Amazon.com, Inc (NASDAQ:AMZN), world’s largest online retailer entered an agreement with Twitter Inc (NYSE:TWTR) to add its shopping cart feature on the popular microblogging site that would allow users to shop directly from tweets with an Amazon product link.
In a statement, the companies said consumers whose accounts on Twitter Inc (NYSE:TWTR) are already linked to Amazon.com Inc (NASDAQ:AMZN) will be able to add items on their shopping cart by just clicking reply with the hashtag#Amazon Cart.
Twitter Inc (NYSE:TWTR) will not receive sales commission from every product purchased through links on tweets, but Amazon.com, Inc (NASDAQ:AMZN) will increase its budget for advertising products on the microblogging site, according to a person with knowledge about the deal, but requested anonymity from Bloomberg because the terms were not disclosed to the public.
Amazon.com Inc (NASDAQ:AMZN) released a promotional video regarding the availability of the new shopping cart feature on Twitter Inc (NASDAQ:AMZN). The e-commerce giant emphasized that consumers can “Add it now [referring to products], Buy it later.”
A spokesperson for the e-commerce giant pointed out, “Twitter offers a great environment for our customers to discover product recommendations from artists, experts, brands and friends. #AmazonCart was designed to help customers add products to their cart now without leaving Twitter and come back later to shop and buy on Amazon.” The spokesperson added that Amazon.com, Inc (NASDAQ:AMZN) is open to working with other social network companies.
The popular microblogging site is adding tools to help advertisers and retailers to help them reach its 255 million users. Twitter Inc (NYSE:TWTR) also wants its users to use its platform longer, and examine their interests and shopping habits, which is significant to advertisers. Last year, the company hired Nathan Hubbard, a former executive at Ticketmaster as head of commerce to boost its strategy.
Twitter CEO Dick Costolo stated last week that consumers shopping on its platforms will have a real-time experience similar to the rest of the Twitter experience. Costolo said, “I think about our commerce opportunity as commerce in the moment.”
“This is an example of the constant innovation both Amazon and Twitter are using to push social shopping forward, but I don’t think it’s going to be a huge needle mover for either company. More and more people are showing items they’ve bought on Twitter, so it might be a way for followers to buy something more quickly,” said CRT Capital analyst Neil Doshi as quoted by the Associated Press (AP).