Snap shares closed lower in the US Monday, as the social media platform announced a new partnership with Amazon. Snap users will be able to focus their camera on something they like, an Amazon card will then pop up and the user can be redirected to the Amazon site to potentially make a purchase.
Snap shares ended the US Monday trading session 2.03% lower at $8.95. However, the stock is currently in the green in out-of-hours trading. Amazon shares, meanwhile, closed 1.01% higher at $1,934.36 and is also a little in the green, out-of-hours.
Snap’s visual search
Snap announced the roll out of this new feature in a blog post Monday.
“Beginning this week, we're testing a new way to search for products on Amazon right from the Snapchat camera,” the tech firm said.
“It's super easy to use. Simply point your Snapchat camera at a physical product or barcode, and press and hold on the camera screen to get started. When the item or barcode is recognized, an Amazon card will appear on-screen, surfacing a link for that product or similar ones available on Amazon,” snap said.
The user then taps on the card and they will be redirected to the Amazon app and can view the product on the etailer’s site and make a purchase should they wish.
The feature is being rolled out slowly and only a few US users will have access to it, to begin with.
No financial details
The blog post was descriptive as to how the new feature works. However, few additional details were shared and none of the financial aspect of the agreement.
It’s possible that Amazon may pay Snap commission on each purchase made from a redirect from its platform, as with other deals, but right now, that’s just conjecture.
Meanwhile, the agreement between the two tech firms is good news for Snap and could be one way to help the firm put a halt to its slowly declining user numbers.