Hundreds of cross-border e-commerce sellers were caught off guard in early 2025 when TikTok abruptly terminated numerous U.S.-based shops without warning. New stores that had just processed their first orders—or even those that had recently paid the $500 security deposit—were swept up in the purge, with "shell accounts" and IP-linked stores suffering the heaviest losses.
Reports from affected merchants reveal the scale of the disruption: one seller reported losing their store after fulfilling 400 orders, while another saw their investment vanish immediately after submitting the required deposit. The sudden enforcement action has thrust compliance issues into sharp focus for TikTok Shop's international seller community.
The Compliance Crisis
Platform investigations indicate the closures primarily targeted stores with inconsistent registration details, policy violations, falsified documentation, or shared IP addresses. The crackdown follows TikTok Shop's October 2024 decision to lower U.S. marketplace barriers, which triggered an influx of sellers with varying operational standards. This rapid expansion reportedly allowed numerous non-compliant operators to enter the ecosystem, creating the conditions for the current regulatory reckoning.
Simultaneously, TikTok has maintained rigorous localization requirements while significantly escalating enforcement against policy-violating merchants. Recent updates to U.S. and U.K. cross-border shop requirements now mandate valid Chinese business registration certificates with specified operational timelines, alongside stricter limitations on eligible enterprise types.
The Path to Reinstatement
Some successful appeals reveal critical strategies: merchants receiving violation notices must first identify the specific infraction through TikTok's policy documentation or direct support inquiries. Effective communication with platform representatives—particularly through assigned Account Managers—proves vital when submitting appeals. Documentation must precisely address the violation type with verifiable evidence, and sellers should leverage every available appeal opportunity.
Industry Implications
While disruptive, the purge presents an evolutionary opportunity for cross-border commerce. The event underscores that sustainable TikTok Shop operations require strict policy adherence and proactive compliance measures. Industry analysts suggest sellers mitigate risk by diversifying sales channels beyond single-platform dependence.
Market observers recommend continuous monitoring of TikTok's policy updates, operational adjustments to meet evolving standards, and increased collaboration within seller networks. In an increasingly competitive cross-border e-commerce landscape, these measures may determine which businesses withstand future marketplace fluctuations.