Amazon Join Forces with Snap to Sell Its Products on App; Snap’s Shares Soar After Deal Announcement

Amazon Inc. and Snap Inc. struck a deal for a shopping feature on the latter’s popular app. The social media company agreed to include Amazon shopping ads on its Snapchat platform so users can directly buy products from those posts.

The news about Amazon and Snap’s partnership comes just a week after the e-commerce firm also secured a similar deal with Meta Platforms. According to Reuters, the advertisement deal for Snapchat will initially be rolled out to users in the United States.

How Shopping via Ads on Snapchat Works

Users of Snap’s social media platform will be able to buy any items from the online retailer without being redirected to its Amazon.com website. They can comfortably do their shopping through the Snapchat app - in real-time.

The platform will run Amazon ads and people can instantly make purchases through the postings that will also show the prices of the products. Prime eligibility and estimated time of delivery will also be on display while shopping.

“Customers in the U.S. will see real-time pricing, Prime eligibility, delivery estimates, and product details on select Amazon product ads in Snapchat as part of the new experience,” the spokesperson of Amazon said in a statement. “In-app shopping with Amazon is available for select products advertised on Snapchat and sold by Amazon or by independent sellers in Amazon’s store.”

Snap’s Shares Surge on the Amazon Deal

CNBC reported that shares of Snap Inc. went up on the day when its latest partnership with Amazon was revealed. The company’s stock price soared by eight percent.

Business analysts said that this marketing strategy is a win-win for both companies. This is because the two sides already have a large number of users and the exposure that each company can give to their partners through the deal is very advantageous for sales.

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