Amazon checkout on TikTok has been announced! Here's what we know about the new TikTok Amazon ads integration and how it impacts brands and creators.
Kristen Wiley
Aug 13, 2024
TikTok Marketing and Advertising
TikTok’s Amazon Integration Explained Why Are TikTok and Amazon Joining Forces? What Does the Amazon Integration Mean for TikTok Shop? How Are Creators Reacting to TikTok Amazon Ads? Takeaways and Insights for Brands TikTok just announced new “Amazon Ads on TikTok” with native checkout that won’t require users to leave the app and complete their purchases on Amazon. Here’s a quick summary of the integration from TikTok’s official announcement: “Users can now seamlessly discover and purchase their favorite products from Amazon directly within the TikTok app . . . This shopping experience is powered by Amazon through ads placed on TikTok and allows users to complete product purchases with Amazon in TikTok’s native environment.” Translation? TikTok is cutting out the middleman by letting users buy directly from Amazon without having to bounce between apps or checkouts. While details are limited at the moment, here’s what we know so far: Good question! Although the partnership makes perfect sense, it's also kind of unexpected. How so? For starters, TikTok Shop and Amazon influencer storefronts are in direct competition with each other. While TikTok has been struggling to grow its ecommerce features, Amazon hasn't really moved the needle with its native influencer community. So what gives? Here's our take on why TikTok Amazon ads have suddenly become a reality: Amazon Products Are Already Super Popular on TikTok
TikTok Amazon Ads: TLDR? 🧑🏼🏫
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TikTok’s Amazon Ad Integration Explained
How Do TikTok Amazon Ads Work?
Why Are Amazon and TikTok Joining Forces?
You don't have to look hard to find influencers promoting products on TikTok that point back to Amazon. Searches phrases and hashtags related to Amazon shopping are among the most popular on the platform with a collective billionsof views across millions of TikTok videos.
The popularity of "Amazon find" videos and #FoundItOnAmazon hauls speak for themselves. Creators are the best billboard for brands selling products on Amazon, especially before the rollout of TikTok Shop. Shoppers have practically been conditioned to check TikTok prior to making any sort of purchase on Amazon.
The introduction of TikTok Amazon ads means massive potential revenue for TikTok and an ongoing pipeline of new customers and traffic for Amazon. Rather than risk customers dropping off between the platforms, native Amazon checkout on TikTok reduces friction and potential cart abandonment. Depending on how revenues are split, it's a win-win for both parties.
TikTok Shop's (Relatively) Slow Growth in the US
There's no denying the boom of TikTok Shop, especially among creators eager to grow their affiliate presence. The flexible and potentially generous payouts to creators from Shop coupled with high-performing TikTok ads featuring creators have been a big victory for brands on the app.
That said, the growth of TikTok Shop seems to be much slower than expected. Especially given how successful Shop has been in territories outside of the US such as China.
There are reports of TikTok losing hundreds of millions of dollars last year attempting to get Shop off the ground. Coupled with the platform recently removing its steep subsidies for new sellers and discounts for first-time shoppers, Shop's growing pains are well-documented.
No doubt the ever-looming potential of a ban has slowed the adoption of TikTok Shop as some brands are hesitant to invest heavily in a new ecommerce platform viewed as volatile. That's why the timing of TikTok and Amazon's new partnership couldn't be better.
TikTok needs to drive revenue and piggybacking on Amazon's established ecommerce features is a prime (pun intended!) way to make it happen.
Integrating with Amazon Could Help TikTok Escape a “Ban”
Nobody can say for certain what's going to happen with the so-called "TikTok ban."
One week experts will claim it's a sure thing and the next week critics will claim it's not happening.
However, consider that an integration with Amazon could offer TikTok a shield from a full-blown ban.
The more integral TikTok becomes to ecommerce in the US, the more challenging it becomes to take it away with mounting pressure from US-based businesses. Not to mention that Amazon is rumored to be a potential buyer for TikTok in the case that a "ban" does go through according to Digiday.
Given Amazon's forecasted $490+ billion in sales this year and the fact that Amazon is bigger than the next 15 ecommerce companies combined, business is clearly booming. That's good news for TikTok's potential revenue but also the company's reputation which is shaky among US consumers.
As noted by Social Media Today, TikTok's integration with Amazon mirrors similar partnerships that Amazon has with Meta and Snapchat. This puts TikTok in good company with other established social media giants in the US.
What Does This Amazon Integration Mean for TikTok Shop?
This is the elephant in the room, right?
If TikTok Shop was supposed to be the app's version of Amazon, what happens to Shop now that the two companies are joining forces? Here's our take:
- Don't expect TikTok Shop to go anywhere. If anything, expect Shop to evolve!Given the amount of time and investment that's gone into the platform, it'd be short-sighted for TikTok to drop it completely. Besides, TikTok Shop and Amazon's ecommerce features are far from identical. Especially when it comes to creators.
- The appeal and growth of TikTok Shop boils down to how the platform supports creators. The flexibility of TikTok's affiliate payouts is much more enticing to creators than Amazon affiliates' fixed-rate commissions. TikTok Shop offers more upside to creators and likewise opportunities to market with creators via organic content and Shopping Ads.
How Are Creators Reacting to The News?
There’s a ton of overlap between Amazon affiliates and influencers who promote products via TikTok Shop. This potential integration means more potential money in their pockets and therefore a lot of anticipation for increasing affiliate revenue among creators.
However, some creators are understandably concerned over reduced payouts and a potential monopoly on affiliate opportunities if Amazon and TikTok join forces.
To be clear, we don't know exactly how TikTok Amazon Ads will fit creators into the mix. We expect to find out soon enough!
Takeaways and Insights for Brands
TikTok and Amazon's partnership is equal parts exciting and nerve-wracking for brands and creators alike. Beyond playing "wait and see," here are some takeaways to consider as we anticipate the full rollout of TikTok Amazon Ads:
- TikTok Shop is still building trust with audiences.Amazon has a massive headstart and advantage when it comes to trust among consumers. However, the upside that Shop offers creators is notable if you partner with affiliates. Even with this partnership, there are opportunities to leverage both rather than treat them as either-or.
- TikTok Ads featuring creators are consistently top performers. Again, we don't yet know whether TikTok Amazon Ads will feature creators from the jump. That said, influencer-friendly formats such as Spark and Shopping are among the most engaging and high-converting types of TikTok Ads. Keep this in mind when it comes to paid campaigns and whether Amazon ads make sense for your brand if creators can't be featured in them.
- Whether you're promoting products via Amazon or not, now's the time to increase your TikTok influencer campaigns.UGC and touchpoints from creators will only become more valuable with the rollout of these campaigns. Native Amazon checkout will be a nice bonus for buyers but consider how it's trust built through creators that ultimately drives purchases.
We're excited to see what's next between TikTok and Amazon, especially when it comes to opportunities with creators and what happens with TikTok Shop.
And if your brand is building its affiliate presence on TikTok via Shop, Statusphere can help!
We've recently introduced TikTok Shop tagging for creators running their influencer campaigns within our platform. That means you can instantly activate creators via TikTok Shop without sending a single DM. The result? More eyes on your storefront and more affiliate revenue for your creators!
Want to learn more about opportunities to build your TikTok influencer presence? Follow me on LinkedIn and consider getting in touch with one of our experts to learn how Statusphere's platform can help your brand scale influencer content on TikTok in a fraction of the time.
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