As TikTok prepares for a potential sale of its U.S. operations amid ongoing regulatory pressures, the company is intensifying efforts to bolster its e-commerce arm, TikTok Shop. Recent changes to its advertising policies, however, are sparking backlash from merchants who rely on the platform to drive sales. According to a report from The Information, TikTok has begun mandating the use of a new AI-powered ad tool called GMV Max, which automates targeting, bidding, and ad placements but restricts links to external websites, forcing traffic solely to TikTok Shop listings.

This shift, effective for many sellers starting in September 2025, aims to keep users within the app’s ecosystem, potentially increasing in-app purchases and boosting TikTok’s revenue from commissions. Merchants, particularly those with established online stores outside the platform, argue that it limits their flexibility and could reduce overall sales by preventing direct redirects to their own sites.

The Push Toward In-App Exclusivity and Merchant Frustrations

Interviews with industry insiders reveal growing discontent. One e-commerce executive, speaking anonymously to Business Insider, described the mandate as a “heavy-handed” move that erodes control over marketing strategies. Brands accustomed to using TikTok ads to funnel traffic to platforms like Shopify now face higher costs without the benefit of diversified sales channels. Data from Retail TouchPoints shows TikTok Shop has grown rapidly, with U.S. sales surpassing $10 billion in its second year, but this growth may come at the expense of smaller merchants who can’t afford the escalated ad spends.

Posts on X, formerly Twitter, echo these sentiments, with sellers lamenting sudden policy shifts that prioritize TikTok’s bottom line over user experience. For instance, discussions highlight how the pay-to-play model, detailed in a Cahoot analysis, is moving away from organic viral reach, compelling brands to invest heavily in paid promotions to maintain visibility.

Broader Implications for E-Commerce Strategies in 2025

The policy arrives at a precarious time, as TikTok navigates uncertainty around a possible U.S. ban or divestiture, as outlined in an eMarketer report. Marketers are reallocating budgets, with some shifting to rivals like Instagram Reels or YouTube Shorts, according to insights from Digiday. Yet, TikTok’s dominance in product discovery—where 60% of users find new items via short-form videos, per WebProNews—makes it hard to abandon.

Fee structures are also evolving, with Printify noting commission rates climbing to 8% for some categories in 2025, further squeezing margins. Affiliates face stricter rules, as updated in BigSeller, disqualifying those who don’t meet performance thresholds.

Strategic Responses and Future Outlook

In response, some merchants are partnering with certified “Shop Ads” experts, a program TikTok introduced to optimize campaigns, as reported by Influencer Marketing Hub. Larger brands like Nike and E.l.f. Beauty, featured in a Retail Dive piece, are adapting by leaning into live shopping and influencer collaborations to offset restrictions.

Reddit threads on r/TikTokshop, dating back to early 2025, discuss persistent shutdown risks, underscoring the platform’s volatility. As one X post from a marketing consultant noted, the focus is shifting back to core advertising amid divestiture talks, potentially stabilizing operations but at the cost of merchant autonomy.

Navigating Risks in a Volatile Platform

Experts warn that alienating sellers could hinder TikTok Shop’s momentum, especially with competitors enhancing their own commerce tools. A Outfy guide emphasizes the need for adaptive strategies, like using advanced targeting to maximize ROI within the new constraints. For industry insiders, the key takeaway is clear: while TikTok’s innovations drive short-term gains, long-term success hinges on balancing platform control with merchant needs. As the 2025 holiday season approaches, the true impact of these policies will become evident, potentially reshaping social commerce dynamics for years to come.