Imagine a factory with years of experience in traditional manufacturing, eager to ride the wave of Southeast Asia's booming e-commerce market but held back by lack of digital selling experience. Previously, stringent qualification requirements kept such businesses at bay. Now, a significant policy shift by TikTok Shop is opening new doors for these enterprises.
TikTok Shop, the e-commerce arm of video-sharing giant TikTok, is implementing strategic policy adjustments to welcome more diverse merchants, particularly in the high-potential Southeast Asian market. These changes not only lower entry barriers but also create fresh opportunities for cross-border commerce.
Identity Verification: Building Trust in the Platform
Effective September 10, 2024, TikTok Shop's Southeast Asia cross-border platform will implement mandatory identity verification. This measure authenticates sellers' submitted documents and ensures compliance with platform requirements. The verification system will enhance TikTok Shop's overall credibility and strengthen consumer trust in its products and services. For e-commerce newcomers, this serves both as regulation and protection, helping them integrate faster into the platform ecosystem.
Business Licenses: No Longer Require E-commerce Experience
TikTok Shop has significantly relaxed its business license requirements, now permitting applications from companies without prior e-commerce operations. This means traditional businesses with valid licenses can easily join TikTok Shop and leverage its traffic advantages to quickly access Southeast Asian markets.
Individual Sellers: New Players in Cross-border Trade
Since June 13, 2024, TikTok Shop began allowing individual merchants with cross-border or domestic e-commerce experience to register. This further reduces entry thresholds, encouraging more independent sellers to join and inject new vitality into Southeast Asian markets. With their flexible operations and market sensitivity, individual sellers may carve out significant opportunities on TikTok Shop.
Southeast Asia: The New Frontier for E-commerce
The Southeast Asian e-commerce market is experiencing rapid growth with substantial commercial potential, attracting global sellers. TikTok Shop's policy adjustments provide crucial opportunities for smaller but promising sellers and businesses entering the region for the first time. Through TikTok Shop's cross-border platform, they can reach Southeast Asian consumers more affordably and efficiently.
Operational Support: Helping Sellers Gain Foothold
To assist sellers in adapting to Southeast Asian markets, TikTok Shop offers various incentive programs including free shipping for first orders and new task rewards. These measures aim to reduce operational costs for new sellers, enhance competitiveness, and help them establish market presence faster.
Simplified Registration Process
TikTok Shop continues streamlining its registration procedures:
- Document Preparation: Sellers must prepare business licenses, legal representative information, shipping and return contacts, ensuring all documents are authentic and compliant.
- Account Registration: Sellers access TikTok Shop's registration page, select eligible countries, and register using overseas phone numbers or email addresses.
- Verification and Approval: After submission, sellers await platform review. Upon approval, they pay deposits and begin listing products.
Deposit System: Regulating Operations
TikTok Shop requires cross-border sellers to pay deposits before commencing operations. Deposit amounts vary by product category, with each category requiring separate payment. This system standardizes seller behavior and protects consumer rights while reminding sellers to fully understand relevant policies beforehand.
Special Requirements for UK Market
For TikTok Shop UK cross-border stores, sellers must meet additional conditions beyond basic requirements. These include operational experience on major Western platforms like Amazon or eBay, and linking to a local UK TikTok store account. These measures ensure sellers possess adequate experience to serve UK consumers effectively.
TikTok Shop's policy changes signal new growth opportunities in cross-border e-commerce. For businesses, embracing these changes may prove crucial for standing out in competitive markets and achieving rapid expansion.