Snapchat announced today they are slowly releasing a new function the app app that allows users to take a snap (image) and then use the image to search for items on Amazon.
“Simply point your Snapchat camera at a physical product or barcode, and press and hold on the camera screen to get started. When the item or barcode is recognized, an Amazon card will appear on-screen, surfacing a link for that product or similar ones available on Amazon.”
When the user taps the selection, it will open the Amazon App (if installed on the phone) or open Amazon’s website in the smartphone browser.
Now a user can complete the purchase or keep browsing for other products.
Snapchat and eCommerce
The monetization of Snapchat has been a standing question mark since the company went public.
While the company says it is a camera company and found success with a younger audience, Instagram has copied many of its more popular features on its much larger platform.
Instagram has also been more aggressive to bring eCommerce integrations to its platform, suggesting that it may be on the verge of becoming a de facto marketplace to challenge eBay or Etsy.
Snap’s foray into eCommerce has been almost non-existent. Add that the company is suffering from a loss of DAUs (Daily Active Users), and it is easy to see why so many on Wall Street have lost faith.
Just this month several analysts downgraded the stock further, and it already had lost about 33 percent of its value over the last 12 months.
With this mind, the news that Snapchat is rolling out a test for an eCommerce integration with Amazon may bring a positive direction to the company.
This new linkup may suggest that it could add more marketplaces and online retailers to the fold with an open API similar to how Instagram is now offering shoppable posts.
But the big problem will continue that Snapchat’s demographic strength is in the under 18 market. And that likely limits the eCommerce potential unless its younger audience continues to use the platform as adults.
The company calls the Amazon shopping integration a test. But it might need this test to be hugely successful if it wants to get out of the doghouse from Wall Street.
What do you think about Snapchat’s integration with Amazon and what it may mean for its future?
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