On November 19, TikTok announced a significant update to its entry policy for overseas sellers. Chinese sellers can now easily open a TikTok US cross-border shop with a valid mainland China or Hong Kong business license and local warehousing capacity in the US.
A U.S. federal appeals court is set to decide by December 6 on whether to uphold a law requiring ByteDance to divest TikTok's U.S. assets by January 19, or face a ban. President-elect Donald Trump has stated he will not allow TikTok, used by 170 million Americans, to be banned.
Here's a summary of the entry process for Chinese mainland and Hong Kong sellers to open a TikTok US cross-border shop:
Preparation of Entry Information:
Provide a valid business license (self-employed individuals are excluded).
Meet US local shipping requirements.
Ensure products comply with local export regulations and platform standards.
Experience with third-party e-commerce platforms is beneficial but not required.
Register for a TikTok Account:
Visit the TikTok Shop cross-border official website.
Register using a valid phone number and email.
Obtain a verification code and set a password.
Fill Out the Entry Application Form:
Select "North America" and "General Entry."
Provide corporate and store information.
Enterprise Information and Document Upload:
Enter detailed enterprise information.
Upload necessary documents such as a business license, legal ID, and facial recognition verification.
Store Basic Information:
Set the store name in English (unique across the network).
Choose main categories consistent with existing US cross-border platforms.
Optionally, create a TikTok account with the store name and logo.
Wait for Review:
TikTok reviews the application in 3-10 working days.
Results are communicated via email.
Detailed onboarding guide process can be found on the latest onboarding guide for cross-border merchants in TikTok shop academy.
Previously, TikTok's entry requirements for overseas sellers were extremely demanding; if an international seller wanted to enter TikTok, your entry business had to be registered in the U.S., and you needed to designate a representative for your company in the U.S. (if you're not a U.S. citizen), who would take full control of your account, manage your TikTok Shop USA account and make sure that everything was in line with the platform's guidelines.
And while many Chinese sellers have used U.S. entities to be recognized as U.S. merchants on the platform, these regulations mean that they need to re-register as overseas sellers, and they say that overseas sellers receive less attention and support, which puts them at a disadvantage compared to U.S. TikTok sellers.
There are a number of organizations that say they can help your store successfully register on TikTok, but the risky and uncontrollable factors cause sellers to shy away.
The U.S. House of Representatives passed a bill in March of this year: it would give the social media giant's Chinese parent company, ByteDance, six months to sell its controlling stake or the app would be blocked in the US.
And now a U.S. federal appeals court will decide by Dec. 6 whether to uphold the law requiring ByteDance to divest TikTok's U.S. assets by Jan. 19 or face an injunction.
President-elect Donald Trump has said he will not allow TikTok, which is used by 170 million Americans, to be banned.
TikTok's move to lower the barriers to entry also seems to indicate that it is clear that it will not be banned in the U.S. and that it will take more share of the U.S. market.
Opportunities with TikTok's new policy
The TikTok app is valued at $200bn in 2023, according to statista, and as of January 2024 TikTok had around 150 million US users. These figures show that TikTok is just one of the most popular software in the world, especially among the younger age groups.
TikTok has transformed the social media landscape with its short dances and Gen Z commentaries. Its popularity highlights key tech trends: the shift from desktop to mobile, a preference for short videos, and innovative advertising strategies.
Since its launch in September 2023, TikTok Shop has become one of the most popular online shopping platforms, offering consumers a wide variety of products. TikTok Shop offers success stories that highlight its impact on both sellers and buyers. It provides engaging advertising content, live product presentations, and great value for money, creating a dynamic shopping experience.
27 Nov, 2024
