Over the last year, Amazon has slowly integrated itself more deeply with TikTok.
The two tech giants once seemed at odds, given that they both operate e-commerce marketplaces. That was especially true after TikTok introduced TikTok Shop, its platform that lets users view product catalogs and check out directly in the app.
TikTok Shop is still small, but because TikTok is where so much product discovery happens, the potential of the platform remains massive.
Now, Amazon and TikTok are integrating their advertising more closely. In recent months, Amazon and TikTok have made it possible to:
- Check out directly through your Amazon Prime account without leaving the TikTok app
- Refer TikTok users to your DTC site through Buy with Prime ads
- Fulfill all of your TikTok orders through Amazon’s fulfillment system, specifically Multi-Channel Fulfillment
Here’s a rundown of what’s happening—and what it all means for the future of Amazon and social commerce.
What’s the deal with shoppable TikTok ads?
Over the summer, TikTok and Amazon announced their first major ad partnership—shoppable ads that show up on TikTok, and allow users to check out with Amazon. These ads surface on users’ “For You” pages on TikTok.
The key here is the ability to link your Amazon account to TikTok. Users that choose this option will be able to see real-time pricing, delivery dates, and other product details on every ad.
From there, they can make purchases via Amazon directly on the TikTok app.
These ads are served from the Amazon console, using Amazon’s targeting data. The problem is just that you don’t have much control over them.
At this point, advertisers aren’t able to adjust TikTok placements or their bids on those TikTok placements.
What about TikTok ads that integrate with Buy with Prime?
More recently, Amazon and TikTok announced a second ad partnership. This time, advertisers can refer TikTok ads back to the Buy with Prime checkout page on their DTC site.
As a refresher, Buy with Prime is a checkout option that you can add to your DTC site, where shoppers click to make a purchase through their Prime account. You keep all of the same shopper data.
These Buy with Prime ads are more dynamic than the typical TikTok ad, showing real-time delivery estimates and the Prime shipping logo.
But unlike with the first TikTok x Amazon partnership, these are ads bought through TikTok, using TikTok’s data. You just slap the Buy with Prime label on them.
So adding an Amazon checkout option on your TikTok ad might boost conversions, but you aren’t re-targeting people who already searched your brand term on Amazon.
(This is possible for the new DSP for Buy with Prime ads, however.)
What about Amazon fulfillment on TikTok?
We’ve been talking so far about products that you might advertise on TikTok but that you ultimately sell on Amazon or Shopify.
The other side of the coin here is that you can also sell products directly on TikTok Shop, TikTok’s own marketplace. (As a refresher: We talked in-depth about what TikTok Shop is here.)
Long story short, the commission fees on TikTok Shop are super low, but so are sales, according to Marketplace Pulse.
If you do sell on TikTok, however, you are probably still going to be relying on Amazon. Amazon has been beefing up its Multi-Channel Fulfillment service, which allows Amazon to ship products bought and sold on non-Amazon platforms.
Many TikTok Shop brands ship their products through Multi-Channel Fulfillment, and Amazon keeps making it easier to integrate your Amazon fulfillment system with TikTok.
You can store your products in one fulfillment center, as many brands already do, and ship them to customers across multiple different channels.
Because you don’t need to create a separate system for TikTok Shop, it just makes launching on the platform that much easier.
What is the future of Amazon and social media?
If you’re confused by all of the social media tie-ins Amazon is offering, you probably aren’t alone.
Both of these TikTok partnerships are similar to Amazon’s offsite Sponsored Products ads, which are SP ads bought and targeted through Amazon that just happen to show up on Pinterest, Buzzfeed, etc.
All of these tie-ins are exciting for advertisers, and it’s important to start paying attention and experimenting with these systems now.
The future of e-commerce is probably going to be a blend of social media and traditional e-commerce platforms.
And the first brands that figure out how to leverage both Amazon and other social platforms simultaneously are the ones who are likely going to get an edge.
