Meta and Amazon Team up on New In-App Shopping Feature on Facebook & Instagram

Meta and Amazon Team up on New In-App Shopping Feature on Facebook & Instagram – Although Meta has shifted away from live shopping on Facebook and Instagram, the company remains committed to leveraging its apps as shopping platforms. In a recent development, Meta is collaborating with Amazon, enabling users to connect their Facebook and Instagram accounts to their Amazon accounts. 

This integration allows users to shop through Meta’s social apps, utilizing their saved Amazon payment details and shipping to their designated Amazon mailing address. “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,” an Amazon spokesperson, Callie Jernigan, confirmed in a statement. 

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“Customers in the U.S. will see real-time pricing, Prime eligibility, delivery estimates, and product details on select Amazon product ads in Facebook and Instagram as part of the new experience,” she said. Amazon has highlighted that the new in-app shopping feature will apply to specific products promoted on Facebook or Instagram, available either through Amazon directly or independent sellers on Amazon’s storefront.

To begin, users need to perform a quick one-time setup by linking their Meta account (Facebook or Instagram) to their Amazon account. Subsequently, they can seamlessly check out with Amazon directly from the product ad without exiting the Facebook or Instagram app. The transaction utilizes their default shipping address and payment information stored on Amazon. The initial disclosure of this collaboration came from Maurice Rahmey, a Meta and Google Ads partner and co-CEO of Disruptive Digital. 

In a LinkedIn post, Rahmey outlined the advantages, emphasizing that Meta stands to benefit from enhanced targeting and optimization through Amazon’s data. This partnership enables more efficient ad conversions as customers can complete transactions swiftly. Additionally, Meta gains the ability to tailor ad messaging and product pages based on the user’s Prime membership status, adjusting details such as real-time pricing and shipping estimates accordingly.

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“While additional details are still scarce, this partnership could be a massive revenue opportunity for Meta, Amazon, and most importantly, advertisers,” Rahmey wrote, adding that Meta will get more ads signal and more attributable conversions, while Amazon will get more transactions from large discovery platforms. In addition, Rahmeny wrote, “Because of the shared data of this partnership, this also bypasses any challenges with Apple’s App Tracking Transparency policy, meaning a true closed loop performance engine.”

Since the introduction of Apple’s App Tracking Transparency (ATT) in 2021, Meta has consistently opposed the privacy feature, arguing that it could negatively impact small businesses reliant on its personalized ads. In parallel efforts within its e-commerce initiatives, Meta is transitioning its Shops sellers to utilize its proprietary checkout experience on Facebook and Instagram. While Meta imposes processing fees on these sales, exceptions apply to shops powered by Shopify, where Shopify manages the charges. 

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Notably, in the context of the new collaboration with Amazon, Meta will maintain its existing processing fees, as Amazon handles its own payments. This collaboration also proves advantageous for Amazon. Despite previous attempts to create social apps akin to Instagram and TikTok, such as Spark and the TikTok-like shopping feed Inspire, Amazon’s ventures in this space have not achieved notable success. 

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The Inspire service, available to all U.S. customers since May, has been criticized for feeling overly commercialized and lacking the influential influencer content present on platforms like TikTok. The Meta-Amazon deal occurs amid TikTok’s efforts to compete with Amazon by serving as both a discovery engine and e-commerce storefront. TikTok Shop, launched in the U.S. in September, reaches over 150 million users, posing a credible threat to Amazon, especially considering TikTok’s strong presence among younger Millennial, Gen Z, and even Gen Alpha consumers.

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