TikTok Shop is implementing significant changes to its marketplace operations, shifting from a general merchandise approach to specialized single-category stores while opening new opportunities in the grocery sector.
End of the "Everything Store" Era
Effective February 1, TikTok Shop will enforce strict single-category operations for cross-border stores. This marks the end of the platform's previous "general store" model and ushers in a new era of specialized, vertical-focused stores.
Key implementation details include:
- Primary Category Selection: Stores operating in multiple categories must select one primary category by February 7. Stores that fail to make a selection will have one automatically assigned based on sales performance data from November-December 2022.
- Category Lock-in: Once selected, the primary category will apply across all country sites for that account, with other categories becoming unavailable for listing.
Grocery Category Opens for Business
In a major policy shift, TikTok Shop is lifting restrictions on grocery items, including pet food, through an invitation-only program.
The grocery category expansion includes:
- Initial Markets: Vietnam, Malaysia, Thailand, Philippines, and Singapore
- Eligible Entities: Companies registered in Mainland China or Hong Kong
- Product Categories: Instant meals, staple foods and condiments, beverages, snacks, and baking ingredients (alcoholic beverages remain prohibited)
Grocery Category Requirements
To qualify for the grocery category invitation program, sellers must meet stringent requirements:
- Valid business license (non-individual) with remaining validity exceeding one year
- Brand registration or authorization documentation
- Relevant food business licenses
- Overseas warehousing and fulfillment capabilities
- Local market compliance (including Thai FDA license for Thailand operations)
Strategic Implications
The policy changes reflect TikTok Shop's strategic shift toward quality-focused marketplace development:
- Transition from rapid growth to refined operations
- Enhanced user experience through specialized stores
- Market standardization to support sustainable development
Adaptation Strategies for Sellers
To succeed under the new policies, sellers should consider:
- Strategic category selection based on market analysis
- Supply chain optimization for product quality assurance
- Operational refinement across store presentation and customer service
- Brand development through content marketing
- Strict compliance with platform regulations
These changes represent both challenges and opportunities for TikTok Shop merchants as the platform evolves toward a more structured marketplace environment.