Please Can We Tap The Brakes On The TikTok Amazon Competition?
Amazon is a logistics monster, with the best distribution and delivery network in the world.
TikTok is a content-driven discovery engine.
The two companies are not even comparable.
The best TikTok can be is a place for influencers to help consumers discover and research either very high-margin (how much do you think a pop-dart costs to make) or luxury items (like a high-end stroller). It's due to the economics of the channel, and the inclination of influencers to gravitate to the biggest payouts on either the most considered or the biggest impulse purchases.
Are you going to stop going to malls with your friends because you are on Tiktok?
Nope. Something you saw on TikTok might drive you into the mall, however.
Are you going to stop shopping at WalMart because you are on TikTok?
Nope. A beauty technique you learned on TikTok might encourage you to try a new beauty product, however.
Are you going to stop the Subscribe and Save you have on Amazon because you are on TikTok?
Nope. Those paper towels are likely essentials and will never appear on TikTok.
In short, TikTok is about awareness and research/consideration. For purchases, except on cheap impulse items, consumers are still going to shop around.
Put another way, if TikTok becomes primarily an eCommerce engine, it will lose what makes it TikTok - I go there to be entertained and unwind. If every 10th video tries to entertain and sell me something, sure I can tolerate that.
More than that? Sorry, I'll pass.
If I'm considering a product, TikTok can help me research something I want. But influencer economics means that low to mid-priced items will be out of the market. That means most of retail - and the heart of Amazon and Walmart's business - is off-limits to it.
It still doesn't mean that there aren't interesting reasons to be there. But success will depend on category, use case and economics.
Not just "being on TikTok."
