Imagine ordering international products with the same convenience as takeout food—pre-stocked inventory ready for immediate local delivery. TikTok Shop is turning this vision into reality across Europe with its newly launched "Local Hosting" service, a game-changing logistics solution for cross-border sellers.
The 'Local Hosting' Advantage: A Logistics Breakthrough
TikTok Shop's innovative program provides Asian merchants with localized European fulfillment by operating warehouses in Germany, France, Italy, and Spain. Sellers simply ship products in advance to these facilities, while TikTok Shop handles all storage, order fulfillment, and returns—effectively serving as a dedicated logistics partner that allows merchants to focus on product development and marketing.
Three Key Benefits for Merchants
- Faster Delivery, Better Customer Experience: By shipping directly from European warehouses, the service dramatically reduces transit times that traditionally plague cross-border e-commerce, decreasing return rates while improving satisfaction.
- Reduced Operational Costs: The program eliminates the need for merchants to manage overseas warehousing, logistics, and customer service—significantly lowering overhead while increasing profit margins.
- Integrated Marketing Support: TikTok Shop connects participating merchants with European content creators and marketing agencies, even facilitating local sample shipments for influencer campaigns—creating a seamless logistics-to-promotion pipeline.
Contrasting U.S. Market Strategy
While Europe sees this merchant-friendly approach, TikTok Shop is implementing stricter logistics controls in the United States. Beginning February 2026, the platform will eliminate seller self-fulfillment entirely, requiring all merchants—both domestic and international—to use TikTok's official shipping labels and designated logistics partners through either FBT (Fulfilled by TikTok) or upgraded TikTok Shipping programs.
This U.S. policy shift aims to improve delivery reliability, reduce returns, and strengthen logistics data oversight—particularly regarding postage anomalies. American sellers must now evaluate new cost structures, complete ERP system integrations, and consider FBT warehouse participation for potential traffic advantages.
European Expansion Accelerates
As one of the world's fastest-growing e-commerce platforms, TikTok Shop continues its aggressive European rollout. After establishing operations in the UK, Germany, France, Italy, Spain, and Ireland, the company plans imminent entries into Poland, the Netherlands, Belgium, and Sweden—signaling intensified competition in the regional e-commerce landscape.
Southeast Asian Market Gains Momentum
TikTok Shop's Southeast Asian growth reveals equally impressive traction. Industry data shows J&T Express delivered 26.5 million daily packages in Q4 2025—a 73.6% year-over-year increase primarily driven by TikTok Shop orders. Current estimates suggest J&T's volume now exceeds Shopee's SPX Express by approximately 18%. While TikTok Shop's Gross Merchandise Value still trails Shopee, analysts project parity in package volume by 2026, confirming its emergence as a major regional force.
New 'U.S.-to-Mexico' Cross-Border Initiative
Beyond Europe and Southeast Asia, TikTok Shop advances its American strategy with an upcoming "U.S.-to-Mexico" program launching this April. The initiative simplifies cross-border fulfillment by allowing direct shipments from U.S. warehouses to Mexican consumers, with eligible merchants gaining access to specialized storefronts.
Merchant Participation Requirements
To qualify for the European Local Hosting program, sellers must meet three core criteria:
- Maintain inventory within Europe
- Capable of shipping to designated warehouses in Spain, Germany, or Italy
- Possess valid VAT registration for each warehouse country
Approved merchants receive comprehensive support including product listing assistance, promotional resources, and fulfillment services—with select products qualifying for up to 50% direct discounts and enhanced affiliate commission rates.
The Future of Cross-Border E-Commerce
TikTok Shop's rapid evolution continues reshaping global e-commerce through localized logistics solutions and integrated marketing ecosystems. As the platform expands its warehouse network and refines regional strategies, its influence on international trade patterns appears poised for significant growth—presenting both opportunities and challenges for merchants navigating this dynamic new marketplace.