Amazon adds a new traffic portal! Sellers are going crazy

Amazon's cooperation with TikTok has attracted great attention. Consumers can browse Amazon products on TikTok and complete the purchase within the app, which has added a huge traffic entrance to Amazon. It is reported that this new advertising model has increased the click-through rate of products by 70%, and sales are expected to increase significantly.

Sellers hotly discuss: Who will benefit more, Amazon or TikTok? And more importantly, how to join this traffic carnival, will Amazon release a delivery window?

Amazon joins hands with TikTok to usher in huge traffic

According to the agreement between the two parties, users can now discover and purchase Amazon products directly on the TikTok App and place orders without jumping or leaving TikTok. This shopping model is achieved through Amazon's advertising on TikTok.

How much traffic does this open up for Amazon?

As of April this year , TikTok's global downloads approached 5 billion times, with 1.582 billion monthly active users, including more than 150 million users in the United States alone, covering almost half of Americans. Amazon has ushered in a huge amount of traffic.

Next, TikTok shoppers will see Amazon product recommendations in "For You". When purchasing, users can link their TikTok account to their Amazon account through a one-time setup, and then they can check out through Amazon in the product advertisement to complete the in-app purchase.

Users with linked accounts in the United States can see real-time pricing, Prime eligibility, delivery estimates, and product details in featured Amazon product ads on TikTok. Amazon representatives reportedly revealed that the introduction of the new shopping ad format has increased product click-through rates by 70%.

Sellers in the industry responded enthusiastically:

-“The Amazon train is about to get even more crowded.”

- “Will Amazon release a delivery window later?”

_“It is more beneficial to Amazon sellers. Sellers can pay attention to the content and influencers under these tags. It is more convenient to find influencers to promote and increase the conversion rate.”

-“It’s just a short-term cooperation. Amazon wants traffic and TikTok wants data.”

-"Amazon and TikTok have joined forces. Defend against Temu and focus on Amazon."

-“It’s a win-win for the platform, but it’s too bad for us TikTok merchants!”

-"What should I do with my independent website? This has dragged down two social media outlets."

This is a big deal. Amazon gives TikTok a profit to expand its user resources, and TikTok provides resources to get some of Amazon's profits. It is a win-win situation.

Sellers analyzed that Amazon has clearly felt the impact of Temu and is likely to actively seek cooperation this time. It is building alliances with multiple social media to increase traffic, from Facebook, Instagram to Pinterest, and the top-tier TikTok is a key partner.

As a result, TikTok also integrated Amazon shopping directly into the platform. The industry praised the clever cooperation: "TikTok is very smart. It is equivalent to sharing a part of the profits with Amazon. If American politicians want to touch TikTok again, there will be politicians supported by Amazon to mediate."

Now, Amazon sellers are excited about the upcoming traffic portal. Previously, off-site traffic was not accurate and could be easily intercepted by competing products, but TikTok's fixed-point push and direct ordering can accurately direct traffic.

So which products can participate in the cooperation between the two parties and in what form will the advertising be carried out?

An Amazon spokesperson said that Amazon's in-app shopping applies to select products promoted on TikTok and sold by Amazon or independent sellers on the platform.

Analysts believe that TikTok is mainly streaming advertising, and the types of advertising that Amazon connects with it are most likely SD, SDV, and SB. SD advertising may become a breakthrough point in the future.

However, it is reported that third-party sellers are not yet able to place advertisements, so please stay tuned for progress.

How can sellers join the traffic feast?

TikTok has become a new traffic pool for Amazon sellers. After the launch window opens, how can sellers use this opportunity to increase sales? An industry organization has summarized several methods:

Increase visibility : By advertising on TikTok, sellers can expose their products to millions of users who may not be able to reach them through traditional Amazon advertising.

Enhanced user experience : Amazon shopping ads integration on platforms like TikTok provides a seamless purchasing experience. Users can add items to their Amazon shopping cart directly from TikTok videos, reducing friction in the purchase process. This convenience results in higher conversion rates for sellers.

Targeted Advertising : TikTok offers powerful targeting options that allow sellers to reach specific groups of people who are most likely to be interested in their products. This targeted approach not only increases the effectiveness of your ad spend, but also ensures that the right product is shown to the right audience at the right time.

Leverage Amazon’s infrastructure : Sellers benefit from Amazon’s mature infrastructure, including its trusted payment system and fast shipping options. With Amazon’s reputation, third-party sellers can provide TikTok’s customers with a reliable and efficient shopping experience.

Maximize the potential of Amazon’s new ad formats : To take advantage of these new opportunities, sellers should consider integrating their Amazon advertising strategy with TikTok. This involves creating visually compelling content that resonates with audiences on the platform. For example, using high-quality videos to showcase products in a lifestyle context can significantly increase engagement and drive sales.

Beyond that, as Amazon’s partnership with TikTok develops, sellers should stay updated on new ad formats and features that may be introduced.

Amazon and TikTok, who is the big winner?

Although Amazon remains firmly in the top spot in e-commerce, its growth has slowed. At the same time, social media shopping has taken off, and Amazon has seized this trend and opened up new traffic channels.

From competition to cooperation, the cooperation between Amazon and TikTok reflects the fierce competition in the current e-commerce industry. The impact from Temu and SHEIN can no longer be ignored.

Temu's GMV soared to about $20 billion in the first half of 2024, exceeding last year's full-year performance. SHEIN predicts that its GMV will reach $58.5 billion in 2025, up from $22.7 billion in 2022. Both have strong growth momentum, and Amazon needs to absorb more traffic resources for defense.

But compared to Amazon's large and active user base, many sellers believe that TikTok will be the bigger winner.

Although the cooperation between the two may affect TikTok's own e-commerce business in the short term, as convenient shopping increases user stickiness, more users will try and get used to shopping on TikTok, accelerating the formation of the platform's e-commerce ecosystem.

“When users click on and buy Amazon products on TikTok, TikTok will know what products users like, which is very helpful for subsequent product recommendations. At the same time, more merchants and influencers will participate and sell Amazon products on TikTok, which will increase the activity of merchants and influencers. In the future, when the platform is fattened up and the Amazon link is removed, won’t it be a great harvest for data, influencer ecology, and merchant ecology?”

The seller believes that TikTok will use Amazon's richer products and higher platform trust to cultivate users' habit of placing orders on its own platform. After people develop the habit of shopping on TikTok, it no longer matters whether the products are supplied by the Amazon platform, and customers will complete the transfer.

This cross-border e-commerce cooperation easily reminds people of the experience of Taobao and Douyin. Douyin cooperated with Taobao in the early days, but later the two sides broke up, and Douyin established a platform mall to join the e-commerce war.

So where will the "marriage" between Amazon and TikTok go, and who will the buyers go to?

Amazon

TikTok

flow