Meta and Amazon Collaborate to Introduce In-App Shopping Feature on Facebook & Instagram

Meta and Amazon Collaborate to Introduce In-App Shopping Feature on Facebook & Instagram

Tech news

Nov 17, 2023
Meta, formerly known as Facebook, may have shifted its focus away from live shopping on its platforms, but it still sees the potential in transforming its social apps into shopping hubs. The latest development is a collaboration between Meta and Amazon, enabling users to connect their Facebook and Instagram accounts with their Amazon accounts for a seamless in-app shopping experience. This integration allows customers to shop through Meta’s social apps with the convenience of checking out using their saved Amazon payment information and shipping to their preferred Amazon mailing address. An Amazon spokesperson, Callie Jernigan, confirmed this groundbreaking partnership, stating, “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.” Moreover, customers in the United States will have access to real-time pricing, Prime eligibility, delivery estimates, and product details on select Amazon product ads within Facebook and Instagram. This in-app shopping feature will apply to specific products advertised on Facebook or Instagram, both from Amazon itself and independent sellers on Amazon’s storefront. To begin using this feature, users will perform a quick one-time setup, linking their Meta account (either Facebook or Instagram) to their Amazon account. Once completed, they can make purchases directly from the product ad, all without leaving the Facebook or Instagram app. Amazon’s default shipping address and payment information will be utilized for a hassle-free checkout process. This collaboration was initially revealed by Maurice Rahmey, a partner with Meta and Google Ads and co-CEO of Disruptive Digital, in a LinkedIn post. Rahmey emphasized the benefits of this partnership, including improved targeting and optimization for Meta, resulting in higher conversion rates and tailored ad messaging for users. Additionally, this collaboration offers a potential revenue boost for Meta, Amazon, and advertisers by providing more ad signals and attributable conversions, ultimately circumventing challenges posed by Apple’s App Tracking Transparency policy. Meta’s stance against Apple’s App Tracking Transparency has been consistent since the feature’s introduction in 2021, primarily to protect small businesses relying on personalized ads. In the realm of e-commerce, Meta has been transitioning its Shop sellers to its own checkout experience on Facebook and Instagram, accompanied by processing fees. However, Amazon’s integration will not impact these fees, as Amazon handles its payment processing in this arrangement. Amazon stands to gain from this partnership as well. The e-commerce giant has attempted to launch its social apps in the past, with limited success. Despite offering an Instagram-like service called Spark and a TikTok-style shopping feed named Inspire, these initiatives failed to gain significant traction. Inspire, launched last year, pales in comparison to TikTok in terms of influencer-driven content that drives sales. This partnership between Meta and Amazon arrives at a time when TikTok is also venturing into the e-commerce space with TikTok Shop, which launched in the United States in September. With over 150 million users on TikTok, this could pose significant competition for Amazon, especially considering TikTok’s reach among younger consumers from Millennials to Gen Z and even Gen Alpha.

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