TikTok has exploded in popularity in recent years, becoming one of the most downloaded and frequently used apps globally. The short-form video app allows users to create, share, and discover entertaining 15 to 60 second videos across a wide range of categories. TikTok’s addictive scrolling feed keeps users highly engaged, making it a top platform for influencers, brands, and creators.
Looking to capitalize on TikTok’s momentum and the rise of social commerce, Amazon has plans to launch its own TikTok-like app called Amazon Inspire. According to reports, Amazon is currently testing the new video-focused shopping app among employees. Inspire is expected to let users create and share shoppable video content, while providing an endless feed of product recommendations and deals. This positions Amazon to better compete for the attention of younger audiences and integrate social shopping.
Details About the New Amazon App
In May 2023, Amazon launched a new TikTok-like app called Amazon Inspire that is aimed at directly competing with TikTok [1]. The app is currently only available in the United States on iOS, but Amazon plans to expand it to Android and other countries later this year.
Some of the key features and functionality of Amazon Inspire include:
- Allowing users to upload and share short videos similar to TikTok
- Built-in shopping features so users can discover and purchase products featured in videos
- Influencer marketing tools for creators to more easily monetize their content
- Personalized recommendations based on users’ interests and shopping behavior
- Seamless integration with Amazon’s online store for checkout
The goal is to leverage Amazon’s massive ecommerce business to differentiate Inspire from other social video apps. Over time, more features will likely be added to drive user engagement and shopping through the app.
Motivation Behind the App
Amazon’s motivation behind launching a TikTok-like app stems from wanting to compete more aggressively in the social media space. As reported by Insider Intelligence, “The battle between Amazon and TikTok is heating up” as the two companies position themselves as rivals (Source). TikTok has experienced tremendous growth and popularity among younger demographics, becoming one of the most downloaded apps globally. Amazon likely wants to capitalize on the social shopping trend that TikTok has spearheaded.
Specifically, Amazon is looking to challenge TikTok’s dominance in shoppable video content and social commerce. As noted by the Wall Street Journal, “TikTok is spending heavily to build a logistics operation, poaching Amazon employees and trying to lure third-party sellers” (Source). By launching its own TikTok competitor, Amazon can aim to maintain its competitive edge in ecommerce and social shopping. The internal testing of a TikTok-like feed underscores Amazon’s strategic focus on competing in this increasingly important space.
User Experience
The Amazon Inspire app aims to replicate the addictive short-form video experience that has made TikTok so popular. When users open the app, they will be presented with a continuous feed of shoppable video content. As they swipe through, the algorithm will learn their preferences and serve up more relevant videos.
For consumers, it provides an entertaining and interactive way to discover new products and trends. Similar to TikTok, users can like, comment, and share videos as well as follow their favorite creators. The key difference is everything featured in the videos is available for purchase directly within the app via integrated shopping links.
For creators, Amazon Inspire provides tools to produce short entertaining videos showcasing products. This includes effects, filters, music, and more. Creators can tag products, enabling viewers to shop featured items with a click. According to TechCrunch, Amazon is also planning influencer collaborations and shoppable livestreams to further replicate TikTok’s successful creator monetization models (source).
By merging entertainment and shopping in a mobile-first interface, Amazon hopes to recreate the addictive TikTok experience with the convenience of integrated ecommerce transactions.
Content Moderation
Amazon takes a different approach to content moderation compared to TikTok. As an e-commerce platform, Amazon focuses on removing content like counterfeit goods, inaccurate product information, and inappropriate reviews (Bilotta, 2023). Moderation aims to maintain the integrity of Amazon’s marketplace. There is less emphasis on moderating content for appropriateness, compared to TikTok, a platform built around user-generated content and social networking.
In contrast, TikTok relies heavily on content moderation to uphold community guidelines and prevent the spread of harmful content. TikTok uses a combination of automated systems and human moderators to review posts and remove policy-violating content like hate speech, harassment, and dangerous challenges. The stakes are higher for TikTok to moderate content given the massive volume of videos uploaded and its younger demographic of users. TikTok has faced scrutiny over moderation concerns, especially as it expands e-commerce features (Abrams, 2021).
Monetization
The Amazon TikTok-like app offers creators multiple ways to monetize their content and earn money. Through the Amazon Influencer Program, creators can earn commissions from products they recommend in their videos. To qualify, creators need at least 1,000 followers and 50,000 monthly views. Once approved, creators receive unique links to recommend products and earn commission on resulting sales (Amazon).
Additionally, the app features Amazon Creator Ads which help creators promote their content across social media and earn money from ad views. Creators can use these video ads to drive followers to their channel and build their audience (Amazon). The app also includes tipping, gifting, and subscription options so fans can directly support their favorite creators.
Overall, the Amazon app provides multiple innovative monetization features to reward creators for quality content and engage audiences. The various options give creators flexibility to earn money in ways that suit their channel and community.
Data Privacy
Amazon has stated that user data privacy is a top priority for the new TikTok-like app. While specific details have not been released yet, Amazon’s approach to data privacy on its other platforms provides some insight into how user data may be handled.
On its shopping platforms like Amazon.com, Amazon has outlined its commitment to collecting only the data needed to serve customers and operate Amazon businesses. The company states it provides transparency around its data practices and does not sell data of Amazon customers.
For its voice assistant Alexa, Amazon has created privacy controls for users to manage recordings and delete interactions. Amazon also provides the ability to opt out of having voice recordings used to develop new Alexa features.
On the Amazon TikTok competitor, privacy protections like access controls, data minimization, and transparency will likely be implemented. However, the specifics are still unknown. As with other Amazon products, giving users control over their privacy settings and data sharing options will likely be a key part of the app’s privacy protections.
Competitive Landscape
Other popular short form video apps like Instagram Reels, ByteDance’s TikTok, Triller, and Snapchat present stiff competition for Amazon’s rumored TikTok competitor. However, Amazon may have some differentiating factors that set it apart. Given Amazon’s massive ecommerce business, its TikTok rival could seamlessly blend social video content with shopping and transactions. Allowing creators to tag products in their videos and enable in-app purchasing would provide a much tighter linkage between content and commerce compared to rivals. Additionally, Amazon has the advantage of nearly 200 million Prime members it can market the app to. While details remain scarce, Amazon’s deep pockets, existing infrastructure, and loyal user base give it a strong starting point to take on TikTok.
Sources:
[1] https://www.socialinsider.io/blog/tiktok-competitor-analysis/
[2] https://sensortower.com/blog/tiktok-competitors-market-share-growth
Reception So Far
Early reactions to Amazon’s plans for a TikTok competitor have been mixed. Some analysts see it as a smart move by Amazon to tap into the social shopping phenomenon and engage younger audiences who increasingly discover products on platforms like TikTok [1]. However, others are skeptical about Amazon’s ability to create a authentic social video app that resonates with Gen Z users in the way TikTok does [2].
One of the main challenges predicted for Amazon is generating enough interesting and entertaining organic user-generated video content. Unlike TikTok which benefits from its huge creator ecosystem, Amazon will need to incentivize and compensate influencers and creators to help seed its new platform. There are also questions around how seamlessly Amazon can integrate shopping into the social experience without making it feel too commercialized or promotional.
Impact on Ecommerce
The launch of an Amazon TikTok-like app could have a significant impact on ecommerce. As noted in this article, TikTok has already disrupted Amazon’s dominance in online shopping through the introduction of TikTok Shop. If Amazon replicates TikTok’s successful shopping features, it could further accelerate the growth of social commerce.
Both Amazon and TikTok have tremendous reach among consumers. Combining TikTok’s viral videos and influencer marketing with Amazon’s logistics network and loyal Prime member base could create a formidable ecommerce competitor. Shoppable livestreams, hashtag challenges, and in-app stores on an Amazon TikTok app could make it incredibly easy for viewers to discover and buy products seen in videos.
As reported by Nikkei Asia, TikTok is aiming to become a key ecommerce platform, with the value of products sold through TikTok growing rapidly. An Amazon TikTok app pursuing similar shopping features could accelerate the trend of social media emerging as a critical channel for online retail. This could further disrupt the competitive landscape and force more traditional ecommerce players to find ways to integrate social commerce.
