Meta has partnered with Amazon to introduce a new feature enabling users to connect their Facebook and Instagram accounts to Amazon, facilitating seamless purchasing of products through promotions in their feeds.
The new feature was introduced first in the US. Amazon additionally highlighted that the introduced in-app shopping functionality will be accessible for specific products promoted on Facebook or Instagram. These products can be either sold directly by Amazon or by independent sellers on Amazon's storefront.
“For the first time, customers will be able to shop Amazon’s Facebook and Instagram ads and check out with Amazon without leaving the social media apps. Customers in the U.S. will see real-time pricing, Prime eligibility, delivery estimates, and product details on select Amazon product ads on Facebook and Instagram as part of the new experience,” an Amazon spokesperson, Callie Jernigan, said in a statement to TechCrunch.
Users will undergo a one-time setup by linking their Meta account (either Facebook or Instagram) to their Amazon account. Once this process is finalised, they can seamlessly make purchases through Amazon directly from the product ad without exiting their Facebook or Instagram app. The sale will be completed using their default shipping address and payment information stored on Amazon.
Meta has never been in favour of Apple's App Tracking Transparency (ATT) since its introduction in 2021, arguing that it would adversely impact small businesses reliant on personalised ads.
In its e-commerce initiatives, Meta has been transitioning its Shops sellers to utilise its own checkout experience on Facebook and Instagram, imposing processing fees on those sales, with exceptions for shops powered by Shopify. In the case of the new deal with Amazon, where Amazon manages its own payments, Meta will not be adjusting processing fees.
This arrangement is advantageous for Amazon as well. While Amazon has made attempts to launch social apps similar to Instagram and TikTok, such as the Instagram-like service Spark (shut down in 2019) and the TikTok-like shopping feed called Inspire (launched in late 2022), these efforts have not achieved significant success. Despite being available to all U.S. customers since May, Inspire is perceived as more commercialised compared to TikTok, lacking the influential influencer content that typically drives sales.