By 2025, the US e-commerce landscape will experience a revolutionary change of paradigm. The traditional retail behemoths such as Amazon are being upended by newer, content-driven platforms such as TikTok. Mobile-first shopping has ushered in a new era of reorienting consumer cultures towards social experiences that dissolve the lines between entertainment and e-commerce.
Two leaders are commanding focus: TikTok Shop, the newer player driven by algorithm-based discovery and creator-driven promotions, and Amazon, the established powerhouse of online commerce known for logistical prowess and vast inventory. Here, we contrast to uncover where U.S. consumers are, in fact, spending their 2025 money—and what this means for business targeting TikTok for business-to-business marketing.
1. What is TikTok Shop and Amazon
TikTok Shop
TikTok Shop is TikTok's in-app commerce solution, allowing users to discover, purchase, and pay for products within the app. Integrated into livestreams, short-form videos, and creator storefronts, TikTok Shop is social commerce in action—a fusion of entertainment and retail driven by influencers, trends, and viral content.By working through a TikTok agency or TikTok shop agency, brands can partner with creators to create native content that is extremely engaging to niche audiences. The emphasis is less on sales pitches and more on storytelling, community, and FOMO-fueled discovery.
Amazon
Amazon is still the standard for convenience and scale. With same-day shipping in most cities, fair prices, and the largest selection of products, it's still the standard of the transactional nature of e-commerce. TikTok is not content-oriented, but neither is Amazon, although it's a utility site where product reviews, Prime rewards, and streamlined checkout processes foster conversions.
While Amazon has dabbled in live shopping and influencer storefronts, it has yet to fully emulate the content engagement model that drives TikTok.
2. 2025 Consumer Spending Habits
Statistical Insights
Q1 and Q2 2025 current market data show a fascinating trend:TikTok Shop U.S. revenue grew 128% year-over-year to $12.5 billion through April 2025.
Amazon U.S. e-commerce retail sales rose 7% in the same period, over $150 billion, though its growth is decelerating, especially for Gen Z and Millennial consumers.
TikTok Shop conversion rate (3.2%) is ahead of Amazon's (2.6%) for impulse-buy segments such as beauty, wellness, and gadgets.
Demographic Preferences
TikTok Shop dominates the younger tiers:- Gen Z (18–25-year-olds): 68% purchased products directly from TikTok Shop in the past 3 months.
- Millennials (26–40 years): 42% use TikTok Shop regularly, especially for skincare and lifestyle categories.
- Gen X and Boomers: Still remain loyal to Amazon due to familiarity, trust, and greater availability of products.
In contrast, however, Amazon is still where you go for home goods, books, and electronics by every demographic.
3. Determinants of Consumer Decisions
User Experience
TikTok Shop is native to the TikTok environment, so consumers aren't jumping between apps or learning new interfaces. Something you've seen in a video can be purchased in three taps.Amazon is a utilitarian experience. It's meant to mass buy and compare but lacks the immersive discovery-based design of TikTok.
Product Discovery
TikTok’s algorithm is a strong discovery engine. Products become viral overnight based on one creator video, and users are more likely to find new brands through the "For You" page. A TikTok shop agency can leverage this discovery by matching campaigns with trending sounds and trends.Amazon is more search behavior and paid listing influenced, so the user has to already be in shopping mode. The recommendation algorithm is robust but less surprise-based than TikTok's.
Trust and Safety
Amazon has gained the trust of people through safe payment, Prime assurances, and effortless returns. Consumers are safe even when experimenting with new vendors.TikTok Shop is gaining ground. TikTok introduced new return policies and escrow procedures in 2024, but consumer trust has yet to be built. Agencies marketing TikTok business now often remind users of security and reliability to cut down on purchasing hesitation.
4. Impact on American Businesses
Marketing Strategies
Companies now need to implement platform-specific marketing strategies:TikTok business marketing involves storytelling, producing short-form videos, influencer promotion, and real-time interactive engagement through live shopping.
Amazon marketing relies on SEO, PPC advertising, A+ content, and reviews.
An American skincare brand, working with a TikTok agency, saw a 4x return on investment on TikTok Shop compared to Amazon because they experienced greater engagement and virality. They used a format of micro-influencer mobilization and live single-product drops.
Sales Performance
Case Study 1 – TikTok Shop Beauty Brand:
GlowDrop Skincare, a direct-to-consumer brand, earned $2 million in 6 months through TikTok Shop's Live feature and creator content. Their TikTok agency managed influencer partnerships and shoppable content, with an emphasis on real-time customer interactions and product demonstrations.Case Study 2 – Amazon Electronics Brand:
TechSure, a tech brand, maintained consistent revenue through Amazon advertising but was unable to grow into new customer segments. With good reviews and fast shipping, they were held back by the lack of "buzz" from growing. Their move into TikTok Shop in 2025 now sees them experimenting with viral unboxing videos and creator tutorials.Want to Max Out Both Platforms?
Whether you're beginning a social commerce venture or creating an Amazon-born brand, diversification is the route to take. Work with The Short Media—a successful TikTok agency assisting U.S. businesses to thrive on TikTok with content-first strategy, TikTok business promotion, and effortless shop integration.
Schedule a free strategy call today:https://theshortmedia.com/
5. Future Outlook
Predictions for E-Commerce
- TikTok Shop is also expected to reach $25 billion in U.S. sales by 2025, driven by Gen Z adoption and improved trust mechanisms.
- Amazon will continue to be the leader in overall volume but could lose category leadership in beauty, wellness, fashion, and impulse categories.
- Experts predict that TikTok can launch AI shopping assistants, in-app lending, and further integration with offline shopping experiences.
Recommendations to Companies
To thrive in 2025:- Adopt TikTok business advertising through the integration of content into the purchasing process.
- Use TikTok shop agency services to develop in-app native content plans.
- Maintain Amazon as its back-end warehouse but move prime-of-funnel discovery to TikTok.
- Utilize analytics to track cross-platform metrics and adjust ad budgets accordingly.