TikTok Shop’s European expansion is accelerating after early lessons from the U.K. launch, with Morgan Stanley’s industry expert weighing in on how the platform now operates for brands, influencers, and consumers as social commerce gains traction across key markets. The U.K. rollout in 2021 effectively served as a testing ground for adapting the model outside Asia, though early challenges included the presence of low-quality overseas brands and weaker engagement with livestream shopping than seen in APAC. In contrast, the U.S. expansion in 2023 delivered stronger results, setting the stage for faster momentum across Europe’s largest markets.

Germany is viewed as one of the most attractive markets from a demand perspective, while France offers a deeper pool of influencer talent to support product promotion. Social discovery plays a central role, with consumers often encountering brands through content before moving to purchase. Beauty has emerged as a natural fit for TikTok Shop, benefiting from standardized products, strong visual appeal and lower return rates. The expert believes Beauty will remain the platform’s largest long-term category, while Apparel faces more complexity around sampling products to influencers and managing fit-related returns.

Logistics are evolving as TikTok Shop seeks greater control over fulfillment. The platform currently works with a mix of third-party logistics providers and established partners across Europe to build trust as volumes scale. However, in the U.S., TikTok Shop has now mandated sellers to use its own Fulfilled-by-TikTok service from late February or risk exclusion. The expert noted that while similar changes could emerge in Europe over time, TikTok Shop currently lacks the operational capacity to fully support European demand on its own. On the advertising front, brands are increasingly splitting budgets across multiple channels, with some spend moving toward TikTok Shop as companies emphasize product discovery rather than purely intent-driven traffic.