TikTok Shop’s Logistics Shake-Up Sparks Seller Backlash

TikTok Shop is facing mounting criticism from small and mid-sized merchants after announcing a sweeping change to its U.S. shipping policy. Starting February 25, TikTok will begin phasing out independent seller fulfillment, requiring brands to use its in-house logistics network or approved third-party integrations. By March 31, the transition is expected to be complete—and for many sellers, that’s a dealbreaker.

Brands must now rely on TikTok’s logistics services like Fulfilled by TikTok (FBT), where inventory is stored, packed, and shipped from TikTok warehouses. The platform claims this will improve order reliability and create a consistent customer experience. But several sellers argue the change introduces higher costs, operational headaches, and logistical risks—especially for smaller brands operating lean.

Why Sellers Are Scaling Back

For Nadya Okamoto, founder of period-care brand August and new sleepwear line Matching, the change means walking away from TikTok Shop entirely. Matching, still in its early stages, doesn’t carry the inventory volume or margins to make TikTok’s fulfillment services viable.

“We would rather just have people go to our site than TikTok Shop,” said Okamoto, citing the added cost and complexity.

She’s not alone. According to multiple agencies advising hundreds of brands, sellers are pulling back—reducing SKUs, halting promotions, or exiting TikTok Shop altogether. The move reflects deeper concerns that TikTok’s fulfillment system still lacks the polish and reliability of Amazon’s or even self-managed alternatives.

• Shipping delays and fulfillment errors under FBT
• Inability to break down case packs into individual units
• Customer cancellations due to missed delivery windows
• Added warehouse costs eating into already thin margins

Brands need to weigh the marketing upside of going viral against the platform’s fulfillment downsides—especially when that fulfillment is mandatory.

Big Brands Balking Too

The policy change isn’t just squeezing small sellers. Large brands, like those approached through TikTok’s “Project Horizon” program, are also rethinking their participation. Many of these enterprise players operate wholesale or use Amazon’s MCF and lack DTC logistics capabilities. They now face a forced operational shift—or a missed opportunity.

“It will be a roadblock,” said one agency executive tasked with onboarding multimillion-dollar brands. These companies want flexibility in how they move goods, not mandates.

Fulfillment Fatigue and Platform Risk

FBT’s growing pains are hard to ignore. Sellers report system glitches, delayed shipping during peak seasons, and a lack of responsive support. Worse, once inventory is locked into FBT, it can’t be used for other channels. That’s a huge problem in a fast-moving platform like TikTok, where virality can lead to unpredictable demand spikes.

“During viral peaks, having Seller Shipping as a fallback has been crucial,” said Jimmy Hadden, formerly of Wyze. Without it, brands risk being out of stock just when demand is at its highest.

The Bottom Line for Merchants

For many TikTok sellers, the new shipping rules create a domino effect: higher fulfillment fees, fewer discount opportunities, and limited flexibility across sales channels. Okamoto, for instance, is now reassessing which products from August will remain on TikTok Shop. Brands like Grande Cosmetics and FlutterHabit are planning to limit listings and cut back on platform-exclusive promotions.

Unless TikTok Shop can shore up its logistics capabilities and offer more flexibility, it may lose the very sellers that fueled its explosive growth. The change marks a turning point in the platform’s evolution—and not all brands are sticking around to see how it plays out.

Conclusion

TikTok Shop’s fulfillment overhaul is a gamble. While it aims to streamline the buyer experience and attract larger brands, it risks alienating the scrappy, agile sellers who helped make the platform what it is today. For now, many are choosing to scale back or walk away, wary of higher costs and untested systems.

As the March 31 deadline looms, sellers must quickly decide whether TikTok’s new logistics framework fits their business—or whether it’s time to shift focus back to owned channels and platforms that offer more control.