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Meta and Amazon Join Forces

Discover the groundbreaking collaboration reshaping online shopping. Click the link for the full scoop!

TikTok's exponential growth has not only shaken up social media platforms but has also made significant strides in the realm of e-commerce with the introduction of TikTok Shop. In response to TikTok's dominance, tech giants Meta and Amazon are uniting forces to explore new dimensions in the digital commerce landscape.

In this blog, we'll delve into the implications of this collaboration and the potential benefits it brings to sellers and advertisers.

The Rise of TikTok

With users spending an average of 52 minutes per day on its platforms, TikTok has become  one of the most widely used digital services in the United states. So it is not surprising that it has decided to expand its tools, going from being a viral video platform to an ecommerce platform with the launch of TikTok Shop.  

This new product allows users to search for and purchase products of interest from the social network through a dedicated e-commerce tab that will be enabled in the application's interface. The proposal provides search and purchase recommendations from live videos.    

With this proposal, Tiktok positions itself not only as a threat to other social networks, but also to ecommerce platforms.                                                

The Meta-Amazon Alliance:

This historic partnership allows users to seamlessly shop on Amazon directly through the Instagram app. Users can link their Meta and Amazon accounts, enabling them to make purchases on Amazon without leaving the Facebook or Instagram app. This integration not only streamlines the shopping experience but also poses a challenge to TikTok's e-commerce endeavors.

Not only will this prevent sales through TikTok, but it will also give users a more seamless experience when shopping directly from the Facebook and Instagram apps. By partnering with Amazon, Meta can make it easier for stores to sell products on Facebook and Instagram without creating custom storefronts on those apps.

The collaboration benefits both Meta and Amazon, especially because it comes at a time that was critical for Meta as he was recovering from challenges posed by IOS 2021 privacy changes. This collaboration signifies a significant chapter in Meta's quest to diversify and boost advertising revenues.

Also, Meta aims to simplify the selling process on Facebook and Instagram by leveraging Amazon's established infrastructure, eliminating the need for custom storefronts. Additionally, the partnership facilitates data exchange, enabling Meta to optimize ad targeting using certain information from Amazon. Advertisers gain the ability to personalize messages based on Prime membership and other user details, creating a more effective advertising strategy.

Simultaneously, it marks a strategic move for Amazon, which has previously attempted to establish its own social platforms but with limited success. Its first attempt came with Spark, which closed in 2019. It was a social network similar to Instagram. Then came Inspire, this time with a similar style to TikTok, however, it has also not been very successful due to the fact that it feels overly commercialized, lacking the more influencer content that drives sales on the Chinese social network.

Implications for Sellers and advertisers

For Amazon sellers, this partnership opens up new avenues for advertising on Meta platforms. The in-app shopping feature is designed for specific products advertised on Facebook or Instagram and sold by Amazon or independent sellers on Amazon's storefront. While user activity on Amazon remains private, this collaboration offers a fresh approach for advertisers to showcase their products effectively.

In addition, the exchange of data between platforms is expected to improve ad campaigns in Meta, allowing targeting by new characteristics such as delivery location, if the user is prime, and so on.

The alliance of the moment?

The Meta-Amazon alliance marks a significant shift in the e-commerce landscape, providing novel opportunities for sellers and advertisers. As both companies navigate the evolving digital landscape, advertisers, sellers, and consumers alike can anticipate a more integrated and streamlined shopping experience. Stay tuned for more insights as this dynamic collaboration unfolds, reshaping the future of online commerce.

If you're ready to take your business to the next level, schedule a free consultation with Felix Media. Just click on the button on the top right and find out how to expand the reach of your ecommerce.

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