Amazon’s Biggest Winners & TikTok Shop’s Growing Influence

Hello Omni Talk Fans!

We are back with another edition of 5 Insightful Minutes, and this time I sat down with Scott Needham, Founder and CEO of SmartScout, to talk about how the ecommerce playbook is changing. From Amazon’s biggest brands to TikTok Shop and AI shopping assistants, Scott has some fascinating data on who’s actually winning. Here are my biggest takeaways from our conversation.

The Big Brands Are Getting Bigger on Amazon

I started by asking Scott who actually owns Amazon’s biggest categories. His answer? The big brands are winning. While smaller private-label brands may have had the advantage a decade ago, major brands now have the expertise, advertising budgets, and brand loyalty to dominate. Scott also pointed to Amazon Business, which he says is generating roughly $60 billion annually. Not exactly a small opportunity!

TikTok Shop Is Helping Brands Win Everywhere

Here’s a statistic that caught my attention: roughly 80% of the top TikTok Shop brands SmartScout tracks also sell on Amazon, and their Amazon businesses are growing faster than their peers. As Scott explained, TikTok Shop isn’t just driving purchases on its own platform. Consumers might discover something on TikTok and ultimately buy it on Amazon or in a physical store. That’s a pretty powerful influence on the broader retail landscape.

Amazon Is About Searching. TikTok Is About Discovering.

Scott made an interesting distinction between the two platforms. On Amazon, shoppers generally search for products they already want. On TikTok, a creator can introduce you to something you didn’t even know you needed. Think protein bars, beauty products, grocery items, or apparel. Amazon captures existing demand, while TikTok can create it. That’s an important difference for brands trying to succeed across both channels.

AI Shopping Assistants Are Changing Product Discovery

Of course, we had to talk AI. With Amazon expanding Alexa’s shopping capabilities, I wanted to know what happens to brands that rely on search rankings and advertising. Scott says advertising isn’t going anywhere, but brands need to rethink their product content. AI assistants need to understand who a product is for, how it’s used, and why someone should buy it. The more context brands provide, the better positioned they may be for AI recommendations.

Traditional Search Still Matters

Despite all the excitement around AI, Scott reminded me that traditional Amazon search remains incredibly strong. Alexa is still more of an assistant than the primary shopping experience, and Amazon is introducing additional advertising opportunities within it. For brands, the takeaway is pretty straightforward: keep investing in what works today while preparing for how consumers might shop tomorrow.

The ONE Metric Brands Should Be Tracking

I wrapped up by asking Scott which competitive metric matters most on Amazon. His answer? Revenue, but only when you understand it in the context of category growth. He used creatine as an example. If the category is doubling and your brand is growing 50%, you’re actually falling behind. It’s not enough to know your own numbers. You need to understand how your competitors and the overall category are performing.

Growing Doesn’t Always Mean Winning

That last point really stuck with me. Whether it’s Amazon, TikTok Shop, or AI-powered shopping, brands have more opportunities than ever to reach consumers. But growing sales doesn’t necessarily mean you’re gaining market share. The real question is whether you’re growing faster than your competition. And as Scott made clear, having the right data to answer that question is becoming more important than ever.

Be careful out there,

Chris and the entire Omni Talk team

You can listen to or watch the full conversation with Chad Lusk, Partner and Managing Director at A&M Consumer and Retail Group, wherever you get your podcasts.

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