In a groundbreaking move, Meta and Amazon are reshaping the online shopping experience. This initiative leverages the strengths of both tech giants, combining Amazon’s comprehensive e-commerce platform with Meta’s extensive social network reach.
The news was initially shared on LinkedIn by Maurice Rahmey, the co-founder and CEO of Disruptive Digital. Rahmey says this partnership could result in better conversion rates for both platforms.
New Meta-Amazon partnership
Amazon spokesperson Callie Jernigan confirmed the rollout, saying: “Customers will be able to shop Amazon’s Facebook and Instagram ads and check out with Amazon, without leaving the social media apps.”
Jernigan says users in the US will also see real-time pricing, delivery estimates, product details, and Prime availability.
Facebook and Instagram users will be prompted for a quick one-time setup to link their Meta accounts with their Amazon account. Then, users will be able to complete their purchases without having to close the app.
Advertisers and revenue
In terms of advertising and revenue potential, Rahmey explains this partnership could “be a massive revenue opportunity for Meta, Amazon, and most importantly, advertisers.” He says Meta gets more ads coverage while Amazon gets more transaction fees.
What does this mean for advertisers? “Merchants get to expand their conversion volume with an additional sales channel and 1:1 measurement between their likely top ad platform and retail partner.”
App tracking transparency
This partnership also circumvents the challenges posed by Apple’s App Tracking Transparency (ATT) Policy, first introduced as a privacy feature in 2021. Meta has opposed this policy since its inception, claiming it would hurt small businesses relying on personalized ads.
Rahmey says circumventing Apple’s ATT policy means “a true closed loop performance engine. […] This partnership could be the catalyst to help merchants understand how big of an advertising opportunity there is beyond direct-to-consumer with the right strategic approach.”
The timing of this partnership is interesting. TikTok has been reinventing itself as an e-commerce platform, launching a storefront in September and helping small business owners maximize their social reach.
The bigger picture
Since TikTok’s social footprint spans more than 150 million users, Amazon for the first time faces a threat as an e-commerce giant. TikTok is especially popular among Gen Z and Millennials – a combined online audience of approximately 81 million.
ALSO READ: Unpacking TikTok’s e-commerce guide for small businesses
A 2016-survey conducted by BigCommerce suggests that 67% of millennials – roughly 58 million according to Online Dasher calculations – prefer to shop online. Meanwhile, 32% of the 72 million (approximately 23 million) Gen Zers also prefer the convenience of online shopping.
Then, to a lesser extent, there’s Generation Alpha, who are predicted to reach some 2.2 billion globally by 2025. Approximately 36 million of them began using the internet this year.
Born after 2010, they currently make up 23% of the global population. While still pre- or early-teens, they are growing up as environmentally conscious, “super-informed, and constantly-connected consumers,” according to Shopify.
The Meta-Amazon deal thus marks a significant shift in e-commerce, representing a blend of social media reach and online retail efficiency. It’s a bold move towards redefining the digital marketplace while staying ahead of the TikTok game.
About the author
Cheryl has contributed to various international publications, with a fervor for data and technology. She explores the intersection of emerging tech trends with logistics, focusing on how digital innovations are reshaping industries on a global scale. When she's not dissecting the latest developments in AI-driven innovation and digital solutions, Cheryl can be found gaming, kickboxing, or navigating the novel niches of consumer gadgetry.
