Ayesha KhanLaunching an online store as a new seller can be both exciting and challenging. One of the most important decisions you’ll make is choosing the right platform to showcase and sell your products.
When it comes to e-commerce, Amazon is usually the first name that comes to mind. With over 300 million active users worldwide and $650 billion in annual revenue, Amazon dominates the e-commerce market. However, there is another contender in the market, TikTok Shop. The platform garnered around 47.2 million social media shoppers in 2024, marking a 34.2% increase from 2023. Projections show this number will grow steadily, reaching 55.6 million by 2027.
Which platform could be the best launching pad for you between TikTok Shop vs Amazon as a new seller, is the topic of today’s discussion. In this article, we provide a comprehensive comparison of TikTok Shop and Amazon to help new sellers like you to understand their unique features, advantages, and challenges, and empower you to select the platform that aligns best with your business goals.
Let’s begin by having a brief overview of both the platforms.
TikTok Shop vs Amazon: Platform Overview
TikTok Shop is a recently launched discovery- based, social commerce platform that integrates e-commerce directly into the TikTok app. The platform allows users to buy products seamlessly through short videos, live streams, and the shopping tab.
With its dynamic nature, it thrives on engaging content that makes it ideal for visually appealing products and brands targeting younger audiences like Gen-Z and millennials. With the integration of shopping features within the app, online purchasing has now become incredibly easy and impulsive.
Launched in 1995, Amazon is one of the most well-established e-commerce markets with a vast global customer base. It offers robust infrastructure, including fulfillment services (FBA), extensive advertising tools, and a trusted shopping experience. In contrast to TikTok Shop, Amazon’s platform is optimized for search-driven shopping, catering to a wide range of product categories and demographics.
Market Size
The market size of an eCommerce platform shows how much money people spend on it. Gross Merchandise Value (GMV) is the key determinant to calculate market size. These figures help us understand how big, popular, and successful the platform is.
In 2024, the global GMV of TikTok Shop reached approximately $32.6 billion with around $9 billion contribution from the U.S market. This rapid growth highlights TikTok Shop’s increasing influence in the e-commerce landscape.
On the other hand, the net sales of Amazon in 2024 totaled $ 628 billion, with North America accounting for $387.5 billion.
Though the net sales of TikTok Shop were good, in comparison with Amazon, it is quite less. This solidifies Amazon’s position as a dominant force in the e-commerce sector, offering a vast selection of products and services to a global audience
Growth & Opportunity
How fast an ecommerce platform is getting bigger in terms of more people buying, more sellers joining and more products being sold, determines its growth. And opportunity means the potential of the success for new sellers by reaching more customers, finding trending items, getting product category approvals, and start selling on TikTok Shop
TikTok Shop experienced a significant growth in a short period which indicates the rapid adoption and potential for new sellers to tap into emerging markets. The platform’s integration of social media and e-commerce creates unique opportunities for viral marketing and rapid sales growth.
However, Amazon maintains a steady growth rate of 11% annually which reflects it is a mature market with consistent demand. While growth is more stable, the platform offers reliability and a vast customer base for sellers.
Buyer Behavior & Shopping Experience
While choosing the best ecommerce platform to showcase your brand or products, it’s important to understand the buyer behaviour especially when it comes to social commerce platforms like TikTok Shop.
TikTok Shop caters to impulse buying through engaging, short-form videos and live streams. Users often discover products organically while browsing content. It often leads to spontaneous purchases influenced by trends and influencer recommendations.
On the flip side, Amazon primarily serves intent-driven purchasing. Users search for specific products with the intent to buy. The platform’s search functionality and customer reviews support informed purchasing decisions.
Understanding buyer behavior helps you tailor marketing strategies and product offerings to align with platform-specific shopping habits.
Selling Costs (Platform Fees)
Selling costs play a major role in deciding which platform could be the best option for you as a new seller.
TikTok Shop’s commission fee is approximately 8%, though certain product categories may have different rates. Moreover, the platform does not rely too much on paid advertising. With lower reliance on paid advertising, this cost-effective structure is advantageous for new sellers looking to maximize profits.
Considering Amazon, Amazon’s advertised referral fees are about 15%, but when you add costs like advertising, storage, and shipping, the total fees can go up to 25–35%. These extra costs can reduce your profits, which can be tough for new sellers.
Marketing & Advertising Costs
As a new seller, the strategic allocation of funds for marketing and advertising is necessary to maintain profits and growth.
TikTok Shop offers low-cost advertising options. Sellers often collaborate with TikTok influencers to promote their products and pay 10–30% affiliate commissions on each sale. TikTok influencer marketing leverages organic reach and user-generated content to drive sales.
In contrast, Amazon charges higher advertising costs with 10–15% of revenue typically allocated to ads. Programs like “Vine” require giving away products, and there are additional return and disposal costs. These expenses can add up and affect overall profitability.
Setup Process
The setup process varies by platform, with some requiring more steps and learning.
This can affect how quickly sellers are able to get started.
TikTok Shop is easy and fast to set up, ideal for trend-driven brands. Sellers can apply through the TikTok Seller Center and start selling once approved. The platform’s user-friendly interface simplifies the onboarding process.
Amazon involves more steps, including creating a Professional Seller Account, brand registry, and understanding FBA logistics. While more complex, Amazon FBA provides extensive resources and support for beginners.
An easy setup process is crucial for new sellers as it saves time, reduces frustration, and helps them start selling faster. It makes TikTok Shop a preferred choice.
Product Listings
Product listings are a key part of any online store because they help customers understand your products and decide to buy.
TikTok Shop relies on creative, engaging videos with hashtags and captions to showcase products. This format encourages storytelling and visual appeal, which can drive higher engagement and sales.
Optimized through Amazon SEO, A+ Content, and keyword-rich descriptions, supported by various listing optimization tools, Amazon focuses on detailed product information and searchability.
TikTok Shop can be an ideal platform to check demand and build brand awareness in less time.
Inventory Management
Effective inventory management is crucial for new sellers. It helps avoid stock outs or overstocking and ensures smooth operations and satisfied customers.
In the TikTok Shop, sellers handle inventory management and often need to restock quickly for trending products. This hands-on approach necessitates efficient logistics and supply chain management.
On the other hand, Amazon offers structured inventory management via FBA. The platform provides storage, shipping, and returns handling. This service streamlines operations and allows sellers to focus on other aspects of their business.
Comparison Table
Here is quick comparison table of TikTok Shop vs Amazon
|
Feature |
TikTok Shop |
Amazon |
Winner |
|---|---|---|---|
|
Market Size |
$32.6B GMV (2024) |
$628B net sales (2024) |
Amazon |
|
Growth Rate |
significant (2022–2024) |
7–10% annually |
TikTok Shop |
|
Fees |
~8% |
25–35% (realistic) |
TikTok Shop |
|
Fulfillment |
Manual / 3PL |
Amazon FBA |
Amazon |
|
Audience Demographics |
Gen Z, Millennials |
All age groups |
Depends |
|
Discoverability |
Algorithm-based virality |
Search-driven |
Depends |
Tips for Beginners
- For TikTok: Start by giving free samples to micro-influencers to generate authentic content and reviews. Consistent posting and engaging storytelling can enhance visibility and drive sales.
- For Amazon: Use the FBA Revenue Calculator before listing your product to understand potential profits and costs. Optimizing product listings with high-quality images and detailed descriptions can improve search rankings and conversions.
Implementing these tips can provide a competitive edge and enhance the chances of success on each platform.
Hybrid Selling Strategy (TikTok + Amazon)
Using both TikTok Shop and Amazon together can be a smart way to expand your reach and improve your selling process.
Leveraging TikTok’s Virality
TikTok’s viral nature allows you to showcase your products to a large, engaged audience quickly, creating buzz and driving interest.
Benefits of Amazon FBA
Amazon’s Fulfillment by Amazon (FBA) service offers reliable storage, shipping, and customer service, which takes a lot of the logistical burden off your shoulders.
For example, your product becomes popular through a TikTok video or influencer collaboration. You can then direct those interested shoppers to your Amazon store. At Amazon, they will benefit from the platform’s trusted delivery and return policies and shop confidently. This way, you combine the best of both worlds, TikTok’s ability to create demand and Amazon’s efficient order fulfillment.
Tools to Bridge Both Platforms
To make this work effectively, sellers can use tools like landing page links, TikTok pixel tracking to monitor customer behavior, and influencer partnerships to drive traffic from TikTok directly to Amazon.
Why does this Approach work?
This approach not only broadens your sales channels but also builds stronger brand visibility and trust with customers by meeting them where they are and providing a seamless shopping experience.
Overall, a hybrid selling strategy lets you diversify your business, reduce risk, and tap into the strengths of two powerful platforms, helping you grow your brand more quickly and efficiently.
Looking for more than just help? As a leading TikTok Shop agency, Tiksly delivers explosive growth through viral content, strategic advertising, and relentless optimization — turning your shop into a top seller.
Conclusion
When it comes to choosing between TikTok Shop vs Amazon, there are several points that should be kept in mind. For example, if your brand is trendy, targets a younger audience, and thrives on creative, engaging content, TikTok Shop is a great choice. On the other hand, Amazon offers reliability, access to a vast customer base, advanced infrastructure, and strong potential for long-term growth.
For many sellers, the best approach is to use both platforms strategically where they leverage TikTok’s dynamic reach to build awareness and Amazon’s robust fulfillment system to handle sales efficiently. This way, you can connect with different types of customers and grow your brand across multiple channels.
Still have questions? Contact our team by filling out this quick form.
Let’s grow your brand together.
