TikTok Small Store under Cross-Border Category Control Policy: The End of the Road to Shelf Placement?

New policy released

Recently, TikTok Small Shop released cross-border category control policy, stipulating that sellers must determine a main category before February 1, and in the future, they can only sell products of that main category on all country sites. This move restricts sellers' product sales.

New store inspection limit single

After the update of the new store inspection limit single rules, it requires that the daily order quantity for new open shops for regular recruitment and fixed invitation sellers should not exceed 10 orders and 50 orders, and the order quantity within 60 days should reach at least 300 and 1000 orders to lift the limit single.

Policy impact

These new policies indicate that the era of TikTok's refined operation has arrived, bringing challenges to product stocking and store group sellers. Although confusing, some sellers believe that the release of these policies is to promote high-quality Chinese industries to go global.

Obstruction on the road to stocking

The new policy limits the space for TikTok Small Shop sellers to stock goods, requiring them to operate in a single category. This means that sellers must be more focused on the business they engage in to ensure product quality and rectify the platform's business environment.

Return to vertical categories

This move is also to solve the supply chain problem, ensure the quality of platform products; it will also affect the stocking sellers. TikTok's small store encourages sellers to operate professionally, focus on vertical categories, pay more attention to product quality and compliance.

Compliance refinement operation: Growing pains

The development of cross-border e-commerce has experienced a stage of rough development, and it is currently transforming towards compliance and refinement operation. For TikTok, as a strategic project for China's overseas expansion, TikTok's small store bears the mission of Chinese brands going overseas.

Recently, TikTok's small store released a cross-border category control policy, strengthened the inspection period provision for new cross-border stores, aiming to eliminate inferior sellers, attract more powerful sellers to settle in, and lay the foundation for refined operation.

Challenges and Opportunities: The path to branding

The recent policy adjustments of TikTok's small store have caused hot discussions in the industry. Some experts believe that any commercial company will eventually return to compliance, and TikTok's small store is no exception. The introduction of the inspection period for new cross-border stores has attracted some high-price, high-profit brand sellers, focusing on product quality and service quality.

In the past, TikTok stores mainly focused on low-priced products, but with the release of the single-category management policy, some sellers have started to raise prices. The challenges brought by low-price competition have made some brand owners hesitant, affecting the overall platform image.

The next development goal of TikTok stores is branding. Compared to platforms like Amazon, TikTok Shop conducts business relying on short videos, live broadcasts, and other forms, with product differentiation and content promotion being key. However, the current strategy of stocking and selling by the platform sellers is contrary to branding, relying only on a large number of product stocking to get explosive sales.

Facing challenges: Attracting brand sellers

In the European and American markets, TikTok's e-commerce business has not made a breakthrough. The UK site in the European region has been complained about counterfeit and imitation products; in the United States, the competition in the market is fierce, with major e-commerce giants entering the market one after another.

Most European and American brand merchants prefer to expand their business on independent websites, while TikTok's small store relies on Shopify in the supply chain and has not truly attracted these brand customers. Against the backdrop of fierce competition in the Chinese supply chain, TikTok's small store also faces the embarrassment of missing out on high-quality factory sellers and brand sellers.

Future Path: Branding is the Winning Strategy

TikTok's small store restricts sellers to operate in a single category and advises sellers to focus on vertical categories, striving to improve the overall customer experience. Fine operations may only be the first step, branding is the key to long-term development. How to attract brand sellers to join, break away from the impression of low-priced goods, is the fundamental issue that TikTok's small store needs to address.

Breaking the low-price curse, TikTok's small store needs not only to overcome price competition but also to establish brand power, win consumer trust and recognition. The future development path is still tortuous, but only by adhering to a branding strategy, TikTok's small store can go further.