TikTok’s Fulfillment Operations Expand to Germany

TikTok's fulfillment operations have made another significant step in its European expansion plan to launch its fulfillment service in Germany. TikTok, which reached a global GMV (Gross Merchandise Value) of more than €30 billion last year, is already recruiting for its Munich office to set up its Fulfilled by TikTok (FBT) division.

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TikTok’s Fulfillment Operations Expand to Germany — Source: Depositphotos

Global Success and European Entry

The expansion comes after TikTok Shop’s successful start three years ago in Asia and subsequent launches in the United Kingdom and United States.

Unfolding the current legal issues, the United States has become the biggest market for TikTok Shop.

The UK operation has seen impressive growth, having more than doubled its trading volume and attracting over 200,000 businesses to the platform.

TikTok Shop has leveraged this momentum to launch in Ireland and Spain by the end of 2024, making its debut on mainland Europe.

TikTok’s fulfillment operations: German Market Strategy

The launch of FBT in Germany is a key strategy to enhance TikTok’s logistics network in Europe. The service that provides storage, picking, packing, and shipping services for merchants was launched in the UK during summer 2023.

In the US market, TikTok has partnered with ShipBob to offer these fulfillment services. Analysts also expect significant participation by Zalando, Germany’s leading online fashion retailer, which has already proven itself on TikTok Shop UK.

TikTok included this partnership in a blog post, calling itself “the perfect partner for Zalando.”

Pan-European Expansion Plans

The company’s European plans go further than Germany, with new commerce-related jobs being advertised in Amsterdam, Paris, and Milan – cities in which TikTok Shop has not yet launched.

These recruitment efforts signal TikTok’s plans for a pan-European e-commerce network. German merchants can utilize FBT service to store inventory in local warehouses, streamlining logistics and reducing delivery times.

In this expansion, TikTok is continuing to prove that it has the intention to move from a social media platform to a significant actor in the European e-commerce market, following the integration of social commerce in other markets.

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