TikTok Shop’s New Ad Policy Risks Alienating Merchants

As TikTok readies itself for the expected sale of its U.S. business to a new venture controlled by American investors, the company is trying to boost its commerce business, TikTok Shop. But the measures it has taken risk alienating merchants who sell on the shopping service.

TikTok Shop in recent weeks has begun pushing its sellers to switch to a new automated ad-buying tool that promotes creator-made videos linking only to TikTok Shop. Merchants say that gives them less control over their ad budget and which videos are promoting their products. More importantly, merchants say TikTok says it is mandating that if they’re participating in the site’s big fall promotions—for example, its upcoming Black Friday sale—they have to buy ads using the new tool, GMV Max.