TikTok Policy Overhaul: Major Changes to Merchant Entry Rules – A Must-Read for Businesses!
TikTok has recently implemented significant policy changes. Here’s a breakdown of critical updates to ensure compliance:
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1. Business Entity Restrictions
Banned: Sole proprietorships and individual-owned businesses can no longer register for TikTok U.S. stores.
New Requirement: Only Limited Liability Companies (LLCs) are eligible.
- Recommended for newcomers.
- Business registration must be older than 60 days.
⚠️ Note: A sole proprietorship ≠ a single-member LLC.
2. Jewelry Category Rules
Strict Invitation-Only System: Jewelry sales are now restricted to invited sellers. No invitation code = no access.
Solution: Apply for an invitation code 1 month in advance via the Jewelry Category Application Link.
3. Logistics Policy Updates
Dropshipping Banned: Sellers must now use FBA (Fulfillment by Amazon) or overseas warehouses for fulfillment.
Alternatives:
- Source products from platforms like Amazon, Shein, or AliExpress (self-managed overseas warehouse required).
- Rent a third-party warehouse for localized shipping.
4. Stricter Qualification Reviews
- Business License:
- Automatic OCR recognition technology scans submissions.
- ⚠️ Avoid errors like “S/O” being misread as “5/0.”
- Legal Representative Face Recognition:
- Use Alipay QR code scanning for higher verification success rates.
5. Tax ID Requirements
Mandatory for High Sales: GST (U.S. Sales Tax) registration required if annual sales exceed $20,000 USD. Non-compliance risks store suspension.
Free Registration: Complete via the IRS official website.
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