Is Amazon Aiming to Buy TikTok?

A Social Commerce Newsletter

Author

Nicole Rechtszaid
October 03, 2024

I’m sure you’ve heard the news. TikTok was in court last month trying to defend themselves to survive in the U.S., making everyone speculate as to what happens if TikTok shuts down.

As the founder of an agency that was one of TikTok Shop’s first agency partners, my clients, partners, and the press keep asking me for the inside scoop on whether or not it will happen. My honest thoughts will be shared here on this, but first, let’s dive into the latest gossip about who might buy TikTok.

The juiciest rumor mill theory circulating through the press is that Amazon is angling to buy TikTok (Forbes). And oh my, what a move that would be.

But what calls for this suspicion?

One of the primary drivers of this is the recently announced news of a TikTok/Amazon partnership in the shopping space. The goal is to allow consumers to buy directly from Amazon ads in-app on TikTok.

So, would this mean that TikTok Shop would become Amazon?

Would Amazon have a tab within the mobile app to include TikTok-like content?

(P.S. they already tried this and it’s lame)

The bigger question is: would the government even allow something like this to happen?

I spoke with Rebecca Rechtszaid, lawyer for creative companies and creators, and got her take on this.

“The idea behind antitrust regulation is to ensure that no single company consolidates enough market power to control an entire industry on its own. Because Amazon and TikTok are each behemoths in the ecommerce and digital advertising spaces, any attempt by Amazon to purchase TikTok would raise alarm bells among antitrust regulators and trigger an antitrust investigation. Ultimately, it’s unlikely that such an acquisition would pass muster, and Bytedance would need to find a different buyer with a slightly smaller footprint in the relevant industries.”

So, turns out it might be a bust. But a fun thought experiment, regardless.

But now, what you really want to know: do I think TikTok Shop will get shut down? Scroll to the predictions section below to find out.

News 📰

Ready for this week’s social commerce news? Grab a cup of coffee, tea, or a shot, and dive in.

TikTok Shop

  • Over a third of Gen Z and millennial shoppers are listing TikTok Shop as their top shopping resource, making retailers consider a new approach this holiday season (Lightspeed)

Twitch 👾

  • Twitch has introduced a new path to partnership, now counting raids in the average view count to help with the challenge of discoverability (TubeFilter)

  • VTuber Ironmouse breaks the Twitch subscriber record, beating out Kai Cenat, with 320,000 active subscribers (PC Gamer)

Meta 🌐

  • The new Meta smartglasses are facing criticism for doxxing and harassment potential due to a feature allowing the glasses to retrieve personal details of someone by simply looking at them (San)

  • Meta is releasing three new creator monetization programs for Facebook creators (Yahoo)

YouTube 🎧

  • YouTube is launching a new 3 minute-long Shorts feature, making them more immersive (YouTube)

  • YouTube borrows CapCut and TikTok idea to release a remix and template feature (YouTube)

Underconsumption Core

Have you heard about #underconsumption trending on TikTok? Here’s the breakdown.

Instagram and TikTok influencers tend to have a rather luxurious aesthetic. They often as sent lavish PR boxes, owning and displaying all the latest and greatest product releases from it-girl brands.

A growing opposition, however, has started to shame the concept of overconsumption, claiming that influencer content encourages people to spend more money and buy more goods that just increase environmental harm.

The resistance to this is a crowd that touts underconsumption, posting videos of the few products that they own and finish before buying new things.

But is this really underconsumption core? Or is this a sign of recession core?

The last major recession lacked the mass involvement of nano- and micro-influencers who all can voice their opinions online. These smaller influencers often aim to grow into a larger audience and, thus, seek to justify why they aren’t there yet.

Is that what birthed the underconsumption trend? Or is it a genuine concern for the environment and financial mindfulness?

Email me your thoughts if you [email protected].

Should brands fear the ‘underconsumption core’ trend, or lean into it?

Emphasizing durability and versatility over fast-fashion may strike a chord with those buying less.

www.retailbrew.com/stories/2024/10/02/should-brands-fear-the-underconsumption-core-trend-or-lean-into-it

Predictions 🔮

Ah, yes, you finally made it to the most riveting part of this newsletter.

Do I think TikTok will be banned? The answer may shock you.

From where we stand right now, my prediction comes from simply consuming news and reviewing the hearings.

I predict there is a 70% chance that TikTok will need to sell to stay in the U.S.. I also predict there is a 55% chance that TikTok will simply agree to be removed from the U.S. if it gets to that point.

Shocked? Me too. But this is why I encourage all clients to diversify their platforms. Staying tied to one on rented land is a dangerous game.

About Me

Hi, I’m Nicole! I’m a Gen Z social commerce entrepreneur and TikTok creator. I’m the Co-Founder of Ghost Agency, a social commerce company that supports brands and influencers with content and livestreams. Ghost Agency is one of the first TikTok Shop Partner agencies and we’ve been mentioned in The Information and Business Insider.

Thanks for reading my newsletter. If you’d like to connect with me, you may do so via email or LinkedIn. Feel free to reach out if you have any requested topics, general inquiries, or Ghost Agency questions.