TikTok's Fulfilment Power Grab

And What It Actually Means For You

No exceptions. No workarounds.

If you ship TikTok Shop orders via USPS, you create those labels inside TikTok Shipping. That's the new rule.

But here's where it gets interesting...

The "Official" Reason

TikTok says this is about "stopping counterfeit postage" and "ensuring compliance with U.S. federal law."

Sure….

The real story? TikTok wants control. Same playbook Amazon ran years ago. And honestly? I can't even blame them.

What Actually Changes

If you use USPS:

  • No more labels from Shopify

  • No more labels from ShipStation

  • No more labels from your own USPS account

  • No more labels from your 3PL's sweet enterprise deals

Everything goes through TikTok Shipping. Period.

If you use UPS, FedEx, or DHL: Carry on. Nothing changes. Yet.

The Math Nobody's Talking About

Here's where Amazon sellers need to pay attention.

For a lot of TikTok Shop sellers—especially those shipping small, light products—USPS is the only affordable option.

Let me show you what I mean:

Current setup (hypothetical small seller):

  • Average product weight: 8 oz

  • Current USPS First Class rate via 3PL: $3.80

  • Average orders per month: 500

  • Monthly shipping cost: $1,900

After January 2026 (TikTok Shipping rates):

  • TikTok Shipping USPS rate: $4.20-4.60 (estimated based on their rate cards)

  • Monthly shipping cost: $2,100-2,300

  • Extra cost per month: $200-400

That's $2,400-4,800 per year in additional shipping costs.

On thin margins? That's the difference between profitable and not.

But Here's the Thing Most People Are Missing

This isn't just about USPS.

This is step one.

Already happened (December 15, 2025): Cross-border sellers must now use FBT or TikTok Shipping exclusively. No more seller shipping. Done.

Coming soon (my prediction): US local sellers will get the same treatment. Maybe not 2026. Maybe 2027. But it's coming.

TikTok is building a logistics moat. Just like Amazon did.

The FBT Opportunity

Yes, There Is One

Before you panic, let's talk about Fulfilled by TikTok.

Current FBT pricing:

  • Single unit: Starting at $3.58 per item

  • Multi-unit orders: Starting at $2.86 per item

  • January 12, 2026: Multi-unit fees dropping another 24%

What's included:

  • Pick, pack, ship

  • Free 3-day delivery badge

  • VTR (Valid Tracking Rate) exemption

  • NBFR (Return Rate) exemption

  • 60 days free storage

The real benefit nobody talks about:

When you use FBT, logistics problems don't count against your seller score.

Late delivery? Not your fault. Package damaged? Not your fault. Customer says "never arrived"? Not. Your. Fault.

For Amazon sellers who've been suspended over shipping issues they couldn't control? This is huge.

Let's Do Some Napkin Math

Scenario: $25 product, 8 oz, $10 COGS

Self-fulfillment (current):

  • Revenue: $25

  • COGS: $10

  • TikTok fees (~9%): $2.25

  • Shipping (your 3PL): $3.80

  • Profit: $8.95

FBT (after January 2026 rates):

  • Revenue: $25

  • COGS: $10

  • TikTok fees (~9%): $2.25

  • FBT fulfillment: $3.58

  • Profit: $9.17

Wait, what?

FBT is actually cheaper than most 3PLs for single units. And you get the 3-day badge. And the score protection.

"But I lose control..."

Yep. Same thing Amazon sellers said about FBA in 2012.

How'd that work out?

The Real Question….

Here's what Amazon sellers tell me in private:

"I don't want to be dependent on another platform's fulfilment."

"What if TikTok raises fees?"

"I've seen this movie before."

Yeah. You've seen this movie. That's exactly why you should be paying attention.

The pattern:

  1. Platform offers fulfillment (cheaper than alternatives)

  2. Platform makes fulfillment "optional but recommended"

  3. Platform makes fulfillment basically required

  4. Platform raises fees

We're between steps 2 and 3 right now.

What To Actually Do….

For now, if you are using Amazon MCF, you should be fine…. for now.

From their help docs

If you're cross-border: You don't have a choice. Start with FBT or TikTok Shipping now. Like, this week.

If you're US local using USPS: You have until December 31, 2025 to figure this out. Test TikTok Shipping. Run the numbers on FBT. Compare to switching carriers entirely.

If you're US local using UPS/FedEx: You're fine for now. But start testing FBT anyway. Because when (not if) the mandate expands, you don't want to be scrambling.

Everyone: Stop treating TikTok Shop like a "side channel." The platforms that treat you like an afterthought are the ones that hurt you most.

Collections by TikTok (CBT): The Third Option

Quick note: If you have a warehouse in Greater LA, East Coast, or Texas, check out CBT.

  • TikTok arranges pickup

  • 30% additional shipping discounts

  • They cover peak season surcharges

Enrolment reopens January 5, 2026.

Bottom Line

TikTok is tightening control over fulfilment.

That's not good or bad—it's just reality.

The sellers who win will be the ones who:

  1. Actually read the policy updates

  2. Run the real numbers (not just assume it's worse)

  3. Make decisions based on math, not emotion

  4. Start testing before they're forced to

Six months from now, half the sellers complaining on Reddit will have adapted and moved on.

The other half will still be posting "TikTok is killing small sellers" threads.

Which half are you in?

Thanks for reading

- Paul 👊

PS: Big thanks to everyone that congratulated us on the acquisition.

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