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Amazon says it will run shopping ads on Snap

(Reuters) - Amazon.com said on Monday it would allow Snapchat users in the United States to buy some products directly from the app as the e-commerce giant looks to capitalize on the growing use of social media for shopping.

Shares of the social media firm surged more than 9% on the news.

With social networks increasingly influencing shopping trends and patterns, some platforms such as TikTok are launching their own online shopping services, while others like Snapchat are allowing e-commerce firms to tap into their subscriber base.

Amazon also has similar tie-ups with Facebook-owner Meta Platforms and Pinterest. Its partnership could help aid a recovery in the advertising business of Snap, which reported better-than-expected earnings last month.

"The battle with TikTok is on, and the partnership will help Amazon compete in the more impulse-driven, serendipitous type of shopping that happens on social media," said Jasmine Enberg, a principal analyst at Insider Intelligence.

Enberg added that the move might help Snap position itself as a major shopping destination, something it has struggled to do previously.

The tie-up will allow customers to shop directly from Amazon ads on Snapchat and check out without leaving the app, the Seattle-based company said in an e-mail statement.

Potential buyers would also be able to see real-time pricing, Prime eligibility, delivery estimates and product details on select Amazon product ads in Snapchat, it added.

Snap declined to comment on the news, which was first reported by The Information.

(Reporting by Arsheeya Bajwa, Devika Nair and Anirudh Saligrama in Bengaluru; Editing by Nivedita Bhattacharjee and Anil D'Silva)

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