TikTok Changes the Retail Game: How Amazon is Struggling to Compete

TikTok Changes the Retail Game: How Amazon is Struggling to Compete
Photo by Solen Feyissa / Unsplash

The world of retail is constantly changing and Amazon.com Inc. is now feeling the pressure from ByteDance Ltd.’s TikTok, who is quickly becoming a popular platform for shoppers to search and buy products. With young shoppers preferring TikTok’s aesthetic and entertainment, Amazon is struggling to keep up. Last month, they announced their new ‘Inspire’ feed to compete with the app, however, it has not been enough to keep up with the competition.

TikTok is quickly gaining traction with 40% of users being between the ages of 18-24 and another 27% being 13-17. Their ‘For You’ page has established an addictive behavior with users, targeting them with content they are likely to want to see. Furthermore, their ‘authenticity’ has given customers more confidence in the reviews and sponsored content they see, something Amazon reviews are struggling with.

Amazon needs to make bigger changes to their retail business if they want to compete with TikTok. Their flat two-tone site and difficult to navigate app lack the aesthetic and organization to make it easy or interesting to browse. For now, Amazon’s grip over the first step in a shopper’s journey is loosening, and it remains to be seen if Amazon can make the necessary changes to keep up with the competition.

TikTok’s Coming for Amazon’s Search Traffic
Young shoppers want to be entertained, engaged and surprised, things the biggest online e-commerce company is surprisingly bad at.