Amazon hopes to sell its goods through TikTok, Facebook, Instagram and Snapchat Slowing e-commerce growth will pick up again As American buyers Cutting spending in an environment of hyperinflation.
The Seattle-based online retailer held two years of high-stakes negotiations with the CEOs of other technology giants that culminated in a partnership despite disagreements within Amazon, according to a report.
Amazon CEO Andy Jassy met separately with his Meta counterpart Mark Zuckerberg, as well as Snap CEO Evan Spiegel and TikTok CEO Shu Zi Chew to discuss the partnership over a 24-month period. As per the information.
However, before the meetings, there was debate inside Amazon over whether it would be wise to collaborate with other sites, as there were fears it would lead online shoppers to migrate to those apps and not purchase products through the company's home page, The Information reported.
Amazon shares have fallen more than 3% in the past month. Online sales growth is slowing Amid inflation in the second quarter, consumers are looking for cheaper options.
But supporters of the move argued that allowing shoppers to purchase goods on Amazon through social media apps would boost growth in the company's e-commerce sector.
In November, Amazon launched an initiative it dubbed “Project Handshake” — under which it began running ads on Meta-owned Facebook, Instagram, and Snapchat offering users a way to purchase items from Amazon while within those apps, according to The Information.
An Amazon spokesperson dismissed concerns about a drop in traffic, telling The Post that ads placed on social media apps don’t distract customers from the Amazon app but rather make it easier for them to buy products from places they already are.
“Amazon is making it more convenient for customers to shop on social media by expanding in-app shopping,” an Amazon spokesperson told The Post.
The report said Amazon employees working on “Project Handshake” are planning to expand the initiative to allow shoppers to discover and purchase products via video and artificial intelligence-powered chat bots.
The post has sought support from Meta, Snap, and TikTok.
The move to sell Amazon products through competing sites is a radical shift for the online retail giant, whose corporate culture has long promoted the notion of making the company's home page a one-stop shop for e-commerce.
Skeptics fear that allowing other apps to serve as conduits for Amazon shoppers could end Amazon's dominance in the e-commerce space.
In the US alone, Amazon accounts for nearly 40% of all online purchases. According to eMarketer.
The irony of Amazon joining forces with Meta and TikTok is that these companies are also entering e-commerce.
TikTok has launched TikTok Shop, which allows users to purchase products directly within the app.
Meta allows users of Facebook and Instagram to set up stores on their pages.
Another potential disadvantage for Amazon is that this new partnership could threaten its $40 billion-a-year advertising business.
Amazon charges merchants a hefty fee to increase the visibility of their products so shoppers can browse them when typing in a search prompt.
But according to The Information, these ads will not appear to users of other apps who purchase Amazon products without logging into the site.
