Meta and Amazon Have Joined Forces to Introduce a New In-App Shopping Feature on Facebook and Instagram

While Meta may have halted its live shopping endeavors on Facebook and Instagram, it remains committed to leveraging the shopping capabilities of its apps. As a result, the company has recently partnered with Amazon, enabling users to connect their Facebook and Instagram accounts with their Amazon accounts. This integration facilitates shopping through Meta's social apps, allowing users to seamlessly utilize their saved Amazon payment details and have their purchases shipped to their designated Amazon mailing address.

“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,” an Amazon spokesperson, Callie Jernigan, confirmed in a statement to TechCrunch.

“Customers in the U.S. will see real-time pricing, Prime eligibility, delivery estimates, and product details on select Amazon product ads in Facebook and Instagram as part of the new experience,” she said.

Amazon has highlighted that the newly introduced in-app shopping feature will specifically be accessible for certain products promoted on Facebook or Instagram. These products must be either sold directly by Amazon or offered by independent sellers on Amazon's online storefront.

To initiate the process, users need to perform a brief one-time setup by connecting their Meta account (either Facebook or Instagram) to their Amazon account. Once this setup is finished, they can proceed to make purchases directly through the product ad without exiting their Facebook or Instagram app. The sale will be finalized using their default shipping address and payment information stored on Amazon.

The information about the collaboration was initially disclosed by Maurice Rahmey, a Meta and Google Ads partner, and co-CEO of Disruptive Digital. In a LinkedIn post, Rahmey outlined the advantages of the partnership, emphasizing that Meta stands to enhance its targeting and optimization capabilities by leveraging data from Amazon. The integration with stores offering "Buy with Prime" enables more effective ad presentation to consumers, leading to improved conversion rates due to faster checkout processes. Furthermore, Meta can customize ad messaging and product pages based on the user's Prime membership status, allowing for real-time adjustments to details such as pricing and shipping estimates.

Maurice Rahmey pointed out that although specific information is limited at the moment, this collaboration has the potential to be a significant revenue opportunity for Meta, Amazon, and advertisers alike. He explained that Meta stands to benefit from increased ad signals and attributable conversions, while Amazon can expect more transactions originating from prominent discovery platforms. The synergy between the two tech giants, along with the involvement of advertisers, suggests a mutually advantageous arrangement with substantial financial prospects.

In addition, Rahmeny wrote, “Because of the shared data of this partnership, this also bypasses any challenges with Apple’s App Tracking Transparency policy, meaning a true closed loop performance engine.”