Huge traffic portal! Amazon and social platforms join forces

Amazon faces double crisis during peak season?

The strike happened during the peak season, causing many of Amazon's popular warehouses to be unable to operate normally, and warehouses were overwhelmed and delayed. A seller in the big selling circle said that his costs increased by hundreds of thousands of yuan a month. He had predicted that Amazon would have worker strikes and warehouse overwhelmed, so he shipped the goods by slow ship in August, but still could not escape the fate of skyrocketing storage fees. The reason was the double decline in Amazon's traffic and order volume? ?

Amazon is facing a traffic crisis.

Recently, everyone must have noticed that Amazon's traffic is decreasing and advertising costs are increasing. Amazon itself also finds itself on the verge of a traffic crisis, and is also facing a joint crackdown by platforms such as Tik Tok and Temu.

Amazon is finally fighting back! Amazon will work with Meta to launch new in-app shopping features on Facebook and Instagram platforms.

The new cooperation will be a huge traffic portal!

Amazon and Meta join forces

Recently, media reported that Amazon and Meta have reached a cooperation agreement to launch new in-app shopping functions on Meta's two major social platforms, Facebook and Instagram, to create an e-commerce closed loop.

One of the well-known representatives of social e-commerce is Tik Tok. As a short video sharing platform, Tik Tok has 1.5 billion monthly active users, of which more than 150 million are from the United States. Tik Tok launched its American store this year, where users can directly click on the products displayed by the merchant to enter the purchase link while browsing short video entertainment. In the cross-border circle where countless e-commerce platforms have emerged, Tik Tok's social e-commerce has undoubtedly opened up a new sales channel.

Not long ago, Amazon also called on influencers to make more Amazon short videos and give corresponding rewards. However, Amazon started as an e-commerce sales platform, while Tik Tok started as a short video platform. Although Amazon has a high national reputation, the public likes to watch short videos to kill time, which has created a user base for Tik Tok's US store. If Amazon wants to make short videos like Tik Tok, it will obviously increase its own operational difficulties.

Meta has always wanted to realize its e-commerce dream. It has tried Shop before, but the effect was not good. Since it is impossible to achieve both at the same time, joining forces is the most appropriate choice.

Meta not only realized its e-commerce dream, but also focused on its own users; Amazon not only recovered traffic but also boosted sales, which can be said to be a win-win result.

E-commerce platform "socialization" is a new trend

Recently, market analysis agency eMarketer released a "2023 Social Commerce Forecast Report", which shows that by 2027, per capita sales of social commerce in the United States will double, and is expected to increase from US$627.8 in 2023 to US$1,223.7.

At the same time, the report also pointed out that it is the increase in the amount spent by each consumer, rather than the increase in the number of new buyers, that drives sales growth, which means that consumers' recognition and preference for the "social + e-commerce" shopping model is increasing.

YouTube, as a video software, has also started to launch shopping functions. It is obvious that social e-commerce has become a new outlet for the current development of e-commerce. Amazon has quickly launched countermeasures to the new trend, launching the "Inspire" function and the "Ask a Friend" function, and now it has joined forces with Meta.

Social shopping is growing rapidly, which is an opportunity that sellers cannot miss.