Since its launch, TikTok Shop has positioned itself as a platform where reach is driven by content rather than keywords. However, according to figures from Marketplace Pulse, sales are more concentrated at the top compared to Amazon. The top 1% of sellers generate 60% of the total sales volume in the US. The top 0.1%, consisting of fewer than 90 sellers, account for over a quarter of sales. In contrast, the bottom half of sellers contribute approximately 0.1% of the sales volume.
The platform's labeling system reinforces this distribution. Sellers with the "Official Store" label sell 40 times more volume than those without a label, and "Gold Star" sellers sell nearly 18 times more. The outcome indicates that the algorithm steers demand towards established sellers. Marketplace Pulse concludes that the vision of a level playing field for reach has so far created a smaller winner's circle, not a broader one.
Has Faced Criticism Elsewhere
For the Swedish e-commerce market, the platform's development is relevant after TikTok Shop rolled out in March 2025 in Germany, France and Italy. Swedish brands have shown interest in the new format, including the makeup company IsaDora, which established a presence in September 2025 on the German market.
We see how beauty inspiration spreads in real time on TikTok and want to give consumers the opportunity to directly discover and shop their favorite IsaDora products, commented Hanna Sjöström, PR & Communications Manager at IsaDora, in connection with the launch.
However, presence on the platform has presented challenges for some e-commerce companies. In September 2025, it emerged that the British brand Hair Syrup chose to leave TikTok Shop due to problems with counterfeits. The company instead chose to enter into an exclusive partnership with Swedish Lyko for its expansion in Scandinavia. Hair Syrup's founder, Lucie Macleod, stated that the sale of counterfeit products via TikTok Shop had caused customer complaints and damaged the brand's reputation.