In a strategic move to enhance the shopping experience on its social media platforms, Meta has partnered with Amazon to introduce a new in-app shopping feature on Facebook and Instagram, according to a report by TechCrunch.
Through this collaboration, users can link their Facebook and Instagram accounts to their Amazon accounts, enabling seamless shopping within Meta's social apps.
(Photo : LIONEL BONAVENTURE/AFP via Getty Images)
This picture taken on October 5, 2020 in Toulouse, southwestern France, shows logos of US social networks Facebook and Instagram on the screens of a tablet and a mobile phone.
Shop Directly from Amazon Ads
Amazon confirms that customers will have the unprecedented ability to shop directly from Amazon's Facebook and Instagram ads, completing the purchase without leaving the social media apps.
This integration allows users to leverage their saved Amazon payment information and shipping address, streamlining the checkout process. The feature will display real-time pricing, Prime eligibility, delivery estimates, and product details for select Amazon product ads on Facebook and Instagram.
It must be noted that this in-app shopping experience is limited to specific products advertised on Facebook or Instagram and sold either by Amazon or independent sellers on Amazon's storefront.
To enable this feature, users need to link their Meta account to their Amazon account in a one-time setup. After this integration, users can make purchases directly from the product ads within the Facebook or Instagram app, utilizing their default shipping address and payment information from Amazon.
The deal between Meta and Amazon was initially revealed by Maurice Rahmey, co-CEO of Disruptive Digital and a Meta and Google Ads partner. Rahmey outlined the advantages of the collaboration, emphasizing that Meta stands to gain improved targeting and optimization by utilizing Amazon's data.
This includes personalized ads based on information from Amazon and stores offering the "Buy with Prime" feature. The partnership is expected to enhance conversion rates as users can swiftly complete transactions.
Moreover, Meta has the capability to customize advertising messages and product pages based on the user's Prime membership status, making adjustments to particulars like real-time pricing and shipping estimates.
Revenue Prospects
Rahmey envisions substantial revenue prospects arising for Meta, Amazon, and advertisers from this collaboration. Meta is poised to gain from improved ad signals and measurable conversions, while Amazon can capitalize on increased transactions originating from prominent discovery platforms.
Significantly, the partnership is viewed as a strategic response to challenges presented by Apple's App Tracking Transparency policy, forming a self-contained performance engine, according to Rahmeny.
Meta's strategic move is in line with its overarching e-commerce strategies, including the transition of its Shops sellers to utilize the checkout experience on Facebook and Instagram.
Despite Meta imposing processing fees on these sales, the fact that Amazon independently handles payment processing indicates no alterations in Meta's fee structure.
For Amazon, this collaboration represents an opportunity to reinforce its standing in social commerce, especially considering its previous endeavors to launch social platforms such as Instagram and TikTok.
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