From Nasdaq: 2024-03-26 22:16:37

Chinese e-commerce vendors looking to sell on TikTok Shop in the U.S. as an alternative to Amazon are unhappy with new rules tightening enforcement. TikTok now requires 51% U.S. ownership, sparking concerns among Chinese sellers. The platform faces regulatory risks and aims to balance growth while competing with bigger rivals like Shein.

TikTok’s stance on enforcing rules for international sellers may impact Chinese vendors on the platform. Some vendors are considering reducing resources on TikTok or finding U.S. partners. TikTok’s spokesperson maintains that policies for all sellers, including international ones, have not changed since the U.S. launch of TikTok Shop.

Chinese e-commerce sellers feel targeted by TikTok’s rules, with some reconsidering their investments in the platform. Amazon does not differentiate between U.S. and non-U.S. sellers, while TikTok’s stricter rules may be a response to political sensitivities in the U.S. during an election year. U.S. officials have raised security concerns about TikTok.

TikTok Shop in the U.S. has attracted Chinese vendors seeking an Amazon alternative. The platform generates revenue through seller fees and delivery cost subsidies. Chinese sellers have been drawn to TikTok’s shop for its potential and are exploring new ways to navigate the changing rules. Collaboration with local partners may become more common.

Chinese businesses have leveraged TikTok Shop to expand their reach in the U.S. market. Sellers like Jackie Bai have seen growth on the platform, but concerns over shifting rules and requirements have prompted a rethink of their strategies. As TikTok positions itself as a competitor to Amazon, Chinese vendors navigate new challenges and opportunities.



Read more at Nasdaq: Chinese TikTok sellers complain of under-fire platform tightening US rule enforcement