Since 2025, TikTok Shop has accelerated the deployment of the Latin American market and has now landed in Mexico and Brazil. TikTok has about 110 million users in Brazil and over 80 million in Mexico. The large user base combines the flow advantages of the short video platform with a content-driven electrical transformation.
Quick seller, SHEIN and Temu are already in Latin America. Fast-to-go to Mexico in 2014, SHEIN landed in 2019, and Temu quickly went red in 2023 and became Mexico’s popular shopping app. In the second quarter of 2024, Temu, SHEIN and fast-sellers in Mexico reached 8.3 million, 7.9 million and 5.8 million live users, respectively, approaching more beautiful people (10.2 million). Temu ‘ s advertising investment in Brazil increased 800 times over the same period, and SHEIN ‘ s digital advertising expenditure increased 140 per cent, demonstrating the determination of the Chinese platform to take over the market through high-intensity marketing. Mercosur (55 per cent market share) and Amazon (17.7 per cent) continue to dominate the Latin American electricity market but are under pressure. They respond by lowering the buyer’s free delivery threshold and the vendor’s logistics costs, while the Amazon has built 11 compliance centres, 40 warehouses and 28 distribution centres in Mexico to optimize the “second day” and “date day” services.
TikTok Shop introduced a 90-day commission-free policy in Mexico and Brazil, followed by a commission rate of only 6 per cent, which is lower than SHEIN (16 per cent) and comparable to fast-marketing (5-8 per cent), which significantly lowers the cost of presence of businesses and attracts more vendors. In Mexico, TikTok Shop ‘ s single-day GMV amounted to $800,000, demonstrating its potential to carry goods via short video and live. It also provides commodity discounts, resource slots and flow support, combining a full hosting model to lower the threshold for commercial operations. TikTok Shop uses its content ecology to attract consumers through individualized referrals, live broadcasts and short videos, especially among young users, with high conversion rates. The social utility model is more interactive and sticky than the traditional platform.
