TikTok Shop Makes Major Changes to Advertising Rules – What Do You Need to Know?

TikTok is set to implement a major change in its advertising framework.

From 15 July 2025, the platform started requiring all sellers to adopt GMV Max as the only authorised promotional tool, marking a complete departure from its traditional Ads model.

This development signals a significant shift in TikTok’s e-commerce strategy, and sellers—particularly those looking to expand into new markets—will need to adjust swiftly.

As TikTok’s compliance partner supporting e-commerce businesses with VAT registration, EPR compliance and much more, we strongly encourage sellers to prepare for this change.

What is GMV Max?

GMV Max—Gross Merchandise Value Maximise—is TikTok’s new AI-powered advertising solution. Rather than relying on sellers to manually define audience targeting, placement, and scheduling, GMV Max automates these functions using real-time behavioural data and algorithmic optimisation.

The tool’s primary objective is to maximise the sales revenue generated from advertising spend, making it particularly useful for:

• New product testing
• Sales acceleration
• High-volume product campaigns

GMV Max automatically selects ad placements, identifies high-conversion audience segments, and adjusts delivery timing to suit the performance pattern of each listing.

All advertising campaigns must be linked to a TikTok Shop account, and sellers can monitor key metrics such as GMV, ROAS (Return on Ad Spend), and Conversion Rate via the backend dashboard.

Phased transition to GMV Max

TikTok has provided the following timeline for its rollout of GMX Max:

• 1 June: New TikTok Shop sellers were blocked from creating traditional ads.
• 25 June: Traditional Ads functionality was removed entirely.
• 15 July: All remaining sellers must switch to GMV Max, regardless of account age or sales history.

This move aligns with TikTok’s global strategy to streamline seller operations, improve advertising efficiency, and increase the platform’s overall e-commerce performance.

How will this impact sellers?

For businesses unfamiliar with advertising or limited in marketing resources, GMV Max offers clear advantages:

• Reduced manual workload: No need for extensive campaign configuration or ad expertise.
• Improved cost efficiency: AI-powered targeting helps optimise ROI.
• Scalability: Suitable for both product testing and aggressive sales pushes.

However, the tool also presents a few challenges:

• Limited control: Manual targeting and creative control are significantly reduced.
• Cold start issues: Older or dormant stores may face difficulties gaining initial traction if they lack existing performance data.
• Creative dependency: The AI algorithm relies heavily on high-quality visuals and copy—poor content may lead to underperformance.

Sellers must also consider that advert performance will depend heavily on the quality and compliance of product listings. Inaccurate descriptions or missing documentation can impact campaign effectiveness. 

It’s also important for sellers to ensure that they are compliant with all legal and tax obligations, such as registering for VAT and EPR. 

Preparing for the switch

To make the most of the switch to GMV Max, sellers are recommended to:

• Begin test campaigns immediately if you haven’t already. This allows TikTok’s algorithm to gather performance data ahead of the mandatory switch.
• Invest in high-quality content. Product photos, videos, and descriptions must be clear, compliant, and compelling.
• Verify all tax and regulatory credentials. Non-compliant listings can result in disapprovals, even with optimised ad performance.
• Monitor key metrics such as GMV and ROAS daily during your initial campaigns to make adjustments early.

Ongoing compliance with TBA Global

TikTok’s shift to GMV Max reflects the platform’s ongoing push towards data-led automation.  For sellers, this presents both a challenge and an opportunity. 

At TBA Global, we specialise in guiding businesses through the complexities of cross-border selling on platforms such as TikTok Shop. It’s now more important than ever to ensure that your store is compliant, your products are properly registered, and your back-end systems are streamlined for automation.

As always, TBA Global is here to ensure your business stays ahead of regulatory hurdles via our trusted compliance solutions across the EU, UK and beyond.