728 x 90

TikTok is testing a rival to Amazon Prime as it looks to create an e-commerce giant in the US.

TikTok is testing a rival to Amazon Prime as it looks to create an e-commerce giant in the US.

TikTok is taking a page out of Amazon’s playbook. The social video app is testing a Prime-style membership program for some US shoppers, according to screenshots of the offer seen by Business Insider. The program, called TikTok Shop Plus, is integrated into Shop, its e-commerce platform. Like Amazon Prime, it offers its members a mix

TikTok is taking a page out of Amazon’s playbook.

The social video app is testing a Prime-style membership program for some US shoppers, according to screenshots of the offer seen by Business Insider.

The program, called TikTok Shop Plus, is integrated into Shop, its e-commerce platform. Like Amazon Prime, it offers its members a mix of perks like free shipping, product discounts, and coupons.

In one example of the service in action, a hair product that normally sells on TikTok for around $57 was discounted to $47 for Plus members, along with free three-day shipping. In another, Plus members were offered a $5 discount on a beauty product that normally costs around $50.

TikTok is testing the Plus service at various prices, including $6, $10, or $15 a month, according to screenshots seen by Business Insider.

TikTok did not respond to a request for comment.

Introducing a membership program could help TikTok prevent its shoppers from leaving its app to make purchases, a former Shop employee said.

“TikTok, for a long time, saw many of its bottom-of-the-funnel buyers go to Amazon,” the former employee said. People would see an item on TikTok and “run to Amazon to make a purchase,” they added.

“I think TikTok is really trying to squash that and capture as many of those final conversions as possible,” they continued.

Other big U.S. e-commerce players, such as Walmart and Target, have offered similar membership programs designed to build customer loyalty, offering free shipping and special discounts for a fee.

TikTok Shop Plus is the latest in a series of product launches and strategy changes at the ByteDance-founded company that have mirrored the offerings popularized by Amazon. Like Amazon, TikTok offers its own full shipping and fulfillment service to merchants. It has also leaned into shopper-friendly offerings, such as express delivery windows.

The overlap of ideas is not surprising. TikTok hired dozens of Amazon employees to join its team as it prepared to launch in the US in 2023. Current and former TikTok employees previously told Business Insider that their early staff meetings sometimes felt like Amazon alumni gatherings and that the company adopted similar internal practices, such as using narrative notes to share ideas and encourage sole ownership of projects from start to finish.

TikTok’s US e-commerce business, which EMARKETER, a sister company of Business Insider, forecasts could surpass $23 billion in sales this year, remains a small player compared to Amazon, which EMARKETER expects to generate more than $500 billion in US sales in 2026.

TikTok is thinking long-term about how it can further penetrate the U.S. market and build a shopping market that approaches the hundreds of billions of dollars its Chinese sister app, Douyin, generates in annual sales.

“There are now brands that are TikTok-Shop first and make their new launches exclusively on TikTok,” said Kierra Butcher, a TikTok agency partner who works with Shop creators. “TikTok has proven to be a market and the opportunities have continued to grow over time.”