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  • Sourcing Journal

    Amazon Teams with TikTok to Enable In-App Purchasing

    By Meghan Hall,

    21 hours ago
    https://img.particlenews.com/image.php?url=21SyTO_0uvhH0BH00

    A new partnership between Amazon and TikTok could be the intersection of trending and spending.

    The e-commerce giant has inked another social media-oriented partnership, this time with the video-centric app, that will allow users to purchase items from its marketplace without ever leaving TikTok. Amazon has previously partnered with Pinterest on a similar initiative.

    Though Amazon has not shared details about its new partnership, TikTok announced that its users will be able to link their TikTok account to their Amazon account. That will then allow the user to make purchases from Amazon in the TikTok app.

    As they make purchases, users will be able to view current pricing, whether the item is eligible for Prime shipping, delivery time estimates and details about the product, just as they would be able to do on Amazon’s own app.

    According to TikTok, consumers can unlink their Amazon and TikTok accounts from one another whenever they wish.

    TikTok said in its announcement that it is “excited to collaborate with Amazon to offer a seamless and fun shopping experience.”

    An Amazon spokesperson said the new partnership will enrich customers’ shopping journeys.

    “Amazon is making it more convenient for customers to shop in social media by expanding in-app shopping,” they said. “In-app shopping with Amazon is available for select products advertised on TikTok and sold by Amazon or by independent sellers in Amazon’s store.”

    Already, scores of creators hawk Amazon products on the app through the Amazon Influencer program, which rewards creators for sharing product recommendations and links with their audiences. When other users purchase items through those links, the influencers earn commissions on the products. Amazon states that it offers a 4 percent commission on apparel, accessories and luxury fashion.

    A spokesperson for the company said it does not expect its influencer program to be affected by its new partnership with TikTok. That’s because the new partnership pertains only to paid advertisements run by Amazon.

    Neither Amazon nor TikTok indicated how consumers’ data will be used or shared when they link their TikTok and Amazon accounts to one another.

    One of the major question marks for brands currently selling items via TikTok Shop has been around first-party data . When a customer purchases items via TikTok Shop, a brand or retailer doesn’t have access to the same amount of consumer data that they would if the user went directly to their site to make a purchase. In a time where first-party data, loyalty programs and personalization have become increasingly important to brands’ strategies, losing out on that data could hinder companies.

    Amazon is not selling through TikTok Shop with this partnership; instead, it’s making ads more shoppable. However, if Amazon is able to funnel in additional data about its customers through their TikTok information, that could prove invaluable for the company, particularly as it competes against Walmart, Shein and Temu for market share.

    Regardless of the data implications, the latest move could still help Amazon continue its battle against ultra-low cost good marketplaces. According to Capital One data, 30 percent of people who use TikTok on a daily basis have already tried TikTok Shop, and 41 percent of TikTok users said social media has an influence over the apparel they purchase.

    Though Amazon may not be directly integrating into TikTok Shop, its new commerce option could appeal to an untapped market on the social media platform; some users have questioned the quality of items sold via TikTok Shop, while long shipping times have given others pause.

    If Amazon can alleviate consumers’ concerns with validity or fast shipping while also meeting them where they already dwell, the market opportunity could be major. The company did not return Sourcing Journal’s request for comment on how the partnership will be beneficial for it.

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