TikTok Shop Accelerates in Brazil: A New Era for E-commerce with Intense Competition

The TikTok Shop officially landed in Brazil, promising to revolutionize the e-commerce landscape.The shopping platform integrated with the video application already demonstrates significant growth, attracting sellers and consumers with its innovative model, but faces strong competition from established giants and new entrants.

Accelerated Arrival and Disruptive Potential

The expansion of TikTok Shop to Brazil occurred faster than expected by analysts, signaling the urgency of the company to conquer the largest e-commerce market in Latin America. Brazil is the third largest global market for TikTok in number of users, which gives the platform a significant advantage.

• Rapid Growth: In just three months after launching in May 2025, the monthly Gross Goods Volume (GMV) of the TikTok Shop in Brazil jumped from US$ 1 million to US$ 25.7 million, reaching US$ 46.1 million in August.
• Market Potential: It is estimated that if the TikTok Shop reaches a market share comparable to that of the US (about 0.8% of total e-commerce), this would represent a GMV of R$ 2 to R$ 3 billion, enough volume to impact existing players.

Business Model and Impact on Categories

Unlike traditional marketplaces, TikTok Shop bases its sales on content, driven by influencers and viral videos. This approach favors brands that adapt quickly to the short content format and to the creation of engagement.

The beauty, fashion and electronics categories, where the TikTok Shop already stands out globally, are the first to feel the impact in Brazil. Companies such as Natura, Renner and C&A are well positioned to capitalize on this change, while others may have a harder time adapting to the disruptive model.

Intense Competition in the Brazilian Market

The TikTok Shop enters an already dynamic and competitive market. Mercado Livre, the current leader of Brazilian e-commerce, faces a unique challenge, as many of its small and medium-sized sellers can be attracted by the TikTok model. The platform also competes with giants such as Amazon, Shein and Temu, which already have loyal user bases and aggressive strategies in the region.

• Direct Competitors: Shein and Temu, despite facing regulatory challenges in other markets, have a strong presence in Latin America and are looking to expand their operations.
• Local Giants: Mercado Livre and Shopee (which is already a leader in order volume in Brazil) represent significant barriers to the entry of the TikTok Shop.

Future Strategies and Challenges

The TikTok Shop strategy in Brazil can mirror that of Mexico, with an introductory period of zero fees for sellers, free shipping and focus on specific verticals.The possibility of sellers registering with personal ID, eliminating the need for formal company registration, reduces the barrier of entry.

However, the TikTok Shop also faces regulatory scrutiny in Brazil, with debates over the effects of social platforms on women and children, and the responsibility of social media companies for user content.

The integration of BNPL (Buy Now, Pay Later) functions into the PIX in September promises to boost e-commerce even further, intensifying competition for all players, including the TikTok Shop.