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April 18, 2025
Why Is Amazon Sniffing Around TikTok?
Amazon has reportedly landed among the suitors to acquire TikTok in a move that could give it instant access to the video-sharing app’s 170 million U.S. user base and influence with younger consumers.
News of the bid, first reported by The New York Times, came just before TikTok-owner ByteDance faced an April 5 deadline to sell the social media platform or face a shutdown in the U.S. On April 4, the Trump administration for the second time extended the deadline another 75 days.
Legislators in both parties have expressed national security concerns over the app’s Chinese ownership.
Amazon’s bid came via a letter addressed to Vice President JD Vance and Howard Lutnick, the commerce secretary, but sources told the Wall Street Journal that the bid isn’t “likely to progress.”
Still, Amazon has long had ambitions to build more of a social media presence, acquiring the Goodreads book-review site in 2013 and the Twitch gamers platform in 2014. In 2019, a QVC-like Amazon Live livestreaming platform was introduced to a dedicated portion of the Amazon.com website.
In late 2022, Amazon added Inspire, a short-form video and photo feed like TikTok, onto its app, but the retailer removed it in February of this year. TechCrunch speculated that Inspire’s failure was because its compensation was too low to entice influencers to contribute the content required to drive traffic.
TikTok nonetheless has soared as a leader in social commerce since the U.S. launch of the TikTok Shop in 2023, attracting 47 million shoppers to the platform who spend on average $32 million every day, according to Capital One Shopping.
TikTok added an estimated 11.9 million U.S. buyers in 2024 compared to 3.9 million for Instagram, 2.6 million for Facebook, and 1.1 million for Pinterest, according to eMarketer.
“While Amazon is the No. 1 destination for searching for products, it remains a channel that is most suited to planned and specific purchases,” Neil Saunders, GlobalData managing director and RetailWire BrainTrust member, told CBS MoneyWatch. “It has certainly made some inroads into becoming a place for consumer entertainment and discovery, which led to impulse purchases, but this is very much the preserve of TikTok and TikTok Shop. This more impulse driven part of the market is faster growing [than] more established e-commerce channels.”
Ronald Josey at Citi reiterated his “Buy” recommendation following the speculation in part due to TikTok’s potential to expand Amazon’s advertising business, according to TipRanks.
eMarketer likewise said that beyond enhancing the product discovery phase, TikTok could boost on-site ad inventory and access to first-party data to provide another leg of growth to Amazon’s retail media business. eMarketer wrote, “If Amazon could keep TikTok’s most engaging elements while avoiding ad overload or clunky integrations, it stands a better chance of success than with Inspire.”
Discussion Questions
Does it make sense for Amazon to acquire TikTok?
Do you see the potential acquisition as more important for its commerce or retail media business?
Poll
Loading …BrainTrust
Lisa Goller
B2B Content Strategist
Jeff Sward
Founding Partner, Merchandising Metrics
Gene Detroyer
Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.
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Amazon is most suited to planned and specific purchases. It has dabbled in entertainment like livestreaming, but this remains a very niche part of the business. TikTok, by contrast, is an entertainment engine and a place of brand and product discovery.
Combining TikTok content and its role in areas like livestreaming with Amazon’s superior fulfilment capability and its advantages of an extensive assortment would strengthen both companies.
Amazon is about power and control, including – if not, in fact especially – of information. It would be shocking if they didn’t make an offer
Acquiring TikTok could provide Amazon with a powerful platform for expanding its advertising and e-commerce capabilities. With TikTok’s vast user base and engaging video content, Amazon could tap into new markets and enhance its reach among younger demographics.
Additionally, integrating TikTok’s social commerce features could drive more direct sales through Amazon, creating a seamless shopping experience for users.
While both aspects are significant, the synergy between TikTok’s vibrant video content and Amazon’s e-commerce capabilities could revolutionize online shopping experiences. TikTok’s engaging platform can drive traffic and interest in Amazon’s product listings, making it easier for users to discover and purchase items.
This integration could lead to innovative social shopping experiences, blending entertainment with commerce in a way that enhances consumer engagement and conversion rates.
Amazon is definitely smart to be looking to expanding its product reach, advertising and e-commerce business. It is also the reason why Walmart is also interested in TikTok. So much potential for any operator that wants to purchase it.
It makes sense for Amazon to acquire TikTok to catapult Western markets into social commerce. Amazon already has the commerce part locked down. By gaining access to digital social communities, Amazon would amplify trends, drive more impulse purchases and grab more share.
Acquiring TikTok could help Amazon accelerate conversions among communities (like localized sports fans, global beauty enthusiasts) with captivating content and related merchandise. This move would streamline the path to purchase, letting shoppers see, like and 1-Click Buy in seconds.
Amazon acquiring TikTok sounds like a head slapping “Oh , hell yes!” moment. Two words…retail + entertainment. And digital to boot. How could Amazon not jump in…with both feet…??? Amazon’s biggest challenge would be to not over manage it. There’s gotta be something about the organic nature of TikTok that makes it so appealing. You could almost say it has a “treasure hunt” appeal to it. You never know what you might run across. I’m not sure it’s a positive to see Amazon’s grip of the digital world grow, but I can certainly see why they would want to try. Not many TikTok’s out there.
Amazon making a bid for TikTok is a strategic move that would instantly expand Amazon’s influence among younger consumers and allow the company to tap into TikTok’s massive, highly engaged user base of 170 million in the U.S.
TikTok’s strength in driving social commerce—outpacing rivals like Instagram and Facebook in attracting shoppers—could supercharge Amazon’s ability to compete in impulse-driven, discovery-oriented shopping, an area where TikTok excels and Amazon’s own efforts, like Inspire, fell short.
Acquiring TikTok also stands to significantly boost Amazon’s retail media business by enhancing product discovery, growing on-site ad inventory, and unlocking valuable first-party data. If Amazon leverages TikTok’s strengths without overloading users with ads or clumsy integrations, this acquisition could provide a crucial new pathway for growth in commerce and media alike.
The entire TikTok adventure is pure theatre. The owner of TikTok, ByteDance, is a privately held company, and its ownership is a complex mix of global investors, founders, and employees.
The TikTok algorithm is at least a generation ahead of other social media platforms. Over a billion users use it daily around the world. Less than 10% of users are in the U.S. The idea that it is a security threat is laughable. China is much more sophisticated than relying on TikTok for spying. I don’t think TikTok can provide any value to the Chinese government that it doesn’t already have access to.
As for Amazon, it makes perfect sense. Social media is one area where Amazon does not dominate. TikTok is just a piece of a much bigger puzzle for them. Caution to whoever buys TikTok: it would likely take moments for a Chinese company, like ByteDance or another, to introduce a platform even more advanced than TikTok.
I’m not surprised Amazon is eyeing TikTok. The platform has reshaped how people shop, blending entertainment with influencer marketing to drive impulse sales – something Amazon hasn’t fully tapped into yet. TikTok’s influence on younger audiences is undeniable, and it makes sense why Amazon would want to bring that power into its ecosystem. If Amazon acquires TikTok, the key will be maintaining the platform’s unique user experience without overwhelming it with ads.
As I typically do, I would counsel Amazon to “beware the intricacy” that comes with a potential strategic investment in TikTok.
It’s indeed tempting to acquire such huge visitor traffic and engagement at a moment when TikTok is under government pressure. But real synergies may be difficult to actualize.
Might Amazon weave its Amazon Ads platform into the TikTok matrix? Possibly, but at the risk of altering its freewheeling maker culture.
Might TikTok user content be integrated into the Amazon shopping experience? Short user videos and livestreams might work, but viewing them might add time and distraction for shoppers. Would it boost sales? Hard to know before the fact.
Perhaps deep-pocketed Amazon can continue to manage TikTok as a successful but separate entity. If the purchase price is favorable in the present moment, the play would be to increase its market value.