TikTok and Amazon have had a symbiotic relationship in the years since TikTok’s popularity blew up in 2020. The app has a major influence over the shopping habits of users across the internet, especially valuable younger consumers like Gen Zers who are the heaviest users of the platform.
While influencers on the app can promote products of any kind through viral trends and shopping-related content, TikTok has been especially good at driving shoppers to one place in particular: Amazon.
The powerful link between TikTok and Amazon is a big opportunity for sales, but until recently, the relationship between the two platforms looked more like a rivalry than a partnership. That all changed last month when Amazon inked a new deal with TikTok to allow users to make purchases directly through the app, similar to its partnerships with platforms like Snapchat, Facebook, and Instagram.
So what does the new deal between these major social and ecommerce players mean for brands?
The past and present of Amazon and TikTok’s dynamic
Amazon and TikTok have been frenemies for a long time. Last year, the rivalry seemed to be heating up, even as both companies were angling to tap into the opportunity the other platform offered: TikTok was looking to hire a “Head of Amazon” and Amazon had significantly increased its ad spend on TikTok (while decreasing its investment in other advertising platforms).
These moves had some marketers wondering if the platforms could create a new era of media convergence by turning away from Google and Meta’s model of competing in separate walled gardens rather than collaborating. But the competition only intensified.
Amazon continued to invest in its attempts to build in-platform discovery features that mimic social media feeds, like Inspire and Posts, to spur impulse buying. TikTok, on the other hand, leaned into Amazon’s retail lane by launching TikTok Shop, where users can make purchases directly within the app.
Source: Amazon
Then Amazon announced partnerships with TikTok’s social competitors, including Snapchat, Facebook, and Instagram, allowing users of those platforms to buy without leaving social media.
It was looking bleak, but their new partnership is definitively changing the narrative.
Maximizing the impact of an Amazon/TikTok partnership
In August, TikTok and Amazon announced a new integration between the platforms that will allow users who link their accounts to make Amazon purchases without leaving the app.
TikTok users who link their Amazon accounts will be able to view information like delivery time estimates, real-time pricing, and more on the platform. Amazon product suggestions will also pop up on “For You” pages to further promote these items.
Amazon is looking to take advantage of the increasing popularity of social commerce by reducing friction in the purchasing process and enabling impulse buying in response to viral or inspirational content–and it’s finally ready to work with TikTok, one of the biggest product discovery engines on the planet, to get there.
Source: TikTok
This presents a major opportunity for Amazon, TikTok, and brands advertising on the platforms–but it’s too soon to say how successful this partnership will be. In the past, consumers haven’t always responded well to shoppable features like TikTok Shop taking over their social media feeds. These options can feel intrusive or overly sales-y for users looking for a relaxing, authentic social media experience.
But the social-to-Amazon purchase pipeline is a notably strong one. The opportunity to buy in-platform from Amazon might prove more popular since many users are already using Amazon to buy items they discover on TikTok.
What the new Amazon and TikTok partnership means for marketers
Although the partnership isn’t in full swing yet, we’ve already had a preview of how this deal might work based on Amazon’s relationships with other social platforms. Ideally, the integration will create an efficient flywheel that helps people make real time purchases when they’re tempted by content on TikTok.
Brands should look to start testing how to take advantage of this synergy between Amazon and TikTok. Although direct integration isn’t available to all advertisers yet, you may soon be able to organically drive purchases with integrated ads and content as users discover your products on TikTok if your brand has an Amazon store.
Source: TikTok
While we wait for the integration to become more widely accessible, brands can get ready for the future of converged commerce by taking a look at their internal structure. Siloed teams for social media and retail can create divides just like the one between Amazon and TikTok, which will stop your strategy from reaching its full potential.
Look for new ways for these teams to work together instead of seeing themselves as competitors. Open up the conversation between these teams and your finance department to make sure dollars can be moved between categories, since different teams often have individual budgets that can’t be exchanged easily.
Try bringing teams together by setting up brainstorming sessions so experts from multiple teams can exchange ideas and bring their perspectives to the table.
You can also start taking steps to integrate Amazon and TikTok now, even if the official partnership hasn’t fully rolled out. Try doing some tests to see if a combined strategy is more effective, so you’ll be ready once the integration is available.