Are you struggling with low conversion rates on TikTok Shop? Still relying on a scattershot product listing strategy hoping to get lucky? The platform's recent policy changes indicate a decisive shift toward specialized operations, marking the end of the era of indiscriminate product dumping.
TikTok Shop's Policy Shift: Primary Category Control Takes Effect
TikTok Shop has implemented a significant new regulation regarding cross-border primary category control. Effective February 1, 2024, the platform now encourages specialized operations by requiring merchants to reduce their primary category to just one, with products outside this category facing rejection during listing reviews.
This means the previous freedom to select multiple categories or even sell products completely unrelated to chosen categories has ended. Each merchant account can now only select one primary category, which applies across all country sites, preventing the listing of non-primary category products.
Specialized Operations: TikTok Shop's Strategic Evolution
This policy adjustment reflects TikTok Shop's natural evolution as the platform matures. To help merchants establish sustainable business models, TikTok Shop now advocates for specialized operations focused on vertical categories, aiming to provide consumers with high-quality products and services while enhancing the shopping experience.
Previously, TikTok Shop allowed sellers to choose three categories with minimal restrictions on actual products sold. This approach inadvertently encouraged the proliferation of indiscriminate product listing strategies. However, as the platform's user base expands and consumer demands diversify, this crude approach has become increasingly inadequate for meeting expectations of quality products and professional service.
The Decline of Spray-and-Pray: Rise of Specialized Operations
The new policy serves as a wake-up call for sellers dependent on mass product listing strategies. While product diversity itself isn't problematic, many cross-border sellers have taken this approach to extremes, flooding the market with products while neglecting subsequent operations and maintenance. This strategy often results in impressive initial numbers but few viable, competitive products that survive long-term.
The policy change signals TikTok Shop's commitment to specialization and refinement. The platform believes that "less but better, specialized and focused" operations will create more sustainable long-term business value. By limiting primary categories, TikTok Shop aims to guide sellers toward specialization, improving product quality and service standards to earn consumer trust and loyalty.
Adapting to the New Policy: Seller Strategies
For many sellers, the primary category control policy may actually present an opportunity. It forces businesses to carefully evaluate their strengths and market demands before committing to a promising category. The platform will provide support to help merchants focus on full-chain operations within their vertical category, improving professionalism and ultimately enhancing Net Revenue Retention (NRR) metrics.
Key adaptation strategies for sellers include:
- Reevaluating business positioning: Analyze strengths and resources to select a competitive vertical category
- Deepening product expertise: Focus on product development and optimization within the chosen category
- Enhancing services: Provide professional pre-sales consultation and after-sales service to build customer relationships
- Implementing specialized operations: Develop detailed operational plans covering content marketing, community interaction, and advertising
- Leveraging data analysis: Closely monitor store metrics and adjust strategies accordingly
Primary Category Control Policy: Key Details
To help sellers better understand and adapt to the new policy, here's a detailed breakdown of key points:
Policy Changes
Previous Policy: Sellers could select three categories with minimal restrictions on actual products sold, except for prohibited or restricted items requiring special approval.
Current Policy: After February 1, products outside the primary category face rejection during review. Merchants must confirm their primary category by February 7. Those failing to submit will have a category assigned based on November-December sales data.
Implementation Process
- Popup notifications will appear in store dashboards until February 7
- Clicking "Submit Application" opens a questionnaire
- The selected category affects all country sites
- Sellers must choose one primary category from the questionnaire options
- Automatic category assignment occurs if no selection is made by February 7
Category Selection Guidance
For sellers facing difficulties with narrowly defined categories, the questionnaire includes a special circumstances comment section where alternative arrangements can be requested.
With TikTok Shop's deadline approaching, merchants yet to select their primary category should carefully consider which sector to specialize in and how to align with the platform's move toward specialized operations. Only by embracing this transformation can sellers stand out in TikTok Shop's new era and achieve sustainable growth.