Amazon vs. TikTok: The Battle for Social Shopping Supremacy with Influencers at the Frontline

Amazon.com Inc. AMZN is bolstering its social commerce capabilities, courting influencers to craft numerous videos for its shopping platform. 

However, its compensation offer trails behind market rates, igniting an array of reactions online.

In a recent outreach, Amazon invited several influencers to produce videos highlighting multiple products. 

As per screenshots of this correspondence surfacing online, the company offers up to $12,500 to individual creators for 500 videos that align with Amazon's specifications, Bloomberg reports.

Also Read: The E-Commerce Duel: Walmart+ Rising as Amazon Prime's Rival: Report

Social media played a crucial role in driving Amazon's Prime Day numbers. Walmart Inc WMT and Alibaba Group Holding Limited BABA also courted influencers to boost sales.

In 2022, the e-commerce leader launched Inspire, an immersive platform reminiscent of TikTok, tailored to display photos and videos that align with consumer preferences. 

A distinct feature of Inspire is the ability for users to buy featured products from Amazon instantly. 

This innovative shopping feed mirrors users' serendipitous product discovery experience on various social media platforms, veering away from the traditional search-and-find method.

Historically, Amazon primarily leveraged unpaid customer reviews as a magnet for shoppers. Gradually, it began to infuse more advertisements, closely mirroring Alphabet Inc GOOG GOOGL Google search result promotions.

A continuous influx of innovative videos is imperative for Amazon's social commerce vision to thrive. 

This initiative coincides with TikTok's surge in e-commerce capabilities across pivotal markets like the U.S. and the U.K. With an anticipated $20 billion in platform-based merchandise sales this year, the ByteDance Ltd.-owned application is aggressively fortifying its retail wing.

Amazon's hurdle is crafting content rivaling TikTok's established expertise. The modest $25 video remuneration might not cut it. Yet, there's potential for additional earnings via sales commissions stemming from these videos, insiders divulged.

An industry consultancy, Brands Meet Creators, states that for the content Amazon seeks, influencers generally command around $212. Jazmine Flores, a celebrated beauty influencer, shared that she usually invoices $300 per content piece. 

Price Action: AMZN shares traded lower by 1.55% at $131.90 premarket on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.