Asianfin -- TikTok Shop is set to open its cross-border Purchase-on-Platform (POP) model in Mexico in mid-August, allowing Chinese merchants to enter Latin America’s second-largest e-commerce market using just a domestic business license.

The platform is rolling out a suite of incentives including a 90-day commission-free period and shipping subsidies, cutting early-stage store setup costs by 30%–40%. The move is aimed at helping sellers prepare for Mexico’s major shopping events in November—Buen Fin and Black Friday-Cyber Monday.

Mexico's e-commerce market is rapidly expanding, with sales projected to exceed $30 billion by 2025. TikTok has nearly 20 million monthly active users in the country. In the initial phase, five categories will be open to cross-border sellers, including fast-moving consumer goods, fashion, and home goods. The beauty and personal care category is already showing strong momentum, with over 120,000 related videos and more than 255,000 units sold between February and April.

TikTok Shop is also allocating $2 million to $3 million in consumer subsidies and leveraging its creator ecosystem to drive traffic, opening a high-growth channel for Chinese merchants seeking to tap into Latin America’s booming digital economy.