Amazon hopes sales via Instagram, Facebook and TikTok will spur growth

Amazon is hoping that sales of its goods through TikTok, Facebook, Instagram and Snapchat will revive sluggish e-commerce growth as American consumers rein in spending in a hyperinflationary environment.

According to the report, the Seattle-based online retailer engaged in two years of difficult negotiations with CEOs of other tech giants that ended with a partnership despite opposition from within Amazon’s ranks.

According to a report from The Information, Amazon CEO Andy Jassy met separately with his Meta counterpart Mark Zuckerberg, as well as Snap CEO Evan Spiegel and TikTok CEO Shou Zi Chew to discuss the 24-month partnership.

However, there was some debate at Amazon before the meetings about whether to partner with other sites, amid concerns that doing so would encourage online shoppers to migrate to those apps rather than purchase products through the company’s main site, The Information reported.

Amazon shares have been trading more than 3% lower in the past month after the company said online sales growth slowed in the second quarter as consumers seek cheaper options amid persistent inflation.

However, supporters of the change argued that allowing customers to buy goods on Amazon through the social media app would spur growth of the company’s e-commerce sector.

In November, Amazon rolled out an initiative known as “Project Handshake” — which saw it start running ads on Meta-owned Facebook, Instagram, and Snapchat, offering users the ability to purchase products from Amazon without having to leave those apps, according to The Information.

An Amazon spokesperson allayed concerns about the decline in traffic, telling The Post that ads placed on social media apps don’t drive customers away from the Amazon app, but make it easier for them to buy products where they already are.

“Amazon is making it easier for customers to shop on social media by expanding in-app purchasing,” an Amazon spokesperson told The Post.

Amazon employees working on ‘Project Handshake’ plan to expand the initiative so shoppers can find and buy products through videos and AI-powered chatbots, report says

Post turned to Meta, Snap, and TikTok for company.

Selling Amazon products through competitor sites is a radical departure for the online retail giant, whose corporate culture has long promoted the idea of ​​the company’s home page becoming a one-stop shop for e-commerce.

Skeptics fear that allowing other apps to broker Amazon purchases could erode Amazon’s dominance in the e-commerce sector.

According to eMarketer, in the U.S. alone, approximately 40% of all online purchases are made on Amazon.

The irony of Amazon joining forces with Meta and TikTok is that these companies are also trying their hand at e-commerce.

TikTok has launched TikTok Shop, which allows users to purchase products directly in the app.

Meta allows Facebook and Instagram users to set up stores on their sites.

Another potential downside for Amazon is the risk the new partnership poses to its $40 billion annual advertising business.

Amazon charges sellers high fees to increase the visibility of their products so that buyers can browse them by entering a query in the search box.

As reported by The Information, these ads will not be visible to users of other apps who purchase Amazon products without logging in to the service.