The e-commerce world is buzzing with TikTok Shop’s latest move. In early 2025, the platform launched a sweeping enforcement campaign, shutting down non-compliant stores and signaling a strategic pivot—from aggressive growth to sustainable operations.
With up to 80% of some sellers’ stores closed, the message is clear: quality over quantity is the new mantra.
(Image source: unsplash)
What Happened?
In early 2025, TikTok Shop made headlines with a massive enforcement campaign, shutting down thousands of non-compliant stores and tightening seller requirements. Reports indicate that up to 80% of some sellers’ stores were closed, with service providers seeing 50% of their clients’ shops terminated.
The crackdown focused on three high-risk seller categories:
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New Stores (<1 Year Old)
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Stricter probation rules: New sellers must now hit 500 orders within 30 days while keeping their negative feedback rate below 0.4%.
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Extended monitoring: Even after meeting initial targets, stores face an additional 60-day observation period.
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Why? Many new sellers expanded too quickly, leading to poor customer service, inventory mismanagement, and quality control issues—all of which hurt TikTok’s reputation.
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Identity-Fraudulent Stores
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Illicit registrations: Stores using fake or stolen U.S. identities were immediately banned.
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Low-cost, high-risk setups: These stores often cost just **$100 to create** and relied on dropshipping or virtual warehouses, making them prone to scams.
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No appeals: Since registration details were falsified, these sellers had no recourse once shut down.
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IP-Related Violations
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Blacklisted IPs: Stores operating from flagged IP addresses (often linked to fraud) were mass-terminated.
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Network shutdowns: If one store on a shared IP was caught violating rules, all connected stores were closed, disrupting large-scale fraudulent operations.
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This move follows TikTok Shop’s $6.5 billion in sales (Jan–Nov 2024) and reflects a strategic shift—from rapid growth to sustainable, compliant operations.
Why the Crackdown?
TikTok Shop’s explosive growth came with growing pains. Fraudulent sellers and subpar operations risked platform integrity, eroding consumer trust. By enforcing stricter rules, TikTok aims to:
• Elevate seller quality: Probation periods ensure only committed sellers thrive.
• Combat fraud: Fake identities and IP abuses undermine legal and operational standards.
What Should TikTok Sellers Do Now?
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Prioritize Compliance:
• Verify all registrations and IPs.
• Maintain transparent inventory and customer service.
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Focus on Quality Metrics:
• Monitor feedback rates and order fulfillment speed.
• Use high-performing creatives (TikTok’s algorithm rewards engaging content).
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Leverage Managed Programs:
• TikTok’s new managed seller programs offer support for compliant operations.
TikTok Shop’s enforcement isn’t just about penalties—it’s a strategic bet on long-term credibility. For sellers, adapting means embracing transparency, agility, and data-driven decisions. As social commerce evolves, those who align with compliance-first platforms—and equip themselves with the right tools—will lead the next wave of growth.