Since its formal launch last year on 30 June 2025, TikTok Shop has exploded in growth in Japan, offering a lucrative new frontier for ecommerce sellers.  However, alongside this opportunity comes a tightening of the regulatory environment that potential sellers will need to bear in mind. 

We’ll explore TikTok Shop’s rise in Japan, and how you can take advantage of new consumer trends and unlock the Japanese market for your business    

The explosive growth of TikTok Shop in Japan

Data compiled by analytics firms FastMoss and Tuke Marketing highlight the immediate impact of TikTok Shop’s entry into Japan. 

In its first month alone, the platform generated approximately $15 million USD in sales, and by the third quarter of 2025, gross merchandise value (GMV) reportedly approached JPY 3 billion yen (roughly $20 million USD), with daily sales peaking at JPY 100 million in late September.

For international sellers, the appeal is clear.

Japan represents a high-value market with high consumer spending power (a per capita GDP over $30,000) yet relatively low saturation for social commerce compared to markets like China or the US. The current rate of livestream shopping remains around 5%, suggesting immense room for growth.

Analytics also suggests that Japanese consumers are responding well to ‘scenario-based’ content, including videos designed to demonstrate a product’s real-world usage and utility – a perfect format for TikTok Shop. 

New Domestic Administrator regulations 

Sellers seeking to make the most of Japan’s booming consumer market should be aware of new product safety rules that were recently implemented.  

Starting from 25 December 2025, all overseas sellers importing regulated goods (‘specified goods’) under the Consumer Product Safety Act (and other relevant acts) into Japan are required to appoint a Domestic Administrator. 

Sellers must be aware of the specific safety marks required for their goods:

• PSE Mark (Electrical Appliances & Materials Safety Act): This applies to 457 product categories and is strictly divided by risk level.
  
  • Diamond PSE (Category A – 116 items): High-risk items requiring third-party testing. Common TikTok Shop examples include AC adapters (chargers), power banks, and DC power supply units.
  • Circle PSE (Category B – 341 items): Lower-risk items requiring self-declaration. Common viral products include LED ring lights, hair dryers, curling irons, and air purifiers.

• PSC Mark (Consumer Product Safety Act): This applies to products deemed to have a higher risk of causing injury.  

• • Current Categories: Includes 10 specific items such as laser pointers, motorcycle helmets, and pressure cookers.
  • New 2025 Addition: Crucially, the new amendment adds infant toys (for children under 36 months) to this list, including items such as plush toys, baby rattles and educational games. 

If you’re looking to expand your business in Japan, make sure you are aware of your obligations before starting your sales! 

Don’t forget tax! 

Beyond safety regulations, financial compliance remains a key pillar for establishing your business.  

The Japanese Consumption Tax (JCT) system, similar to the VAT regimes in the European Union and UK, requires overseas sellers to register if they meet specific sales thresholds. 

Additionally, with the introduction of the Qualified Invoice System, registered sellers must issue compliant invoices if they want to remain competitive by allowing their business customers to claim tax credits.

Ongoing compliance with TBA Global

For ecommerce sellers eyeing the Japanese market, the double pressure of the new product safety regulations and tax obligations can be daunting.

TBA Global offers a comprehensive set of compliance solutions designed to bridge the gap between international sellers, and Japanese compliance requirements.  

We have extensive experience with the JCT system and can help register your business and file the necessary tax returns.  Additionally, we have also recently launched our Japanese Domestic Administrator service to ensure that you can comply with the latest product safety regulations.   

Unlock market access in Japan today with TBA Global.