Amazon sellers start rushing in! TikTok removes 2 million entry threshold

At the beginning of this year, setting up TikTok’s US site became a new trend in the cross-border circle, but a single store must have a GMV of US$2 million per year, so many people were turned away.

On June 13, TikTok updated its entry standards for the US site and no longer required Amazon sellers to have store turnover. The industry was in an uproar, and some sellers immediately applied for registration after hearing the news. The application has now entered the review stage. A large number of sellers are ready to rush to TikTok.

TikTok removes performance requirements for Amazon sellers

This week, TikTok Shop expanded its cross-border stores in the United States to recruit sellers whose store entities are based in mainland China and Hong Kong, China.

Now, in addition to the basic entry standards - local warehousing and logistics and the ability to ship locally in the United States, experience in operating mainstream U.S. cross-border platforms or independent sites, and good store ratings, TikTok has also adjusted the entry threshold for sellers on different platforms. The biggest change is that it no longer requires store GMV from Amazon US sellers.

Amazon US Sellers

For sellers who want to enter TikTok using the self-operated model ( SC), the store evaluation score must be no less than 4.0, the furniture/men's clothing and underwear categories must be no less than 3.8, the operating time must be no less than 3 months, and the account health score must be above 250 points; for sellers who want to enter TikTok using the supply model (VC), there must be a record of Amazon supply for nearly 6 months.

eBay/Walmart US sellers

Sellers who wish to join the self-operated model of these two platforms must have a GMV of no less than US$500,000 in the past 12 months, an operating time of no less than 3 months, an eBay store positive review rate of no less than 90%, and a Walmart store score of no less than 4; merchants who wish to join the Walmart supply model must have a Walmart supply record for the past 6 months.

DTC independent website sellers in the US market

For such sellers to settle in, their rating on the e-commerce review website Trustpilot should be no less than 3.8 points, and the total number of fans of the corresponding brand on major overseas social media platforms should be no less than 10,000.

In addition, sellers must keep the operating entity of the Amazon/eBay/Walmart/independent store consistent with the entity entering TikTok Shop.

( The latest entry requirements for TikTok Shop in the US)

The removal of the $2 million threshold for a single store will quickly attract sellers. This news has attracted great attention in the Amazon seller circle, and most sellers are excited about it and have expressed their desire to "start doing it."

Yesterday, TikTok welcomed a group of new sellers. One of the sellers lamented that he had lost his temper after selling on Amazon and could only try other platforms. After learning that TikTok Shop had relaxed the conditions for cross-border stores and removed the $2 million sales limit for a single store, he immediately sorted out the information and registered, and has now entered the registration review stage. Just two days ago, the service provider who could help him register a store quoted him 1,000 yuan.

Why the platform lowers the entry threshold

Some time ago, the seller @跨跨小汪哥 received the news that TikTok Shop was going to lower the entry threshold.

"It is normal for TikTok to cancel the sales requirement. The threshold of 2 million US dollars for a single store will indeed block many sellers, so it is only a matter of time before the platform relaxes the requirements. The initial entry requirement of 2 million may be to test the pressure on the platform or the overall situation. Now it is a reasonable change to fully relax it." He said, "It is inevitable that more sellers are needed to build a platform. Walmart has basically abolished the performance restrictions. As long as the information is true, you can basically pass the registration. TikTok is also following this trend. After completing some tests, it began to absorb as many Chinese sellers as possible. "

He also pointed out that TikTok has set a big performance target this year, and in order to achieve it, it is also necessary to increase the number of sellers. Next, there will definitely be a wave of new sellers entering TikTok .

Previous reports showed that TikTok has set a considerable growth target for its U.S. e-commerce business in 2024, and expects the business scale to expand tenfold to $17.5 billion. TikTok's lowering of the entry threshold at this time can allow more sellers to participate and accelerate the achievement of GMV targets.

So why are Amazon sellers no longer required to have store performance, while sellers on eBay and Walmart platforms still required to have certain performance? Seller @跨跨老张 believes that although the entry threshold for TikTok has been lowered, it is still a challenge for many sellers to prepare goods in overseas warehouses, and the coping capabilities of sellers on different platforms vary.

" More than 90 % of Amazon sellers in North America use FBA and understand the cycle and risks of preparing goods overseas . Most eBay sellers ship their own goods. Although Walmart requires local delivery or WFS, the sellers' completion rate is limited. " In comparison, Amazon sellers are more in line with TikTok's operating requirements.

TikTok Shop US site is booming

TikTok and cross-border sellers have the same need for growth. The platform has significantly lowered the entry threshold, which can quickly attract a large number of sellers and brands to enter the market and enrich the product range. For sellers, TikTok has been making great sales progress. Previously, they had to wait outside the door due to poor performance. Now, this overwhelming wealth can finally be theirs.

Some sellers analyzed that with the entry of a large number of new sellers, the situation of sellers who settled in earlier will change. First, the competition in the category will intensify, and second, the official service capabilities will tend to the 80/20 principle. However, TikTok's market cake has become larger and can accommodate more sellers to sell.

According to data from Didagou, from May 31 to June 6 , the weekly GMV of TikTok Shop in the United States reached 104 million US dollars, with an average daily GMV of about 14 million US dollars. The five categories of products with the highest GMV were : beauty and personal care, women's clothing, sports and outdoor, health care products, and mobile phones and digital products.

The just-concluded summer promotion has made TikTok more visible. TikTok Shop said that the peak GMV of the US promotion in a single day exceeded that of last year's Black Friday promotion, and the platform's overall GMV increased by 129%, of which the content GMV increased by 129% and the shelf GMV increased by 132%. The live broadcast data was also refreshed, with the sales of anchor Stormi exceeding 1 million in a single live broadcast , setting a new record for the sales of goods in a single live broadcast room in the United States , which caused a sensation.

During the promotion, the performance of fully managed sellers increased, with order volume increasing by 141%, payment GMV increasing by 136%, and live broadcast GMV increasing by 194%. Hot-selling categories include home and outdoor industry, fast-moving consumer goods industry, digital hardware industry, women's and children's clothing industry, men's sportswear, underwear and pajamas industry, shoes and bags industry, etc.

The self-operated model sellers also experienced an explosion, with order volume increasing by 134%, payment GMV increasing by 133%, and the number of active products increasing by 114%. The top ten hot-selling products are false eyelash sets, women's one-piece swimsuits, in-ear Bluetooth headphones, electric shavers, floral wide-leg jumpsuits, 3-piece furniture sets, ice machines, women's waist shaping clothes, car emergency chargers, and mini desktop treadmills.

As sellers' performance is bullish, TikTok has begun to send friendly signals.

In early June, TikTok Shop cross-border e-commerce released a special policy of "100 million yuan club", hoping to help cross-border self-operated merchants increase GMV in the US through incentives such as commission reduction, logistics support, and special plans for potential hot products. This policy will be given priority to some key cross-border self-operated merchants in the US region of TikTok Shop for support.

Now, TikTok has lowered the threshold and officially issued an invitation. Will you join this platform?