In a strategic move to expand its footprint in the U.S., TikTok Shop has announced a significant update to its self-operation mode for cross-border sellers, lowering entry barriers to attract a more comprehensive array of merchants.
The latest official data reveals a robust 40% quarter-on-quarter increase in active cross-border merchants on TikTok Shop in the U.S. during Q1 2024. This growth surge coincides with the recent launch of the “100 Million Club” initiative, designed to help cross-border self-operated merchants rapidly achieve substantial GMV (Gross Merchandise Value) in the U.S. market.
The new entry criteria target Chinese mainland and Hong Kong-based entities equipped with local warehousing and logistics capabilities in the U.S. These businesses, provided they have operational experience on platforms such as Amazon, eBay, Walmart, or their independent sites, are now eligible to join TikTok Shop under the revised standards.
In a notable departure from previous requirements, TikTok Shop has eliminated the GMV benchmark for Amazon merchants, which previously demanded proof of over $2 million in annual U.S. GMV per store.
This policy shift is expected to draw a broader spectrum of cross-border e-commerce sellers, including those from Amazon, eBay, Walmart, and independent platforms, fostering a more diverse and vibrant seller ecosystem on TikTok Shop.
Key Highlights of the New Policy:
Amazon Self-Operation (SC) Merchants: Stores must have a rating of 4 or higher, a minimum operational history of 3 months, and an account health score of at least 250.
Amazon Vendor Central (VC) Merchants: Eligibility is granted to merchants with a supply record within the last 6 months.
eBay/Walmart Merchants: Individual store GMV must exceed $500,000 in the past 12 months, with a minimum operational history of 3 months, and the store’s positive rating or score must meet specific standards.
Walmart Vendor Central Merchants: Eligibility is granted to merchants with a supply record within the last 6 months.
Independent Site Merchants: Must demonstrate operational experience with a U.S. market DTC site, have a Trustpilot score above 3.8, and a combined overseas social media following exceeding 10,000.
This strategic update underscores TikTok Shop’s commitment to diversifying its merchant base and enhancing its competitive edge in the dynamic U.S. e-commerce landscape. As TikTok Shop continues to refine its market entry strategies, it remains poised to capitalize on the burgeoning opportunities within the cross-border e-commerce sector.