02/03/2025
Is TikTok Shop a real threat to Amazon FBA?
Yes, Tiktok in my belief is one of the top emerging tools in the market right now for selling to boost their revenue in the E-commerce industry.
I believe it will soon be the top thing sellers will focus on in the next 3 years
Right now, TikTok’s algorithm makes it easy for products to go viral, leading to spontaneous purchases directly within the app. In contrast, Amazon relies on search-driven shopping, which means products need to rank well on keywords to get discovered. I help many sellers to rank their products on Amazon with huge investment upfront cost, I understand the game here.
Compared to Amazon, even if you sell your products 100$, Amazon will eat up 26% of your total revenue which is not a good thing for your business right? Obviously it depends on the products you are selling now, the number even higher.
In the meantime, Tiktok offers lower commissions and promotional incentives for sellers which is around 6%. I’m not good at math, but I can tell which one you should prefer on this alone.
Now, it comes down to, which is the strategy that you can commit to generate revenue and a good Conversion Rate for your products
🚀Tiktok has simple advertising structure with easy targeting features, 4 types of targeting such as Video Shopping Ads, Live Shopping Ads and Spark Ads even easier than Facebook Advertising or any other type performance marketing tools
🚀Tiktok has a feature where we can leverage influencers and live shopping to drive impulse buys, while Amazon lacks a strong social commerce element. This is the key thing I HIGHLY SUGGEST you try and leverage this first.
🚀 TikTok allows sellers to start with minimal inventory, whereas Amazon FBA requires bulk inventory and upfront investment in warehousing.
But I have to say, Amazon stills hold it advantages in these areas:
🚀 Amazon’s FBA network is unbeatable for fast shipping (1-2 days for Prime customers).
🚀 Shoppers trust Amazon’s return policies, product reviews, and customer service, while TikTok Shop still faces concerns over scams and quality control. So this means Amazon has a higher conversion rate than Tiktok for sure.
🚀 People go to Amazon with purchase intent, while TikTok shoppers are more impulse-driven. Amazon is still king for high-ticket and essential products.
Would you be interested in testing some of your products on TikTok Shop? 🚀