Chinese e-commerce merchants looking to sell products on TikTok Shop in the United States as an alternative to Amazon are concerned about measures the short video app has taken to strengthen enforcement of its regulations for overseas sellers launching stores on the site.
According to Reuters, TikTok, which faces the prospect of having to divest its US operations or being banned, has recently taken a tougher stance on enforcing its internal rules, according to five Chinese vendors on the site and an industry association that represents 3,000 Chinese stores selling products online.
TikTok is mandating that US organizations be 51% US owned and chaired by a US passport holder, according to the vendors and Winnie Wang, executive chairman of the Shenzhen Cross Border E-Commerce Association, China’s largest seller association situated in the manufacturing heartland.
Many Chinese vendors were recognized as US merchants on the platform, but the laws now require them to be re-registered as international sellers, which they claim receive less prominence and assistance, placing them at a disadvantage compared to US TikTok sellers, reported Reuters.
Ariel Ben Solomon is the Growth and Strategy manager at Ecomhunt. He is the host of the Ecomhunt Podcast. Can be followed on Twitter at @ArielBenSolomon
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