36Kr has learned that from August 2024 to July 2025, Douyin E-commerce’s gross merchandise value (GMV) grew 34% year-on-year. The main driver was shelf-based e-commerce, where GMV rose 49%, outpacing overall platform growth.
Earlier, the media outlet reported that Douyin’s GMV reached RMB 3.5 trillion (USD 490 billion) in 2024, about 30% higher than the year before. This suggests that even as China’s broader e-commerce market slowed, Douyin managed to sustain steady expansion.
Shelf-based e-commerce has grown rapidly in part due to subsidies. During this year’s 618 shopping festival, the category generated RMB 200 billion (USD 28 billion) in GMV, nearly half of total sales, per 36Kr. Douyin declined to comment on the figures.
The company has been laying the groundwork for this shift since mid-2022, when it introduced a dedicated mall tab and later a standalone app. At the time, president Wei Wenwen said Douyin would focus on search and mall functions, with the goal of having shelf-based e-commerce account for more than half of sales.
A source close to the company said Douyin had set a three-year plan for shelf-based e-commerce: 30% of GMV in the first year, 40% in the second, and 50% in the third. So far, the plan has held. Shelf e-commerce contributed 30% of GMV in 2023, 40% in 2024, and, based on results from this year’s 618 festival, appears to have reached 50% in 2025.
Douyin has also adjusted its broader strategy. It now emphasizes supporting merchants by lowering costs and improving profitability. “The platform can only grow if merchants grow,” the company said in a statement. By the end of 2024, reducing merchant operating costs had become its central goal for 2025.
This focus has driven structural changes. In March, 36Kr reported that Ocean Engine, Douyin’s advertising arm, was merged into Douyin E-commerce as a secondary division. Two separate algorithm teams, one for Ocean Engine and the other for e-commerce, were also combined.
As a result, Ocean Engine is no longer focused solely on ad revenues. It must now work alongside product and operations teams to improve GMV, merchant performance, and user experience. The challenge lies in balancing merchants’ advertising returns, user satisfaction, and platform efficiency.
By consolidating product and algorithm teams, Douyin can better align its two major traffic streams. For instance, user coupons once limited to paid ad placements can now also be distributed through organic channels, broadening their reach and extending subsidies to more merchants.
In January, Douyin rolled out nine new merchant support policies. A central priority was refining its algorithms, with more investment in technology to optimize traffic distribution, raise exposure for quality products and content, and lower return rates—all aimed at cutting merchant costs.
ByteDance later reassigned sales and industry operations teams specializing in performance ads to Douyin E-commerce, streamlining merchant engagement.
Subsidy policies have shifted as well, from consumers to merchants. By the end of August, Douyin reported disbursing more than RMB 19 billion (USD 2.7 billion) in subsidies to help merchants lower costs and improve margins. Competitors have also been offering subsidies, reduced commissions, and advertising rebates.
On September 21, at its annual creator conference, Douyin introduced new platform rules and enforcement standards. Over the past year, it reportedly removed more than 13 million pieces of noncompliant content and revoked 470,000 selling privileges. Influencers who engaged in traffic-grabbing stunts were also sanctioned, with some receiving permanent bans.
Despite the visibility of influencers with sizable followings, their contribution to sales is modest. Accounts with more than one million followers generate about 9% of GMV, while those with fewer than one million followers contribute around 21%.
At the same time, instant retail, dominated by food delivery platforms, is intensifying in China. A source told 36Kr that Douyin plans to limit its investment in this competition and instead focus on strengthening its core e-commerce services and improving user experience.
On September 16, the company launched its Mid-Autumn Festival and Singles’ Day promotions, marking its next major push for growth.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Li Xiaoxia for 36Kr.