8 Tips Overviews:Reasons Behind TikTok Shop Closures

8 Tips Overview:Reasons Behind TikTok Shop Closures

  1. Strict IP Monitoring: TikTok has intensified crackdowns on IP usage. Operating or logging in with the same IP can trigger associations with intellectual property infringement or previously banned shops. If multiple shop accounts are operated from the same network environment or device, such as sharing an IP address, the system might treat them as linked accounts. If one account faces issues, others may be affected. It is crucial for each shop to use a unique IP for login to isolate and safeguard its environment, avoiding interference. Account association remains a predominant reason for closures, especially in high-risk zones.
  2. Negative Product Reviews: Poor post-sale services leading to a high volume of negative reviews.
  3. Bulk Listing of Products: Massive inventory listing can result in discrepancies, with the actual products not matching the advertised ones. It’s advised for new shops to start with fewer items, about 3-5, and gradually increase the inventory based on sales performance, rather than listing dozens or hundreds of products all at once.
  4. Low-Priced Items with High Shipping Costs: Selling items at low prices such as 9.9 with a significant shipping fee of 20 can draw platform scrutiny. Last year, platforms began regulating this practice of low pricing coupled with high shipping fees.
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  5. Order Fraud: Some sellers opt for illicit means such as artificial order placements to boost sales quickly. This severe violation leads directly to store closure upon detection.
  6. Falsified Logistic Information: Utilizing invalid tracking numbers, or marking items as shipped without actual dispatch can be deemed as non-compliance.
  7. Sale of Prohibited or Counterfeit Products: Listing banned or fake products inevitably results in store closure as it violates platform policies.
  8. Tax and Identity Verification Failures: This issue is relatively rare as most sellers either work through service providers or apply for licenses themselves, ensuring the information is accurate. Problems typically arise from submitting incorrect tax information or non-compliant data, but the likelihood of triggering a closure upon re-evaluation is minimal unless the seller has obtained store credentials that the legal entity cannot corroborate.

Whether operating a single store or managing a cluster of POP shops, it is safest to use one’s identity or team member’s information, with third-party certification of financial transactions advised for more security. Policies are more lenient now, and third-party qualifications are not mandatory.

Regarding Unbanning: Many closures stem from logistic issues. Sellers using virtual warehouses or shared consignments failing to provide genuine delivery proofs should ensure clarity on dispatch processes when partnering with overseas warehouses or logistic firms, including the availability of packing and dispatch video evidence and warehouse rental agreements.

Though platforms have relaxed entry requirements, operational demands have never been loosened. Sellers are expected to have substantial capabilities. For those requiring large inventory, fully managed platform services are available. Banned sellers should consider partnering with overseas warehouses, negotiating cooperation methods, and coordinating appeals to recover their shops effectively. Post-recovery, compliance with platform shipping standards is crucial.

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