Amazon Forges Strategic Alliance with Snap to Enable In-App Shopping
In a strategic move, Amazon has teamed up with Snap to empower users to make direct purchases from Amazon products featured in ads on the popular social app, Snapchat. The collaboration, confirmed by Amazon to TechCrunch and initially reported by The Information, aims to enhance the shopping experience by displaying real-time pricing, delivery estimates, product details, and Prime eligibility within the Snapchat platform.
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To facilitate this seamless integration, customers have the option to link their Snapchat accounts with their Amazon profiles through a one-time setup. Once linked, users can effortlessly complete the checkout process directly within the product ad, utilizing their default Amazon shipping address and payment method—all without leaving the social app. Amazon specifies that this in-app shopping feature is currently available for select products advertised on Snapchat, either sold directly by Amazon or by independent sellers in the Amazon store.
This collaboration positions Amazon to compete more effectively with TikTok, which recently introduced TikTok Shop in the United States, enabling brands and creators to sell products directly on the social app. While Amazon holds considerable influence, TikTok's ability to engage younger millennials and Gen Z users presents a competitive challenge. By showcasing its products on Snapchat, Amazon gains access to a demographic it might not reach otherwise, presenting potential opportunities to introduce products not typically considered during regular Amazon purchases.
This agreement mirrors Amazon's recent partnership with Meta, announced last week, allowing users to make Amazon product purchases directly from ads on Instagram and Facebook. Furthermore, Amazon's association with Pinterest, revealed in April, enables users to discover and purchase relevant products through shoppable content.
It's noteworthy that these collaborations coincide with Amazon's efforts to establish its versions of social platforms like Instagram and TikTok. While Amazon has a shopping feed reminiscent of TikTok that supports both photos and videos, its commercialized feel contrasts with the more organic shopping experiences on other social media platforms.
These strategic alliances also position Amazon to better compete with Shein's expansion plans in the United States. The discount retailer recently inked a deal with Forever 21, allowing it to sell Forever 21 products on its site, while also experimenting with customer-focused experiences at Forever 21 locations.
This collaboration is anticipated to benefit Snap and its advertising business, which has faced challenges in recent years. Following the announcement of the Amazon-Snap deal, Snap's shares experienced a positive uptick of over 9%.
