Understanding TikTok Shop Suspensions and Reinstatement Process

Introduction

Many sellers are facing TikTok Shop suspensions, but understanding the process and requirements for reinstatement is crucial. Despite the challenges, suspended shops can get reinstated, and it’s important to be prepared for potential suspensions and continue selling on TikTok Shop.

TikTok Shop Bans and Preparing for Suspensions

• TikTok has recently been imposing shop bans, causing some businesses to have their shops deactivated or anticipate suspension.

• While there are challenges with the TikTok marketplace, it’s important to note that selling on TikTok shop can be lucrative, and many suspended shops get reinstated later.

• Previous bans have occurred due to a glitch causing mass suspensions, copycat violations, and now, a vague request for more information as the latest reason for suspension.

• It’s crucial to be prepared for potential shop suspensions and continue selling on TikTok shop despite the challenges.

Understanding TikTok Shop Suspensions

• When a seller receives a violation on TikTok Shop, they are informed via email about the suspension of their shop and the permanent closure of it.

• In order to appeal the enforcement action, the seller is required to provide a state business registration document and ID card, along with a handwritten note containing their shop name and the date.

• Additionally, the seller needs to submit at least two supporting documents such as warehouse documents displaying warehouse address, inventory invoices, and bank statements.

• The process of proving legitimacy as a seller on TikTok Shop is riddled with challenges due to the stringent requirements and procedures.

• Econ Bull discusses the implications of these suspensions and sheds light on why they are occurring in a video, providing valuable insights for affected sellers.

Understanding TikTok Shop Violation and Appeal Process

• If you’ve received a notice of violation from TikTok Shop, you may need to provide documentation such as payments, IRS documents, or recent utility bills showing your registered business name and address for appeal.

• The appeal process can be initiated by raising a ticket through the shop health if you believe the violation is in error or based on inaccurate information. TikTok will investigate your case and make changes if applicable.

• The violation notice may not specify the exact activity that led to the violation, but it simply states that there was activity from your shop that violated TikTok shop policies.

• Upon visiting your TikTok shop seller center, if you encounter the message ‘account deactivated,’ you’ll need to review your account violations on your shop health to understand the specific violation.

• Once in the shop health section, you’ll find the violation reason, which is likely to be the same as the initial notice - activity from your shop violating TikTok shop policies. This could result in permanent closure of your shop and suspension of shop settlements.

Understanding TikTok Shop Settlement Suspension

• TikTok shop settlement suspension can be unsettling, but it’s important to understand the process and options available.

• Once your shop settlement is suspended, you won’t receive funds even for delivered orders until the issue is resolved. This can take up to 90 days, unless you were involved in selling counterfeit products, in which case you may not receive any payment.

• TikTok doesn’t provide much information about the 90-day settlement period, but it’s essential to know that your money is not lost, just delayed.

• You have the option to view violation details and appeal the suspension. This involves providing your state business registration document and an ID card as requested.

• It’s crucial to stay informed about the suspension process and take necessary steps to resolve it, ensuring that you receive your funds after the 90-day period.

TikTok Shop Identity Theft Issues

• TikTok shop’s registration process is quick and easy, with approval taking only 15 minutes to an hour. Individuals can sign up with their social security number, while companies can use an EIN number. However, even as a company, the representative’s social security number is also required.

• Adding a bank account is not necessary initially, as merchants can start receiving orders and add the bank account later. However, tax information must be provided, which is minimal.

• The simplified registration process aims to attract a large number of merchants. However, this approach has led to numerous cases of identity theft, as it is easy for people to open stores using others’ information found online. This has resulted in the sale of counterfeit products and other fraudulent activities on TikTok shop.

Challenges of Selling on TikTok Shop

• Selling on TikTok shop from a country not allowed to sell in the United States is a challenge due to account restrictions.

• In contrast, Amazon has a more rigorous process for sellers, requiring extensive information and verification before listing products.

• When the speaker started selling on Amazon 15 years ago, the process took three months, but now it typically takes one to three weeks.

• TikTok shop also needs seller information for verification purposes, although the approach is criticized for being disruptive and lacking notification protocols.

TikTok Violation Appeals and Document Submission

• When your payments are stopped due to a violation on TikTok, you are required to submit certain documents to appeal the violation.

• However, you can only appeal a violation twice, which can be a challenge if the documents are not accepted the first time.

• It seems that TikTok may have inconsistent review processes, where the first appeal is often rejected while the second appeal with the same documents is accepted.

• Another issue arises for individual sellers who receive the same violation notice as businesses, despite not having the necessary business registration documents.

• For example, individual sellers may struggle to provide a state business registration document, which is required in the appeal process.

• This creates a challenge for individual sellers who are unable to meet the specific document requirements for a business registration.

Understanding Shop Bans and Business Registrations

• When dealing with business registration requirements on e-commerce platforms, individual sellers often face challenges when they don’t have the necessary business registration.

• In such cases, instead of simply stating that they are an individual and don’t have a business registration, it’s advisable to open a ticket and engage in a conversation with the support team.

• Individual sellers should explain their situation and why the business registration request does not apply to them, expressing their hope for understanding and guidance from the support team.

• It’s important to persist in the conversation, keeping the ticket open and reiterating that the request does not apply, until a valid response is received.

• However, it’s crucial to be honest and forthcoming about any potential legal violations, as remaining silent is not a viable strategy if unlawful activities have been undertaken.

TikTok Shop and Third Party Logistics

• When using TikTok Shop, it is permissible to utilize third-party logistics to fulfill orders. Many companies, especially larger ones, do not ship directly from their offices, but rather utilize warehouses and third-party logistics providers to store and ship their products to customers within the United States.

• It is important to note that while using third-party logistics is allowed, the warehouses must be located within the United States if selling to customers in the country. Attempting to deceive the system by drop shipping from China or using shipping tracking methods to mask the origin is not permitted. However, having multiple warehouses within the United States is acceptable.

• It’s crucial to be mindful that if the system detects a discrepancy between the seller’s location and the warehouse’s location, it may raise a flag, potentially leading to further verification to ensure the legitimacy of the seller. Therefore, it’s essential to comply with the location requirements to avoid any issues.

• In some cases, even individuals who have recently set up their TikTok Shop have experienced their accounts being flagged for suspicious activity, despite not having added any products or apps. When appealing such violations, it is imperative to ensure that all submitted documents are complete to support the legitimacy of the account and the business.

Tips for Valid Document Submission

• When submitting documents, it’s crucial to ensure their authenticity. Avoid using Photoshop to manipulate images, and instead take photos with your phone and convert them to JPEG before sending.

• For specific documents, it’s important to print them out and take a real photo to demonstrate their authenticity. Manipulating PDF documents by hiding information can result in the document being deemed invalid by the recipient.

• TikTok’s policies and regulations are frequently changing, making each case unique. To address this, a new channel has been created on the Ecomboot Discord server for TikTok shop, allowing users to share their situations, solutions, and exchange help.

• The Discord server link can be found in the video description. Viewers are encouraged to like the video if they found it valuable, subscribe for more ecommerce content, and watch related videos about TikTok shop.

• Thank you for watching and for your support.

Conclusion

Navigating TikTok Shop suspensions can be challenging, but with a clear understanding of the process and requirements, sellers can take necessary steps to resolve suspensions and continue selling on the platform.

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