Pinterest x Amazon! Pinterest has announced a multiyear partnership with Amazon.
Though the companies have not commented on how the ads will be presented to the end users, I think it’s likely that Amazon products will be linked and well-integrated with content on Pinterest.
🤠 Good move?
I think yes. As an incumbent social platform that focuses on “inspiration boards”, Pinterest is well-positioned to capture part of the product-discovery segment within the US social commerce market.
❓Questions in mind
No doubt, it’s time for Pinterest to make a move towards social commerce, but is a partnership the best way to go about it? Could ad integrations with e-commerce SMBs be a better move?
Though an interesting strategic move, this article is not about Pinterest and Amazon.
Let’s break down what social commerce looks like in the US and what it’s lacking!
🛍️ For the Gen-Zs
Gen-Z is quickly becoming the most influential shopper in the US. This has also meant that e-commerce has been pushed towards a more social and community-oriented activity.
Gen Zs also have different shopping needs. Studies show that while millennials focus more on convenience, brands need to focus a lot more on ‘product discovery’ to capture Gen Zs.
Three critical stages that differentiate Gen Z shoppers?
This means that making shopping social has become a lot more critical than before for both brand and social or e-commerce platforms alike.
🇺🇲 Untapped opportunities
Today, the social shopping experience in the US is still incomplete.
We’ve got Chinese platforms like Temu entering the market to grab a piece of the pie, and we’ve also got incumbent social players like Instagram, Facebook, and Pinterest, trying different strategies.
Notably, the market is more fragmented than any. There’s a startup for almost every mini-functionality that is missing. An example is link-in-bio websites for creators to link additional products on links on their social media pages.
While China might be our peak into the social-commerce future, it is more likely that new standalone platforms in the US take center stage, OR, older players finally crack the code.
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