Scholars and industry analysts often frame Amazon as a prime example of a successful digital ecosystem driver, as it was pivotal in the shift from traditional business models, and it did well by creating a valuable experience for customers through its data-driven platform (Weill, P., & Woerner, S. L., 2015). This made me wonder, is Amazon as unchallenged as it seems, or are there newer disruptions it should be watchful of?
In the last year, TikTok Shop has grown in Europe, opening in Germany, France, Italy, Spain, and Ireland after making billions of dollars in sales in Southeast Asia and the US. According to the Washington Post, TikTok drove around $14.7 billion in revenue in 2023 for just small-business owners (Lorenz, 2024). While the Netherlands does not yet have a dedicated TikTok Shop, the market is growing rapidly across Europe and is thought to have more than 72 million potential customers (Arjan, 2025).
TikTok’s model, unlike other social shopping experiences, keeps buyers in its app. Products are discovered directly in the feed, as TikTok uses its algorithm to suggest products, often through users’ favorite creators, rather than through a traditional search (Melgarejo-Espinoza et al., 2025). Thus, it shows users personalized advertisements based on their engagement habits, not just shopping habits. This makes shopping on TikTok Shop feel like a natural part of entertainment instead of a separate shopping activity. In this way, TikTok changes how people expect to interact with e-commerce, showing how a platform with strong consumer relationships, originally outside of the retail industry, can provide competitive services and put pressure on well-established retail ecosystems like Amazon. It seems then that even secure market leaders like Amazon must continuously assess digital threats.
From your point of view, do you think TikTok’s e-commerce is a passing trend, or could it potentially disrupt Amazon’s dominance in Europe?
References:
Arjan. (2025, March 31). 72 million Europeans gain access to TikTok Shop. E-commerce News.
https://ecommercenews.eu/72-million-europeans-gain-access-to-tiktok-shop/
Lorenz, T. (2024, March 13).“TikTok Claims Its Contribution to the Economy Is Huge.” The
Washington Post. www.washingtonpost.com/technology/2024/03/13/tik-tok-economic-impact-report/.
Melgarejo-Espinoza, R., Gonzales-Cruz, M., Chavez-Perez, J., & Iparraguirre-Villanueva, O.
(2025). Impact of the TikTok algorithm on the effectiveness of marketing strategies: A
study of consumer behavior and content preferences. International Journal of Advanced Computer Science and Applications, 16(2). https://doi.org/10.14569/ijacsa.2025.0160215
Weill, P., & Woerner, S. L. 2015. Thriving in an increasingly digital ecosystem. MIT Sloan
Management Review, 56(4), 27.
TikTok Shop vs. Amazon: How TikTok Shop is Changing E-Commerce
12
September
2025
Great Article Jill it really made me think,
The way that Tiktok Shop operates is definitely an entirely new business model and I would be lying if I said that it wasn’t a bit scary that they have seemingly achieved a perfect blend between entertainment and actual purchases. While I am personally unfamiliar with Tiktok shop (and the platform as a whole), I do think that whether or not Tiktok Shop overtakes Amazon depends largely on that which is sold on it, and why people use the platforms. Because Tiktok Shop is so hyper specific, I believe that it fundamentally shows you other things than what you would buy on Amazon. You can use Amazon to buy many things in bulk (like deodorant, snacks etc.) and these tend to be consumer staples, also think about other more staple items like a Sharpie Marker.
In this same vein I also would have to wonder how book publishers would react to Tiktok Shop? The book publishers of course have it extremely easy now with selling physical books and e-books through Amazon. With Amazon even having the whole Kindle app especially for that. Considering that Amazon started off by selling books, I think that it will still remain a strong point of theirs. This along with the brand name that they have made for themselves, and just the convenience that Prime offers. Amazon will also probably stick in the public’s mind a lot more because of Prime Video where their original shows are keeping them relevant and drawing in large numbers of people (have you seen the hysteria surrounding The Summer I Turned Pretty?)
So with that in mind, I think that the two will exist alongside each other, rather than compete head on. However, coming from Suriname, I believe that Tiktok shop could potentially gain a market share in areas of the world where Amazon is not available or at the very least is a lot less dominant like South America.
Very true! Thanks for your insights and feedback. I agree that it will all depend on the market position and strategic position these 2 will take. Latin American countries also use different apps, and Suriname for example definitely uses Tiktok a lot, so they could really capitalize there by entering first.
A lot of stores also have sections now with “Tiktok reads” so It is a very trending category. I feel like users seeing other users reviewing books or analysis on the plot and them directly being able to purchase it in app will lead to a huge advantage for TiktokShop.
Hey Jill!
While reading your post, I was thinking about how I use Instagram Reels and Stories, since I don’t have TikTok. However, I can imagine that the experience might be pretty similar. I fully agree with you that the big advantage of this TikTok feature is that it allows users (potential shoppers) to purchase items directly within the app. This approach makes it much easier to splurge on a small item being promoted in a commercial or video. As I mentioned, I use Instagram, and one of the things that usually stops me from impulse buying directly from an ad is that I am always redirected to an external website or store where I have to do the whole process of providing my personal information and payment method. If, however, they implemented the solution within Instagram to allow me to buy immediately from their app with one simple click, I would be far more inclined to buy on impulse.
This sounds very convenient for me as a user and profitable for Instagram, but I also see the potential risk for younger users or those with less self-control to buy things they don’t need just because they’re presented well and the buying process is so seamless.
Your post made me think about this, as well as reflecting on my own usage of social media and online shopping!