Why Amazon’s in-app shopping move can’t be ignored

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Amazon has inked a deal with Snapchat allowing users to buy products directly from the app. This follows similar a partnership with Meta for Facebook and Instagram users to link their social profiles to Amazon and buy products directly within their feeds. 

This means users can shop and checkout of Amazon ads without leaving the social media apps, which collectively have more than 40.5 million users in Australia alone. The move allows Amazon to tap into new markets and expand its customer base.

While this will first roll out in the US, Australia will be soon to follow in 2024. Nick Morgan, founder and CEO of content commerce and in-stream checkout pioneer, Vudoo discusses the impact of this news to local retailers and brands.

A transformational effect on ecommerce

Amazon’s integration with major social platforms such as Snap and Meta is a strategic move which sets a new standard for online shopping experiences.

“These partnerships have effectively blurred the lines between social browsing and shopping by enabling purchases directly from social media feeds,” Morgan said.

“This new, frictionless experience, when deployed at scale, will redefine customer expectations and drive significant adoption and revenue. Adapting this model is essential to remain competitive and relevant in a rapidly evolving digital marketplace. Shoppable advertisements can build brand loyalty, increase conversion rates, and capture market share.

“Our technology platform allows consumers to immediately purchase items from an ad at the point of inspiration. This presents a powerful opportunity for retailers and brands to boost conversion, engagement and loyalty.”

How the agreements benefit social media platforms

These partnerships have transformed platforms like Snap and Meta from being communication channels into multifaceted marketplaces.

“Collaborating with the ecommerce giant gives platforms a significant uptick in user engagement and retention, creates lucrative revenue streams through partnerships and sophisticated advertising models, and provides access to rich consumer data from purchasing behaviour within apps to inform platform development and targeted ad campaigns,” Morgan explained.

“Moreover, these integrations enable social media apps to deliver more comprehensive and convenient consumer experiences. As social commerce continues to evolve, these agreements will help maintain dominance and relevance, and strengthen user loyalty and satisfaction.”

Extending customer reach outside of their walled gardens

Retailers and brands need to look beyond their traditional digital boundaries to take advantage of the evolving ecommerce landscape, according to Morgan.

“It’s important to embrace a strategy utilising multiple digital platforms where their target audiences are active. This approach should focus on having a presence on different channels and on creating a smooth and integrated customer experience across them,” he said.

“By partnering with platforms like Meta and Snap, retailers and brands can tap into a broader and more diverse user base, resulting in better exposure and engagement. However, to significantly enhance reach, leveraging technologies such as interactive content commerce software is crucial. This robust solution enables brands to create personalised experiences that drive engagement and conversion.

“As a result, businesses can own the checkout experience regardless of the online or digital property. This provides greater control and data to fine-tune their strategy outside their walled gardens or proprietary platforms.”

Taking advantage of shoppable ad units

Shoppable ad units are gaining popularity among retailers and brands as the lines between advertising and shopping continue to blur. According to GroupM, retail media revenue in 2023 was expected to hit US$119.4 billion and forecasted to grow by more than 8% this year.

“These advertisements allow businesses to convert interest into action instantly, reducing the steps from discovery to purchase, and ultimately collapsing the sales funnel and improving conversion. This immediacy is crucial in capturing the attention of the modern, digitally savvy consumer,” Morgan said.

“In today’s hyper-competitive retail space, where brands are vying for online eyeballs and clicks, shoppable ads provide valuable data insights into consumer preferences and behaviour. With full-funnel attribution, brands can fine-tune their marketing strategies and product offerings.

“The partnerships between Amazon and social media platforms is proof that shoppable ads will drive business growth and become a game-changer for the whole industry.”