Through a statement to TechCrunch, the company confirmed it has partnered with Snap and this partnership will see users buy Amazon products directly from ads on social app. The news was first reported by The Information. According to the Amazon e-commerce giant, the Amazon ads will be displayed on Snapchat with real-time pricing, delivery estimates, product details, and Prime eligibility.
Customers can link their Snapchat account to their Amazon account once during setup. After linking accounts once, users will be able to check out with Amazon from the product ad in the social app using the default shipping address and payment method on their Amazon account without leaving the app. Snapchat reportedly has opened up in-app shopping with Amazon for some products advertised on Snapchat and sold by Amazon or by independent sellers in Amazon's store.
The partnership will enable e-commerce giant Amazon to be more competitive with TikTok, which recently debuted TikTok Shop in the United States, allowing brands and creators to sell directly on the social app. While Amazon is enormous and has many weapons at its disposal, this threat still comes from TikTok because it can reach younger millennials and Gen Z. By exposing its products to young users on Snapchat, Amazon can reach customers it would have otherwise not been able to. And also display products to them that they may not think of buying when they complete their regular purchases directly on Amazon.
The deal with Snap is somewhat in the lines of an Amazon alliance that was announced last week, whereby it allows users directly to purchase Amazon products from ads on Instagram and Facebook. Even the e-commerce giant had a deal with Pinterest that was announced way back in April, whereby it allows users to discover and purchase relevant products through shoppable content.
It's worth noting that partnerships with Snap and Meta come at a time when Amazon has repeatedly tried to scale its own versions of social apps like Instagram and TikTok. It has a TikTok-like shopping feed that supports both photos and videos, but it feels overly commercialized in comparison with the other ways social media is being applied towards shopping.
Amazon's partnerships with social networks will also help the company compete against Shein, which has set its sights on entry into the United States market. In one such move, the discount retailer recently signed an agreement with Forever 21 in which Shein will be allowed to sell Forever 21 apparel and accessories on its website, while Shein will pilot customer-centric experiences at Forever 21 stores across the United States, including shop-in-shops and in-store returns.
On the other hand, the deal will probably be good for Snap and its advertising business, which has had it easy for the last two or three years. The social app shares soared by more than 9% after the news of Amazon's deal with Snap.
Snap declined to comment on the matter.