Premia TNC Singapore Team
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Adapting to TikTok’s New Global E-Commerce Power Shift
The global e-commerce landscape is rapidly evolving, with social commerce projected to reach USD 1.2 trillion by 2025 and TikTok Shop emerging as the fastest-growing content-driven platform. Reflecting this momentum, TikTok executed a significant global e-commerce restructuring in April 2025, consolidating operational authority for strategic markets. This includes the US, Mexico, and Brazil, under its headquarters in China and Singapore. This structural realignment marks a clear transition away from a primarily US-centric approach toward an Asia-focused operational model led notably by Singapore.
Aligned with this shift, TikTok accelerated its Latin American expansion by launching official trading in Mexico on February 13, 2025, opening seller registration in Brazil in late April, and rolling out TikTok Shop to users around May 8. These moves represent more than regional growth, as they signal TikTok’s intention to redefine its global commerce hierarchy
3 Clear Signals Behind TikTok Shop’s Recent Changes
1. Operational Power Has Shifted to Asia
According to an internal memo released in April 2025, TikTok Shop’s Governance & Experience organization was reorganized, with e-commerce operations in the US, Mexico, and Brazil being transferred collectively to leaders based in China and Singapore.
In fact, within the US, more than 100 people were restructured, PIPs (Performance Improvement Plans) were applied to underperformers, and leadership was replaced, reducing the strategic authority of the existing US base significantly.
The move is seen as a response to regulatory uncertainty in the US (e.g., divestment orders, information security issues) and deteriorating profitability in the US market.
On the other hand, TikTok aims to secure stability and scalability for platform operations through an Asian hub (Singapore), which boasts high cost efficiency and growth potential. The location of an e-commerce platform’s “operating headquarters” directly impacts advertising policies, API provision terms, and seller support methods.
2. Global Expansion Now Revolves Around Emerging Markets
TikTok is actively targeting the Latin American market starting in 2025.
- TikTok Shop Mexico: Trading begins February 13, 2025.
- TikTok Shop Brazil: Seller registration begins in late April 2025, with user features available on May 8.
These two countries have a combined population of over 360 million and a high proportion of young mobile users, creating significant potential for social commerce growth. This demonstrates the strategy of expanding a proven content-based sales model in Southeast Asia to emerging markets.
There is a high possibility of further expansion into India, Africa, the Middle East, etc., in the future, and global sellers should recognize this as a leading signal of entry into new markets.
3. E-Commerce Companies Must Adapt to a Centralized Platform Strategy
ikTok’s latest reorganization isn’t just about a reorganization; it’s about a complete shift in the core of the platform’s structure.
- Possibility of changes to seller registration criteria.
- Regional differentiation of advertising campaign configuration conditions.
- Changes in operating policies, including settlement cycles, exchange rates, and penalty policies.
All of these factors will change depending on the platform’s operational base and control structure, and this TikTok Shop reorganization could pose real cost and risk factors for global sellers and brands.
Therefore, companies with multi-channel and multi-country response systems are more advantageous in managing risks and seizing opportunities than companies that maintain a single-country selling structure.
Adapting Strategies to a New Era of Platform Power
TikTok’s reorganization isn’t simply an internal adjustment; it represents a structural shift in power within the global commerce ecosystem.
This reminds us that “where to sell” and “what structure to understand and approach” are becoming increasingly important when developing a global e-commerce strategy.
3 Critical Adaptation Requirements
Reorganizing Multi-Platform Strategies
- Actively responding to policy changes on major channels such as Shopee, Amazon, and YouTube Shopping, in addition to TikTok.
Establishing an Entry Strategy Targeting Emerging Markets
- Content marketing and logistics testing for early entry into Latin American markets, including Brazil and Mexico.
Establishing a Risk Management Framework
- Securing a contract structure and automated system to prepare for changes in payment policies, APIs, and seller operation policies.
Premia TNC Singapore Team
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Premia TNC Singapore is a dynamic team of experts dedicated to supporting businesses and entrepreneurs as they establish, manage, and grow their presence in Singapore and across the region. Premia TNC Singapore specializes in providing tailored corporate services, from company incorporation and compliance to tax planning and accounting. With our extensive experience and deep understanding of the local regulatory environment, we are here to make business operations smoother and more efficient.
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