Amazon strikes deal with Snap to let users buy its products from ads on Snapchat
Amazon has entered into a partnership with Snap to allow users to buy its products directly from ads on the social app, the company confirmed to TechCrunch. The news was first reported by The Information. The Amazon ads on Snapchat will display real-time pricing, delivery estimates, product details and Prime eligibility, the e-commerce giant told TechCrunch.
Customers can choose to link their Snapchat account to their Amazon account through a one-time set-up. Once the accounts are linked, users can complete a checkout with Amazon in the product ad using their default Amazon shipping address and payment method, without leaving the social app. The company says 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.
Amazon’s partnership with Snap will allow the e-commerce giant to better compete with TikTok, which recently launched TikTok Shop in the United States, allowing brands and creators to sell product directly on the social app. Although Amazon is massive and has a lot of clout, TikTok still poses a threat because it’s able to reach younger millennials and Gen Z users. By exposing its products to young users on Snapchat, Amazon has the potential to reach customers it may not have been able to otherwise. Plus, it can display products to them that they may not think about buying when they complete their regular purchases directly on Amazon.
The deal with Snap is similar to Amazon’s partnership with Meta, which was announced last week and allows users to purchase Amazon products directly from ads on Instagram and Facebook. The e-commerce giant also has a partnership with Pinterest, announced back in April, that allows users to discover and buy relevant products through shoppable content.
It’s worth noting that the partnerships with Snap and Meta come as Amazon has repeatedly tried to scale its own versions of social apps like Instagram and TikTok. The company has a TikTok-like shopping feed that supports both photos and videos, but it feels overly commercialized when compared to other uses of social media for shopping.
Amazon’s deals with social networks will also help it compete with Shein, which has been looking to expand its business in the United States. The discount retailer recently inked a deal with Forever 21 that will allow it to sell Forever 21 clothing and accessories on its site, while Shein will be able to test customer-focused experiences at Forever 21 locations across the United States, including shop-in-shops and in-store returns.
On the other hand, the deal will likely also be beneficial for Snap and its advertising business, which has been struggling over the past few years. Following the news of Amazon’s deal with Snap, the social app’s shares were up more than 9%.
Snap declined to comment on the matter.
