A social shopping showdown is brewing between Tiktok Shop and Amazon. TikTok is reportedly recruiting Amazon sellers, even as a US ban looms over ByteDance.
Known for viral dance trends and bite-sized videos, TikTok (and its Shop section, specifically) has stepped up as a serious player in the e-commerce game.
According to CNBC, Amazon sellers are being lured with promises of low fees and steep discounts. Beyond the seller programme, the social media platform also hired talent away from Amazon.
As per the report TikTok ‘shopped’ for marketing roles and creator relationships from within Amazon’s wheelhouse. These hires are helping TikTok Shop build its reputation as an e-commerce powerhouse.
What sets TikTok Shop apart
For small businesses and individual sellers, TikTok Shop offers something unique: the ability to easily and effortlessly turn social media followers into customers.
And the numbers back it up. Market research firm ecommerceDB projects TikTok Shop’s gross merchandise volume (GMV) to hit $50 billion by the end of this year.
That would mean it doubled what it achieved in 2023. While still miles behind Amazon’s projected $757 billion GMV, TikTok’s rapid growth cannot be overlooked.
In addition, TikTok’s largest audience – Generation Z – is 117% more likely to shop from influencers, according to PYMNTS. Many brands have embraced influencer culture to drive sales.
Why sellers love TikTok
Sellers find it easy to manage their sales with TikTok’s in-app offerings. These features have been designed with social shopping in mind.
Since billions of people scroll through TikTok’s FYP and feeds, every view and every click could be a potential sale.
What’s more, it’s a sale that can be completed right within the social media app. There’s no need for the buyer to navigate through to another website or third-party payment portal.
And millennials? They love that. They want comfort over convenience, they want software and apps to make their lives easier.
Beyond millennials’ affinity for TikTok, they also adore Uber and Lyft, and food delivery apps like DoorDash and GrubHub, according to research done by The Balance.
So, TikTok’s blend of entertainment and shopping is appealing to sellers looking to expand their reach, and to buyers who just want a fuss-free shopping experience.
Amazon responds
Of course Amazon isn’t sitting by quietly.
Spokesperson Mira Dix tells CNBC sellers are engaging with Amazon’s store “more than ever before.” Especially since shopping features costs sellers “an average of 70% less” than other shipping alternatives.
“Our selling partners are incredibly important to Amazon, and we work hard to innovate on their behalf and support the growth and success of these businesses across all of their sales channels,” Dix added.
The looming TikTok ban
But there’s a cloud hanging over TikTok’s rapid growth.
TikTok’s parent company, ByteDance, was ordered to sell the platform by January 19, 2025, due to national security concerns in the US.
TikTok is challenging the ban in court, but its future in the US remains uncertain.
Even so, TikTok Shop is still making waves. And if the ban doesn’t go through, Amazon could have a serious challenger on its hands.
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About the author
Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.
