will maintain its momentum remains to be seen.

As TikTok’s future in the U.S. hangs in the balance, RedNote has seized the moment—but whether it will maintain its momentum remains to be seen.

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