As the deadline approaches for TikTok to be sold to an American firm or face a ban, the social media giant is strengthening its ties with Amazon, potentially making it harder to shut down TikTok in the U.S. Some speculate that Amazon could be a possible buyer for TikTok, while others believe that Amazon’s partnership with TikTok will make the fight against a ban even stronger, including voices from small businesses and influencers. TikTok has been making strategic moves to deepen its relationship in the U.S. economy, including a partnership with Amazon that allows users to browse and buy Amazon products within the TikTok app.
The legal battle between the U.S. government and TikTok is heating up as oral arguments begin next week. President Joe Biden signed a bill in April requiring TikTok’s parent company ByteDance to divest its U.S. entity or face a shutdown, leading to lawsuits from TikTok and ByteDance. In the midst of this uncertainty, TikTok is doubling down on its presence in the U.S., promoting its sister app CapCut and expanding its TikTok Shop. The partnership with Amazon allows users to easily purchase Amazon products within TikTok, creating a more seamless shopping experience.
Despite being competitors in the e-commerce space, Amazon and TikTok have found benefits in working together. Amazon’s previous attempts at social commerce did not gain traction, while TikTok has faced concerns about the quality of its products. By partnering with TikTok, Amazon gains access to a younger demographic and the virality of the platform, while TikTok benefits from Amazon’s credibility and trust. Amazon has become TikTok’s third largest advertiser in the U.S., further solidifying their relationship.
The deepening relationship between Amazon and TikTok is managed by a team within TikTok known as “Team Amazon,” with employees who previously worked at Amazon. The collaboration between the two companies is seen as a smart move, but could also create issues for Amazon in the future if they become too reliant on TikTok for customer acquisition. As the partnership continues to grow, there is speculation that Amazon could potentially acquire TikTok in the future, merging the two platforms into a social e-commerce powerhouse.
Overall, the TikTok-Amazon partnership is seen as a strategic move for both companies to tap into new audiences and drive revenue through social commerce. The potential for Amazon to acquire TikTok could further solidify their relationship and create a powerful social e-commerce platform. As the legal battle over TikTok’s future continues, the partnership with Amazon could play a key role in shaping the outcome of the situation.
