Is TikTok the Next Amazon?

Most people still think of TikTok as a platform for dancing, lip-syncing, and creative trends—but it’s rapidly evolving into something much bigger. With millions of daily users, TikTok may just be the exposure your business needs to boost sales.

🛍️ What is TikTok Shop, and How Does It Work?

TikTok Shop is an in-app e-commerce feature that allows users to discover, purchase, and sell products directly within the platform. The integration of social media and online shopping has proven to be a powerful combination for creators and brands alike.

With TikTok Shop, businesses can showcase and sell products through in-feed videos, live streams, and a dedicated shop tab—creating seamless experiences that feel native to the platform.

Once accepted into TikTok’s Affiliate Program, users can monetize their content in two key ways:

• Affiliate Partnerships: Creators earn commissions by promoting shoppable products through their videos and live content.

• Brand Deals: Successful creators often attract sponsorships. Brands collaborate with these creators to feature their products and drive conversions using their loyal audience.

📈 Why Has It Become So Successful?

According to ChannelEngine and Business of Apps, TikTok has skyrocketed since launching in 2017, becoming the 7th most downloaded app of the 2010s. As of 2024, more than 60% of users say they use TikTok as a source of shopping inspiration.

One reason for TikTok Shop’s rapid growth is its accessibility. Previously, users needed 5,000 followers to join the affiliate program, but in 2024, that threshold dropped to just 1,000 followers—unlocking monetization opportunities for micro-influencers and everyday users.

Unlike traditional e-commerce platforms, TikTok’s live shopping features offer real-time product demos and Q&As, helping shoppers make more informed and confident purchase decisions. This level of authenticity and interaction gives TikTok Shop an edge over platforms like Amazon.

💡 Is It Worth It for Businesses?

Absolutely. In 2024, 47.2 million people shopped on TikTok, with a reported $32 million spent per day on the platform, according to Capital One Shopping Research. TikTok isn’t just competing with Amazon—it’s challenging it.

The beauty of TikTok Shop lies in its dual value:

• For creators, it offers a way to share products they love while earning income.

• For businesses, it opens up a new revenue stream with lower costs than traditional advertising.

TikTok’s algorithm, specifically the For You Page (FYP), creates a hyper-personalized feed that recommends products aligned with users’ interests—making it easier than ever for your products to reach the right audience.

TikTok itself explains it best:

“TikTok Shop is a completely personalized and fully integrated commerce solution, where sellers authentically connect with creators and communities to drive meaningful shopping experiences.”

🔐 What About Safety?

As a newer player in the e-commerce space, TikTok is taking user protection seriously. The platform has invested nearly $1 billion in tools, technologies, and personnel to combat counterfeit products and ensure marketplace integrity (source).

🚀 Final Thoughts

While China currently leads the live shopping space, expected to hit $55 billion by 2026, the U.S. is catching up fast—and TikTok is leading the charge.

Sure, concerns about purchasing through newer platforms still exist, but one thing is clear: having a presence on TikTok can be a game-changer for your business.

Whether you’re a small business or a national brand, TikTok Shop offers a low-barrier, high-reward opportunity to connect, convert, and grow.