With widespread user confusion over the implications of
TikTok’s new ownership in the U.S., the video-sharing platform is attempting to bring in more retailers with a new Shop program designed to help brands sell more products on the app.
Originally launched late last month, TikTok’s U.S.-based “Smart Promotion Program” is designed to amplify vendors’ products on Shop, while offering
rewards and lower fees.
According to a recent announcement on TikTok’s U.S. Academy Shop hub, the Smart Promotion Program delivers 5x ROI and drives GMV growth to
eligible sellers. Through the end of the month, the program guarantees earnings of at least $5 in GMV per every dollar vendors spend, as well as enhanced product exposure via pop-up messages and
surprise placements on product pages.
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However, to partake in the program, sellers must meet a number of requirements, including maintaining a Shop Performance Score (SPS) of at
least 3.5 out of 5, which is based on a mixture of product satisfaction, customer service, and the fulfillment of at least 30 orders within the past 90 days.
In addition, enrolled merchants must contribute marketing funds, which are then allocated across promotional activities such as product
coupons and new customer discounts.
“The platform manages all investment in this
Program, aiming to maximize sellers' ROI with the support of advanced algorithms,” reads TikTok’s announcement.
The Smart Promotion Program launched as TikTok introduced a swath of new AI-powered shopping tools designed to better
showcase products and convert consumers, including an “AI Fashion Video Maker,” AI video script dubbing, full product listing generation, the integration of the company’s GMV Max Ads
into the TikTok Shop campaign registration process, and a new customer relationship management (CRM) tool.
Competing now with ecommerce giants like eBay and Amazon, TikTok Shop’s total U.S. e-commerce spend between Thanksgiving and Cyber Monday in 2025 amounted to over $44 billion,
according to a direct online commerce transactions analysis by Adobe, which also noted that social media-driven Cyber Monday purchases increased 56% year-over-year.