Amazon and TikTok have entered into a strategic partnership as the deadline approaches for TikTok to either be sold to an American company or face a nationwide ban. This move is seen as a way to strengthen TikTok’s position and make it harder for the app to be shut down in the U.S. Some believe that Amazon could potentially be a buyer for TikTok, while others see this partnership as a way for both companies to tap into each other’s strengths and benefit from the growing social e-commerce trend.
The legal battle between the U.S. government and TikTok is heating up, with oral arguments scheduled to begin soon. President Joe Biden signed a law in April requiring TikTok’s Chinese parent company to divest its U.S. operations or face a shutdown. TikTok and ByteDance have filed lawsuits challenging this law, and with only four months left to find a buyer, the future of the app in the U.S. remains uncertain. TikTok has been making strategic moves to solidify its presence in the U.S., including promoting its sister app CapCut and expanding TikTok Shop, while also partnering with Amazon to enable in-app shopping on the platform.
Despite being competitors in the e-commerce space, Amazon and TikTok have found ways to work together. Amazon has become the third largest advertiser on TikTok in the U.S., behind Google and Walmart, and has several advertising accounts on the platform. The companies have collaborated on initiatives like Amazon Inspire and TikTok Shop to tap into each other’s customer bases and leverage their respective strengths. Amazon’s spokesperson emphasized that the company advertises on TikTok like any other retailer, but the partnership between the two companies goes beyond traditional advertising.
The relationship between Amazon and TikTok is managed by a team within TikTok known as “Team Amazon,” which includes employees who previously worked at Amazon. This team is led by executive Khartoon Weiss and reports to TikTok’s global business solutions president Blake Chandlee. Many of the personnel involved in building TikTok’s Amazon business have experience working at Amazon, including the Global Head of Amazon and the Head of Product Marketing for TikTok Shop. This collaboration has been described as a smart move by industry experts, but it could also create dependency issues for Amazon in the future.
There is speculation that Amazon could potentially acquire TikTok in the future, especially if ByteDance agrees to spin off TikTok’s U.S. entity. The partnership between the two companies could be a stepping stone towards a potential merger, with Amazon benefiting from TikTok’s Gen Z audience and engagement, and TikTok gaining access to Amazon’s e-commerce and logistics capabilities. While the value of this partnership to TikTok is clear in terms of revenue and customer data, it remains to be seen how it will impact Amazon in the long run. This collaboration could create a codependency between the two companies, with Amazon relying heavily on TikTok for customer acquisition.
