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Charleston, SC January 21, 2024
Small and medium-sized Amazon brands heavily reliant on TikTok for marketing could face significant revenue losses if a U.S. ban becomes permanent, according to research by ecommerce marketing platform Omnisend.
Omnisend’s analysis of Amazon’s 600 top-selling products of 2024 found that items like Bio-Collagen Real Deep Mask by BIODANCE (featured in 15.7K TikTok videos), Triple Driver In-Ear Earphones by 1More (11.7K TikTok videos) and Total Interior Cleaner and Protector by Chemical Guys (66.2K TikTok videos) are heavily promoted on TikTok and likely owe their success largely to TikTok influencers.
TikTok restored service to users in the United States on Sunday just hours after the popular video-sharing platform went dark in response to a federal ban.
“Potential TikTok ban will affect users, but it will affect seven million small businesses in the US much more. This should be a warning shot across the bow to brands that relying on third-party channels to grow their business leaves them vulnerable. While social channels can be beneficial, brands should put a renewed emphasis on growing high-ROI first-party channels, like email and SMS marketing,” says Greg Zakowicz, ecommerce marketing expert at Omnisend.
“First-party channels aren’t susceptible to government intervention or algorithm changes like social and SEO, making them important channels to increase sales.”
The study from Omnisend showed that most of Amazon best selling brands that use TikTok to promote their products come from big and well known companies.
While big brands using TikTok can adapt, smaller businesses risk severe losses as TikTok is often their primary marketing channel. Zakowicz advises businesses to diversify marketing efforts now rather than wait.
“I would suggest businesses that depend on TikTok take steps toward possible solutions, instead of watching and waiting for what happens,” says Greg Zakowicz. “Businesses should concentrate on growing other marketing channels and getting ready for the worst-case scenario.”
The safe option, in his opinion, is trying out more reliable marketing channels such as email and SMS marketing. These channels have shown to be consistently effective for nearly two decades, now bringing businesses $68 for every dollar spent. Platforms like Omnisend help to make email marketing easy and automatic.
“Another step that many brands will likely take is switching their ad dollars from TikTok to platforms like Meta and YouTube. However, an underdog platform to keep an eye on is Snapchat. Snapchat is similar to TikTok in that it is very much liked by Gen Z and emphasizes authentic, fresh content,” says Greg Zakowicz.
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