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TikTok Shop vs Amazon: A Seller’s Guide to Choosing the Right Platform
Although it’s barely been more than a year since TikTok launched its social commerce initiative, it’s already managed to accumulate 15 million sellers and the U.S. sales on the platform is expected to rise tenfold to $17.5 billion.
The same article also states that 81.3% of TikTok users converted into TikTok Shop customers in 2024, showing a 17.3% increase in conversion from 2024. This essentially means that TikTok Shop offered a worthy service to their audience in 2023 so much so that in 2024 it not only retained the existing customers (as repeat buyers) but also gained an additional percentage of new audience.
This leads us to the conclusion that TikTok must be playing its cards right to convert audiences into customers.
But now the question arises, is this growing popularity enough to see eye to eye with the decades-old supremacy of ecommerce giant Amazon? Here we discuss the major differences between TikTok Shop vs Amazon to understand which one of these provides services that align with your seller goals.
TikTok Shop vs Amazon: an Overview
TikTok Shop
TikTok Shop offers an opportunity for sellers to make videos and sell their products directly from within the TikTok app. TikTok has redefined convenience by connecting a marketplace with its entertainment platform harboring over 1.8 billion monthly users.
The in-app shopping experience within an entertainment platform boosts product discoverability giving a fluid feel to the entire experience. The experience is made effortless for both buyers and sellers.
From the myriad content we consume daily, millions have had wishful thoughts about coming across a product and having to buy it at one tap. TikTok bridges the gap between desirability and accessibility delivering the products you offer to its target audience. The sophisticated algorithm of TikTok detects the user’s area of interest based on the activity on the TikTok app and displays the products that they are most likely to be inclined toward.
It has just been a year since TikTok Shop launched in the US and playing their cards since then. They recognized their strength in leveraging the consumer habits and digital behavior of the new generation and developed a futuristic shopping platform that appeals to them including an algorithm that is vastly different from regular ecommerce brands.
Amazon
Amazon marketplace’s interaction with the customers significantly differs from the has a completely different interaction with the consumers. Amazon wins over the sellers’ preference due to its established reputation, inter-border audience base, and delivery.
It offers a wide range of product categories and provides various tools and services to help sellers manage their online businesses efficiently. Established in 1944, Amazon initially started as an online store for books. Gradually it grew into an elaborate marketplace for personal care products to electronics— anything under the sun. It gained popularity depending on the swift at-home delivery and super-reliant customer support.
The extensive product categories make it stand out from its competitors making it the #1 ecommerce retail site in the US. The takeaway from this is you can sell anything and still find your target customers and earn profits.
But the soaring popularity of Amazon often makes it hard for sellers to stand out. To solve this issue Amazon came up with a complete suite of digital solutions to streamline services required to market your products and fulfill your orders.
So both being popular marketplaces, is TikTok Shop the same as Amazon? In short, NO. although both are marketplaces, they both run on two separate business models targeting two different purchasing behaviors of the crowd. Keep reading to understand better as we unravel the truth.
TikTok Shop vs Amazon business model
Here are the key differences between TikTok Shop and Amazon when it comes to their core business model:
- The fundamental gap — TikTok Shop stresses upon a model purely built around content consumption and engagement where products are solely introduced through catchy video content. Giving rise to a new concept called social commerce.
Whereas, we do not see Amazon using such a model. It instead focuses on being a global marketplace connecting buyers and sellers and enabling them to make successful purchases. Absolutely straightforward!
- Impulse vs intent dichotomy — While content creators grab people’s attention by endorsing certain products, viewers instantly feel urgent to possess them. Since a couple of taps are enough to complete a purchase, it happens instantly without them having to spare much thought about it. It is mostly driven by impulse and the spontaneous purchases are facilitated by TikTok Shop.
On the other hand, Amazon sales are driven by intent where a customer experiences a need, and that leads him to open the app and go through the products. This might not be driven by need but the intent remains constant— so we get to see a deliberate pattern.
TikTok Shop vs Amazon: Market entry
TikTok Shop
To tap into TikTok’s massive user base, a seller needs to take advantage of content. Only then you’ll get access to TikTok Shop to get your items listed and start selling. But TikTok Shop is only available in the UK, the US, and some South Asian countries limiting its reach. You get to explore the benefits of TikTok shop once you set up your account via the TikTok Seller Center.
Apart from the catchy video content, just like Amazon, TikTok Shop requires high-quality images and improved descriptions. For TikTok, a seller like yours needs to realize the importance of content hence participating in viral trends and trending content can boost your visibility more than anything. This can require you to make entertaining or informative mini-videos on your product offerings.
Amazon
You can be far from a content creator and still establish a straightfoward business via Amazon. Simply create a seller account on Amazon Seller Central and get started after choosing a plan.
Amazon provides various resources, such as Seller Central tools, brand registry and PPC, to help sellers navigate the platform and optimize their online store for success. Seller Central tools and guides will assist you in developing a full-fledged well-optimized Amazon presence.
With special dedication towards increasing visibility, leveraging keyword research and Amazon’s search term reports, sellers (like you) can make themselves visible organically. Moreover, Sponsored Products and Sponsored Display and Sponsored Brands are different types of ads that you can use to promote your product to reach a wider audience and your store experiences an influx of traffic.
TikTok Shop vs Amazon: Target Audience
The focus of TikTok Shop has always been centered around the purchasing habits of the emerging crowd. It has targeted the virality of TikTok and used engagement to reach the target audience.
It heavily emphasizes visual merchandising with strong CTAs and live shopping options that align with the expectations of young generation shoppers. You take a quick action or it is gone.
However, Amazon has an incredibly broader reach. After all, this marketplace has been active for more than two decades. In addition to the several thousands of categories, buyers have begun to use Amazon as a search engine, essentially resulting demographics and market itself as a fast and reliable option.
TikTok Shop vs Amazon: Which platform is better for targeting a younger audience?
TikTok avails spontaneous purchasing opportunities through engaging videos that match the purchasing patterns of Gen Z and younger millennials.
As a seller, the quick action requirement is extremely beneficial in boosting sales as it increases the frequency of purchases. On the other hand, it increases the chances of order cancellation due to the impulsivity of the purchase so make sure you set your TikTok store policies accordingly.
Amazon vs TikTok Shop: Product listing
TikTok Shop
- Easy to handle interface — Sellers are given complete control to easily optimize listings with images, descriptions, and type variations (size, color, etc). You get to enhance listings using short-form interactive video clips and live demonstrations in a dynamic yet engaging setup.
- TikTok algorithm — When we are comparing TikTok Shop vs Amazon, it is highly beneficial for you to know that their algorithms work in fundamentally separate ways. TikTok’s algorithm is fuelled by engagement and user interest, which dynamically pushes your products into the feed of target users.
This process increases the chances of your product reaching the correct audience increasing the likelihood of successful conversion. Optimizing listings with tags can be the only way you can influence the algorithm to reach the correct audience. So, do not forget to add relevant keywords and descriptive visuals.
- Product tags — On TikTok, a seller can add tags to video content that viewers get to see and buy directly while they’re scrolling through which is the most notable feature. As the difference between desire and access narrows down, the potential of conversion increases.
Amazon
- Robust Listing Options – Amazon markets itself as a marketplace harboring elaborate listings. Here sellers can incorporate an unbound number of products from their catalog, optimize it, and help it reach the most number of target customers. In this process, one can use the best practices of listing optimization with HD images from different perspectives, keyword-rich descriptions, and A+ content to result in better storytelling and brand storytelling.
In this case to curate the best listing for your products head over to SellerApp’s listing quality checker to assess and transform your existing Amazon listings. You get in-depth insights and actionable on enhancing your listing to boost organic searches.
Unlike automated unannounced product displays which almost become uncertain at one point, products are primarily discovered via intentional searches. Thus, SEO optimization plays a crucial part for you to make your products visible. Even more so than TikTok.
Amazon Vs TikTok Shop: Ad opportunities and promotions
If you’ve been wondering what advertising options are available on TikTok Shop vs. Amazon, here are your options and sources to run ads on Amazon and Tiktok Shop:
TikTok Shop
- Hashtags by brands: to ride the wave of virality on TikTok, brands often participate or create campaigns around themes or products that align with their offering. This helps a campaign or a new launch extend its reach, and get the attention it deserves.
- TikTok in-app ads: these native well-blended ads pop up in the popular “For you” section and associate seamlessly as images, videos, etc., with the content itself. The brilliance of these ad placements can make deliberate brand awareness tactics look seamless. These ads are based on users’ individual content preference hence it increases engagement rate.
- Live stream shopping events: this is one of the features that demands immediate action from customers leading to a greater selling count.
- TikTok ads manager tool: this enables campaign optimization, analysis performance, and target customers.
- Top view ads: TopView ads are a premium ad format. It appears as the first thing that pops up when you open the app covering the entirety of the screen. They ensure maximum visibility and are ideal for large-scale sellers with high budgets.
- Branded Effects: It is an interactive tool specifically designed to increase active participation. Fueled by the engagement, brands get the visibility and attention they aim for. Includes custom stickers, filters, etc.
Amazon
- Sponsored Products: PPC ads are available for Amazon sellers to promote listings across the product details page and search page. It is highly effective for driving sales and increasing product/brand awareness. Say you’re an established seller planning a new launch, sponsored ads are extremely effective in driving traffic to the new product.
- Sponsored brands: it is a tool to generate brand awareness either via unique visuals, catchy titles, or a campaign theme. Sponsored brands are mostly visible at the top of the product search page. The entire storefront gets visibility due to Sponsored brands.
- Display Ads: you can see Amazon display ads across the Amazon website or the web. This type of ad is especially helpful for retargeting customers giving them a subtle nudge of reminder.
- Amazon Live: there are a few parallels that you get to see when comparing TikTok Shop vs Amazon. Amazon Live is one such. Here, store owners display their products interacting with viewers in real time creating an interactive shopping experience.
- Customizable storefronts: here you get to see the entire brand catalog available on Amazon almost giving it a feel of a virtual store tour. This digital storefront on Amazon enhances how a customer views a brand and determines their level of resonance with it.
TikTok Shop vs Amazon selling fee
| Fee Type | TikTok Shop | Amazon |
|---|---|---|
| Commission Rate | Starts at 1.8% (first 90 days), then 5% | Typically 8% to 15%, depending on the product category |
| Transaction Fees | Variable across countries. $0.30 for U.S sellers. | N/A |
| Closing fee | N/A | 0.99% to 2.50% of selling price |
| Monthly Subscription Fee | N/A | $39.99 for professional accounts |
FBA vs FBT: where does it actually differ?
TikTok sellers have self-fulfillment options, TikTok shipping delivery, and TikTok Shop Fulfillment (FBT) options. FBT has entered the market recently and its fulfillment process emulates that of Amazon. However, the reach of TikTok’s fulfillment program is limited.
In contrast, any seller can take advantage of Amazon FBA as long as it makes sense for their business. FBT is invite-only so not everyone would be a cut-off for the program.
While Fulfillment by TikTok is only available in the UK and the US FBA goes far beyond. FBA is open for every Amazon seller helping emerging businesses thrive. Otherwise, the process is somewhat similar; especially when FBT is going above and beyond to implement protection protocols
Cross-Platform Strategy for Success
Why settle for just one when you can make the most out of two excellent platforms TikTok Shop and Amazon— the former bringing a fresh new perspective to acquire new customers and the latter one with decades of reliability?
So charge up your ecommerce game by combining the best of both worlds in a cross-platform strategy. While you derive the traffic from TikTok by sharing Amazon listings, Amazon’s unblemished reputation makes your products authentic and reliable in the audience’s eyes.
The focus on these key agendas:
- Consistent branding: Striking consistency across visual elements so that brand recognition is boosted across both platforms. When messaging, pricing, and visuals align, it gives the storefront a professional look.
- Streamlined listings: Ensure product descriptions are detailed and images align with the descriptions. When both platforms are consistent it results in a cohesive purchasing experience.
- Complementary strengths: Recognise the power of TikTok in attracting a fresh new generation audience. Their creative content is immensely attention-grabbing promoting products effectively while while leveraging Amazon’s reputation to close sales.
Final thoughts: Which one is better TikTok Shop vs Amazon?
Choosing between TikTok vs Amazon selling completely depends on the agenda you’re approaching it with. Here your business priorities matter as well as term goals.
Amazon is ideal for planning long-term scalable growth, leveraging logistics, and extending the customer base if you’re an established seller. Sellers can leverage the structured logistics and fulfillment service if they prefer convenience and streamlined operation in exchange for a monthly fee.
On the other hand, if the goal is to find a more dynamic environment offering more interactive sales, the TikTok shop is the way to go. You can capitalize on social media trends and target the young generation consumers, TikTok is perfect for you in the TikTok shop vs Amazon battle.
Upfront cost and immense potential for influencer marketing make it an undeniable contender for modern-day sellers. A platform, although at its nascent stage, has displayed ample growth in its recent trajectory.
So, instead of stressing yourself out thinking about which one is better, we suggest you take the combined cross-platform approach to use the unique strengths of both platforms to maximize the possibilities for your business.
Additional Readings:
Best Selling Products on Amazon
How to Sell on Amazon as an Individual Seller
What to Sell On Amazon: To Make Easy Money Complete Guide
How to be a successful Amazon Seller – Amazon Selling secrets
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