TikTok Shop Demands Total Brand Compliance for Platform Success, Executives Say

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6.15.2026

Quick Facts

TikTok Shop has sold more than $4.4 billion in beauty and wellness products since its 2023 U.S. launch
Brand executives describe TikTok as operating like a ‘mafia’ that demands exclusives and strict platform compliance
The platform generated $26 billion in global GMV in the first half of 2025, with U.S. sales up 120% year-over-year

Brand executives are calling TikTok a “mafia” that demands total compliance in exchange for platform support, according to comments made at the Glossy E-Commerce Summit in Miami.

Anonymous brand leaders described TikTok as “by nature a data platform, and they are out to sell for themselves.” One executive said TikTok’s support is “very, very much predicated on your willingness and ability to conform to the TikTok way of life.”

The platform demands “product drops specifically for them, exclusives,” according to the executives. This strict compliance requirement is creating tension for brands trying to maintain independence across channels.

Platform Control Creates Business Challenges

Success on TikTok Shop requires “playing the TikTok game,” including seeding thousands of free samples to creators monthly and participating in platform-controlled promotional deals. TikTok’s rating system ranks creators and storefronts based on compliance.

One executive explained the consequences of non-compliance: “If we miss shipments, that score gets docked, and we get deprioritized in the algorithm. We get deprioritized in promotional selection.”

The platform’s control is affecting brand expansion strategies. One executive noted that while their TikTok relationship provides strong support, “it has been hindering us as we expand to DTC.”

Massive Growth Despite Control Issues

TikTok Shop’s dominance continues growing despite brand complaints. The platform generated $26 billion in global GMV in the first half of 2025, building on $33 billion for all of 2024.

Beauty products lead TikTok Shop GMV with $2.49 billion, accounting for 22.5% of total platform revenue. The average transaction time from scroll to checkout is under four minutes, compared to 8-12 minutes on traditional e-commerce platforms.

In 2024, 43.8% of TikTok users in the United States made a purchase from TikTok Shop, up from 34.4% in 2023. The platform now has 687,000 active creators in North America generating sales, an 81% increase from 380,000 the previous year.

Increasing Platform Requirements

TikTok Shop is becoming stricter on product claims, content compliance, and seller verification. Categories that were loosely regulated, including supplements and beauty claims, now face increased enforcement through automated detection systems.

The platform recently tightened creator requirements, mandating accounts have at least 1,000 followers to host livestreams and requiring creators to be 18 or older to receive virtual gifts.

U.S. brands spent $1.25 billion on TikTok influencer marketing in 2024, with spending estimated to reach $2.35 billion in 2025, up 87.4% from the previous year.