Amazon and TikTok are rumored to be joining forces, but don't be misled by the media

Recently, Amazon announced that it has signed a cooperation agreement with TikTok, allowing TikTok users to check out and purchase Amazon products on the site without leaving the TikTok App. At the same time, Amazon and Pinterest have also signed a similar agreement.

As the cooperation agreement between the two giants was signed, an Amazon spokesperson said that the plan aims to make it more convenient for customers to shop on social media, and "selected products from the Amazon platform promoted on TikTok can be purchased within the TikTok app."

Isn’t this the same operation that Douyin and Taobao did in China a few years ago, where they also opened up ports to each other? But sellers should not over-interpret this. TikTok only agreed to open a traffic channel for Amazon's products without redirecting.

The specific operating principle is as follows:

1. Users will see Amazon product recommendations in the "For You" push. When you are ready to buy, you can link your TikTok account to your Amazon account through a one-time setup.

2. Once the accounts are linked, Amazon customers can complete shopping checkout in product ads without leaving the TikTok app, allowing for a faster and smoother experience.

3. Users who choose to link their Amazon US accounts will see real-time pricing, Prime eligibility, delivery estimates, and product details in TikTok's featured Amazon product ads.

4. Users can choose to cancel their associated Amazon account at any time in TikTok's app settings.

TikTok's cooperation with Amazon is far more than a simple function upgrade:

For TikTok , the cooperation with Amazon not only makes up for its shortcomings in the supply chain, but also opens up new channels for commercial realization. And the greatest value of this time should be account association, TikTok can know which users are accurate e-commerce users!

For Amazon, TikTok's massive traffic pool will be directly imported into Amazon, bringing a large number of potential buyers to merchants. Amazon's high-quality products and brands can also be more widely displayed and disseminated through the TikTok platform. According to Amazon representatives, the introduction of the new shopping advertising model has increased the click-through rate of products by 70%!

For Amazon merchants, Tiktok will become a very, very important source of traffic and customer acquisition channel in the future!

As of April 2024, TikTok's global downloads have exceeded 4.92 billion times, and the number of monthly active users has reached an astonishing 1.582 billion, ranking it among the world's fifth most popular social applications.

In terms of geographical distribution, TikTok has demonstrated a strong global presence, with the number of users in the U.S. market reaching 148.92 million, which is particularly prominent. In addition, young people aged 18-24 account for 36.7% of TikTok users, which has a strong appeal among the younger generation.

In the business field, you can understand this by referring to the data from TikTok Creative Center during Prime Day.

During that period, the #primeday tag generated 25,000 video posts, with 223 million views, ranking second in TikTok. This shows that shopping traffic in TikTok is very large, and it is no longer just entertainment traffic as people imagined in the past.

This morning I saw a lot of over-interpretations in the articles, and I felt that now I could directly use tk to sell products. It seemed that Amazon sellers were very happy. Some said that they should quickly find a group of influencers on TikTok, shoot videos, make materials, and then use Amazon’s products to try to attract traffic.

There are even reports that AMZ colleagues in Shenzhen have been holding meetings overnight and are preparing to take action.

But! Actually it is impossible! According to the official document, it only states that Amazon can advertise on Tiktok, but it cannot be used as a feed.

After Amazon and TikTok cooperated, although social media users can see the real-time prices, delivery information, etc. of a large number of products, what they actually see is not the complete Amazon product interface, but a "selected version of Amazon."

Moreover, Tiktok has conditions for completing the process without redirection - when Amazon paid advertising content is pushed to users, the user can only redirect if they have an Amazon account associated with TK.

The combination of the two can be understood in this way: TikTok solves the supply chain problem and Amazon solves the huge traffic problem.

Especially for Amazon sellers, tk is a huge and accurate new traffic pool! Sellers can display their products to more new customers by advertising on TikTok. These new customers have been active on social media, and a considerable number of them are beyond the reach of Amazon CPC advertising , which will greatly increase the traffic and order increment for sellers.

TikTok ’s powerful targeting options give sellers the opportunity to reach specific groups of people who are interested in their products, making it possible to “show precise products to precise audiences at precise times,” greatly increasing advertising conversion rates.

What kind of sparks will be created by this combination and complementary advantages? Let's wait and see! In short, it is recommended that you study the official documents and foreign comments by yourself to learn more about foreign first-hand information.