Short-form video platform TikTok has expanded the fulfilment operations of its social commerce wing, TikTok Shop. The social platform is reportedly recruiting logistics and management personnel at its Munich office, in order to launch its Fulfilled by TikTok (or FBT) program in Germany. The FBT programme provides services including warehousing, sorting, packaging and shipping to its merchants.
Before Germany, TikTok first launched its FBT services in the UK in August 2023, benchmarking against Amazon’s Fulfilled by Amazon services. In the United States, TikTok Shop works with fulfilment providers such as ShipBob to provide logistics services to their North American merchants. During the Black Friday sales period last year, TikTok updated its logistics policies in the US, such as prolonging fulfilment time and allowing longer renewal and returns periods.
However, with the “sale or ban” order in the US still unresolved, it is understandable that TikTok is expediting its European expansion. In December 2024, TikTok Shop launched its Spain site with 500 merchants, before also launching in Ireland. Social commerce revenue in Europe is projected to reach 48.3 billion USD by 2028, with Spain being the fastest-growing country.
With Temu launching “one-click” services for merchants to sell in EU 27 without national sites and Shein pledging 250 million EUR (260.46 million USD) investment in UK and EU while expanding its fulfilment services to Germany, the UK, France, Italy and Spain, Chinese e-commerce platforms are competing fiercely in Europe. Temu and Shein are also set to go head-to-head in the UK courts next year. JD.com is running first-party logistics in Europe with its Ochama brand. With scrutiny on data security on these Chinese platforms from both the US and Europe, TikTok might be facing more difficulties than competition or forming the habit for consumers to buy via social media platforms.
