TikTok Shop-ocalypse hits food sellers as the platform cracks down on homemade goods like freeze-dried candy

• TikTok Shop is cracking down on merchants that sell homemade food items.
• The move is boxing out some of the app’s most successful small business owners.
• “For me, it means we’re going out of business,” one candy-maker told Insider.

TikTok added new language to its product policies for its recently launched e-commerce platform TikTok Shop earlier this month, excluding merchants who sell homemade food items such as candy.

According to the company’s September 13 policy post, “all homemade food products, including but not limited to freeze dried candies, chamoy gummies, crystal candies, or home-baked foods, and more,” are prohibited. According to an enforcement notification received by one seller on Thursday and viewed by Insider, the company has been removing products that violated the policy.

According to a TikTok spokesperson, the company’s policy is not changing, but rather more specific language prohibiting the sale of homemade food products is being added. It stated that clarifying language was added earlier this month.

The policy is already having an impact on small business owners who have come to rely on TikTok Shop to drive sales of products they make at home.

“A lot of small businesses, they went from hundreds of sales a day to zero sales overnight,” said Chrystian Linares, a TikTok Shop merchant based in Florida who sells freeze-dried Skittles on the app.

Linares, who previously worked as a truck driver between Orlando and Tallahassee, began selling candy on TikTok Shop about six weeks ago after discovering he could make money by dehydrating and reselling Skittles purchased from wholesale sites such as BJ’s.

Linares made over 1,400 sales on TikTok Shop in the last month, according to documentation obtained by Insider. He began receiving takedown notifications from TikTok in the last few days, stating that his shop had violated its policies.

Linares’ candy startup, Alinby, is likely doomed by the rule.

“For me, it means that we’re going out of business,” he explained. “I’m torn between cutting my losses and putting the money I’ve made so far into other ventures, or continuing to do what I’m doing but focusing more locally rather than online.” However, it will not be the same.”

On TikTok Shop, freeze-dried candies have grown into a massive category and a thriving business. TikTok videos with hashtags like #freezedried and #freezedriedtreats have been viewed over a billion times. Influencers frequently record videos of themselves chomping on freeze-dried foods in order to earn a commission on sales through the app’s affiliate program. According to sales tallies visible in the app, users have already purchased thousands of freeze-dried products through TikTok Shop.

Nathan Wilkerson, who sells freeze-dried candies under the brand Tip Top Treats, had all of his TikTok Shop items suspended in the last few days. He stated that he intends to appeal the decision.

‘TikTok Shop has the ability to both give and take.’

This isn’t the first time TikTok Shop has slammed Wilkerson’s store. The company reduced his daily order allowance after buyers posted negative reviews about freeze-dried Jolly Ranchers and Nerds products he sold that arrived crushed due to a shipping issue.

Wilkerson removed the items from his storefront, but the sting of the negative feedback lingered.

“TikTok Shop can truly give and truly take,” Wilkerson explained.

Nonetheless, the app has been life-changing for the 25-year-old entrepreneur.

“I’ve always wanted to start my own business,” Wilkerson, who lives in Portland, Oregon, said. “I thought I’d have to work on it for years.” But, man, my life has changed since discovering TikTok Shop.”

TikTok Shop first became available in the United States in November to a select group of users and merchants. It began rolling out the product to the rest of its US users last week. The company has attempted to increase activity on its e-commerce platform by providing sellers with shipping discounts and other incentives, as well as paying cash bonuses to influencers who join its affiliate program. E-commerce has been a huge source of revenue for its parent company, ByteDance, which runs a similar short-video app called Douyin in China.

On TikTok Shop, the company is attempting to sell a wide range of products, including pre-owned luxury goods such as handbags and collectibles such as sneakers. According to its policies, all “second-hand, used, and open-box products are prohibited on TikTok Shop” unless they are part of its “invite-only preowned luxury handbag and collectibles categories.”

Other prohibited foods besides homemade products include perishable items, repurposed retail candies, and baby formula.