Amazon offers influencers RM116 per video, sparking chorus of LOLs

Amazon.com Inc, looking to enhance its TikTok-like shopping feed, has invited influencers to create numerous videos. However, the company’s offer of US$25 per video – approximately one-tenth of the prevailing rate – was met with widespread criticism on social media.

Amazon reached out to selected influencers via email, requesting them to submit videos featuring two or more products. The e-commerce giant stated that it would compensate each creator up to US$12,500 for a maximum of 500 videos that meet the company’s criteria, according to screenshots of the message shared on social media. Amazon intends to limit the initiative to 35,000 videos, equivalent to US$875,000 in value.

Amazon declined to provide any comments on the matter.

In December of last year, Amazon introduced Inspire, a TikTok-like feed of photos and videos tailored to users’ preferences, showcasing products available for purchase on Amazon’s web store. The aim is to enable consumers to serendipitously browse and discover products, similar to their experience on social media platforms, rather than just search for specific items.

For many years, Amazon relied primarily on free customer reviews to attract shoppers. However, it has recently begun incorporating more advertising on the site, primarily in the form of paid placements in search results, similar to Google.

Amazon’s venture into social commerce necessitates a continuous supply of fresh videos and products to keep users engaged. The reaction to the company’s TikTok-esque effort has been mixed. Nevertheless, Amazon appears determined to make Inspire a more captivating platform.

This development is notable considering that TikTok has recently expanded its own e-commerce features into key markets, including the US and the UK. Users can now shop directly through posts and live streams, and the app, owned by ByteDance Ltd, is also developing its own fulfillment operation. Bloomberg reports that the app is projected to generate US$20 billion in merchandise sales on its platform this year and has been aggressively hiring retail experts to bridge the gap between its social media success and shopping capabilities.

The challenge for Amazon lies in creating content that can compete with TikTok, which has been successfully doing this for years. Offering US$25 per video may not be sufficient, although creators are eligible for commissions if their work leads to sales, as confirmed by an individual familiar with the matter.

While rates may vary based on various factors such as an influencer’s following, Brands Meet Creators, an industry consulting firm, states that creators typically charge around US$212 for the type of content Amazon is seeking.

Jazmine Flores, a beauty content creator and makeup artist, informed Bloomberg that she usually charges US$300 for each photo or video. Flores mentioned that she has never been asked to produce 500 videos at once, typically limiting it to five. She added, “I don’t think everyone has 500 Amazon items sitting in their homes,” emphasizing the time-consuming nature of the job, which involves research, production, modeling, acting, hairstyling, and makeup application, all while being a homeschooling mother of two. “It shouldn’t be treated as a side gig,” she stated. – Bloomberg