After Meta, E-commerce Giant Amazon Taps Snapchat For In-App Shopping Feature
Amazon announced that it will enable Snapchat users in the U.S. to make direct purchases from the social media platform for select Amazon products. Customers will be able to shop straight from Amazon ads for Snapchat and check out without ever leaving the app thanks to the partnership. The move is part of the e-commerce giant’s strategy to profit from the rising popularity of social media shopping.
Rise of social media influence on e-commerce firms
Some platforms, like TikTok, are launching their own online shopping services as a result of social networks’ growing influence on shopping trends and patterns. Conversely, e-commerce companies can access the subscriber base through other social media platforms such as Snapchat.
Benefits to Snapchat from the e-commerce integration
Snap, which has reported higher-than-expected revenue and user growth over the last three months, would benefit from the deal. Additionally, the data shows that marketers are reverting to using smaller platforms like Snapchat.
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Amazon – Snapchat partnership
On some Amazon products, prospective customers will also be able to view real-time pricing, Prime eligibility, delivery estimates, and product details on Snapchat. It comes after the e-commerce behemoth’s agreement with Meta, which permits users of the online retailer to link their Facebook and Instagram accounts to Amazon and make purchases straight from the social media platforms. Amazon and Pinterest have a similar partnership. The collaboration might facilitate Snap’s advertising business’s comeback.
Here’s what they said
Amazon spokesperson said in a statement,
Customers in the U.S. will see real-time pricing, Prime eligibility, delivery estimates, and product details on select Amazon product ads in Snapchat as part of the new experience. In-app shopping with Amazon is available for select products advertised on Snapchat and sold by Amazon or by independent sellers in Amazon’s store.
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Meta and Amazon Collaborate for In-App Shopping in FB and IG
Amazon and Meta have partnered to make it easier to connect Facebook and Instagram accounts to Amazon. Customers will be able to purchase merchandise featured in their feeds without ever leaving the mobile app thanks to this. Interestingly, users can deliver goods to their chosen Amazon mailing addresses and complete transactions using their saved Amazon payment information. Only certain products that are promoted on Facebook or Instagram, either by Amazon directly or by independent sellers on Amazon’s storefront, are eligible for this in-app shopping feature. Meta can facilitate the process of allowing retailers to sell products on Facebook and Instagram without having to set up unique storefronts on those platforms by collaborating with Amazon.
The in-app shopping feature
This feature is referred to by the company as “Purchase with Amazon without leaving Facebook or Instagram.” A related support page has also been updated. India cannot currently access the page, but it is still accessible in the United States. The goal of this change is to prevent users from leaving their feeds while making purchases on Amazon, keeping them inside the app.
Image credit- TechCrunch
Users must complete a quick one-time setup in order to link their Amazon account to their Meta account (either Facebook or Instagram). Customers can easily make an Amazon purchase from the product ad after this is set up, without having to exit the Facebook or Instagram app. After that, the payment details and default shipping addresses that are saved on Amazon are used to finalize the sale.
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Benefits for advertiser
Users of Meta can now click on advertisements on Facebook or Instagram to visit a shop-like experience within the apps, making purchases simple and quick. Customers can make purchases using their linked Prime account without providing credit card information.
Improved ad signals: In order to boost customer investment, Meta receives more ad signals from the top online retailers and more attributed conversions.
Higher transaction fees: Due to its superior mobile discovery and ads engine, Amazon receives higher transaction fees than other retailers, which translates to more sales on its platform.
Increased conversions: With an extra sales channel and a 1:1 measurement between their most likely top ad platform and retail partner, merchants can increase the volume of conversions they generate.
Image credit- ITP Live
How will the in-app shopping feature help Meta and Amazon?
In an effort to increase ad revenue in the wake of Apple’s 2021 iOS privacy changes, Meta has decided to incorporate Amazon into its apps. It had an effect on both the digital ad market and Meta’s operations. However, the business recovered in 2023 following three quarters of declining revenue. According to Meta, the company’s investments in artificial intelligence have enabled it to attract retailers who are seeking to provide customers with personalized promotions.
Through their partnership, Meta and Amazon are able to profit from the benefits that each other offers. With its intent-based business strategy, Amazon can increase its market share. Moreover, it can assist retailers in attracting new clients who might not have actively looked for their goods. On the other hand, users can get targeted ads from Meta without having to actively search for them. This is thanks to its discovery-based business model. Data integration between the two platforms could be a crucial component of this. It includes Meta and Amazon sharing at least some insights that could better inform relative marketing strategies, ad performance, etc.
Amazon’s previous integrations
Amazon’s integration with Facebook and Instagram comes after a similar, mutually beneficial partnership between Pinterest and Amazon. Signed in April, the multiyear agreement between Pinterest and Amazon ads aims to increase the amount of shoppable content. Furthermore, it looks to improve the platforms’ selection of relevant brands and products. It also establishes Amazon as Pinterest’s first-party advertising partner. The collaboration may make it easier for customers to make purchases.
Here’s what they said
Amazon spokesperson, Callie Jernigan said
For the first time, customers will be able to shop Amazon’s Facebook and Instagram ads and check out with Amazon without leaving the social media apps. Customers in the U.S. will see real-time pricing, Prime eligibility, delivery estimates, and product details on select Amazon product ads on Facebook and Instagram as part of the new experience.
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