Recently, the extension of TikTok’s ban, discussions, and regulatory scrutiny have garnered significant attention from everyone involved.

TikTok has become a key player in the US-China dual data trade. The US has repeatedly pressured TikTok over data security issues, requiring stricter regulations to ensure the platform can continue operating in the US market.

Despite TikTok’s numerous statements regarding data storage in the US, there are still concerns about data security. However, the scrutiny of TikTok by the US government has only increased, not decreased.

TikTok’s Regulatory Timeline

The ban on TikTok has led to increased scrutiny from US regulatory agencies, which can effectively demonstrate the US’s strong stance against TikTok. Below is a clear visual representation of incident developments:

Regarding TikTok’s business, both the US and China are currently in ongoing discussions. According to data from the regulatory agencies, no agreements have been reached, and both sides still have significant differences on key issues.

The US government is actively seeking to regulate TikTok, aiming to ensure that the platform complies with US regulations. Many messages indicate that companies like TikTok are under increasing pressure to comply with US regulations.

The ongoing regulatory scrutiny remains a core economic tool for the US government, which continuously seeks to leverage regulatory measures to gain an advantage over TikTok, although there are still debates regarding the methods and data issues involved.

China clearly states that it will adhere to its legal regulations regarding TikTok and related issues.

Regulatory battles can ignite at any moment.

Why is TikTok under scrutiny?

In summary, the ongoing scrutiny of TikTok in the US is particularly evident, but the reality is that TikTok is facing increasing scrutiny from the US government. How has TikTok become such a focal point in the US’s regulatory landscape?

The original business model led by the US is “product creation—brand—distribution—end—consumer,” which is a chain where the distribution is the intermediary, and the end is the retail store. The actual cost of product creation is very low, as it has gone through multiple layers of supply chain, and the final price can vary significantly.

Among them, brands and distribution are the most profitable, as product creation and end sales require relatively high capital investment, while the US often relies on manufacturing bases in Southeast Asian countries, and then uses brand promotion and distribution to generate profits.

For example, if the production cost of an external accessory is only 50 yuan, after adding the brand, it can be flipped to 100 yuan, and through the distribution of the added value, it can change to 160 yuan. When sold in a physical store, the final price to consumers is already between 300-500 yuan.

From TikTok, the transition to “content + e-commerce” has become a strong trend, with e-commerce platforms continuously expanding their overseas markets, leveraging their unique advantages to shorten the original business path to “manufacturers—consumers,” often directly surpassing brands and end sales, allowing users to directly interact with manufacturers, significantly increasing sales volume.

TikTok holds a significant market share, making it a good opportunity for Chinese e-commerce companies and individuals to expand into overseas markets, effectively utilizing short video marketing and live streaming to realize cross-border sales.

Companies and individuals can leverage this wave to enhance China’s presence in global cross-border trade, and they must continuously adapt their strategies to navigate the changing market landscape.

How to leverage TikTok for cross-border marketing?

As the hottest platform for overseas traffic, TikTok offers several effective methods for cross-border marketing, primarily focusing on leveraging TikTok’s content characteristics and user base to promote products, maximizing product visibility and sales.

Directly completing transactions on TikTok

• TikTok account number

The account number is associated with the content creator’s account, allowing creators to connect with users through short videos/live streaming to promote products and realize sales conversion, generating revenue from the platform.

Advantages:

1. Low startup costs, no need for inventory, shipping, or post-sale management.
2. Multiple product categories can be tested quickly to find explosive products.

• TikTok shop

On TikTok Shop, registered independent sellers can directly showcase and sell their products, gaining visibility. Sellers can manage products, orders, inventory, and customer service through the shop, realizing a complete e-commerce functionality, with price differences for profit.

Advantages:

1. Custom pricing, high profit margins, long-term accumulation of brand assets.
2. Stable traffic flow, easy to generate volume.

Live streaming is also a crucial step in realizing cross-border sales, allowing real-time interaction between sellers and users, significantly boosting product sales volume.

Conducting marketing on TikTok

• Independent store

Independent stores can access TikTok’s advertising tools, leveraging TikTok’s short video format to attract consumers, allowing users to click links to complete transactions.

Advantages: TikTok has a youthful traffic pool, helping independent stores achieve low-cost marketing, significantly expanding user reach and continuously accumulating brand loyalty.

Effective tools to support cross-border sales

Whether starting a TikTok shop or creating an independent store, capturing TikTok’s traffic is a significant success factor. However, TikTok’s volatility can lead to many users feeling overwhelmed.

Utilizing effective tools can streamline your cross-border e-commerce path, such as using DuoPlus cloud mobile, which supports managing multiple social media accounts simultaneously.

Not only can you increase the operational efficiency of TikTok accounts, but you can also engage in global social media marketing, cross-border shops, and overseas customer acquisition, significantly aiding your global cross-border e-commerce efforts and reducing market volatility risks.

Conclusion

TikTok is a crucial component of cross-border e-commerce, facing uncertainty in the US market. TikTok sellers can leverage multiple platforms for sales channels or gradually transition to new markets (such as TikTok’s new initiatives in Mexico and Germany), helping TikTok sellers to establish their presence in other media while exploring new traffic channels.

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