As TikTok gains new U.S. owners in Oracle, Silver Lake, and Abu Dhabi-based MGX, the platform is moving quickly to centralize its marketplace. In an email to advertisers sent this week and reviewed by ADWEEK, TikTok announced it will soon require U.S. merchants to fulfill orders through the platform’s proprietary logistics services—effectively stripping brands of the ability to handle their own shipping.
The mandate, which begins phasing in on Feb. 25, marks the end of ‘Seller Shipping’ on the platform. By the end of March, any business selling to TikTok’s 170 million U.S. users must hand over their logistics to the company’s internal network or risk being cut off, according to the memo. Those who join the platform after Feb. 9 will be required to use TikTok’s logistics network from day one, the email reads.
“Seller Shipping will be discontinued,” the email stated. Under the new rules, brands must either move inventory into TikTok’s warehouses via Fulfilled by TikTok (FBT) or use Upgraded TikTok Shipping, where the platform controls the labels and carrier selection. While sellers can still use certain approved software—such as AfterShip, 4Seller, and ShipHero—those systems must be fully tethered to TikTok’s logistics API.
Historically, TikTok Shop has operated on a seller-driven model similar to Shopify, where merchants had the freedom to choose their own shipping partners and manage their own boxes. This move pushes the platform into a more centralized, Amazon-style distribution network, where TikTok dictates the logistics operation.
According to Michelle Wiltz, managing director of paid social at Brainlabs, this change is about control. “TikTok wants tighter ownership of the post-purchase experience–shipping speed, tracking, returns, and customer satisfaction–because those elements directly influence conversion rates, repeat purchase, and overall platform trust,” she said. “Sellers lose autonomy over shipping strategy and margin optimization, which means brands will need to re-run unit economics and decide whether TikTok Shop is primarily a growth lever or a profitability lever because it won’t be both for everyone.”
For established brands, the shift is a “logistical nightmare,” according to Ian Blair, chief executive officer of the premium laundry brand Laundry Sauce. Laundry Sauce moves tens of thousands of orders monthly on TikTok Shop and drives six figures a month, Blair said, adding that the policy could drive up costs while compromising the white-glove experience brands work hard to maintain.
“There is a world in which this is not a cost savings to us—it’ll actually increase costs and quality goes down,” Blair told ADWEEK, noting that TikTok representatives confirmed the changes to him on a call Thursday. Laundry Sauce currently pre-packs products in custom branded boxes to ensure quality—a level of control that becomes precarious when an inherently social media company takes the wheel.
“These guys are a social media company. They’re not Amazon,” Blair added. “Amazon is fairly good at this, and even they don’t get it perfectly.”
