Snapchat Meets eCommerce

Snap Inc. is expanding its commitment to the growing eCommerce market to diversify its business with potential new revenue streams and deployment opportunities related to social commerce.

The eCommerce market is predicted to reach USD 4.1 trillion by 2023, and Snap Inc. is serious about cashing in on it. According to its Q4 2022 earnings report, the company has fast-tracked commerce integrations within its platform, which has features similar to an eCommerce marketplace. Through it, businesses can reach Snapchat users by setting up product catalogs and using augmented reality (AR) filters to deliver an immersive online shopping experience.

In 2022, Snap Inc. partnered with BigCommerce, a software as a service (SaaS) provider that works with thousands of retailers, who can now seamlessly showcase their catalogs and run shopping ads on Snapchat thanks to this partnership. Moreover, Snap Inc. has made strides with its augmented reality platform, engaging more than 300,000 AR developers to create more than 3 million AR lenses. Leveraging Snap Inc.’s latest features, brands can now enhance their eCommerce reach by letting customers try on garments, earrings, and wrist accessories.

Companies that have partnered with Snap Inc. to promote their eCommerce activity in this way include Walmart, H&M and Luxottica's Sunglass Hut. Walmart conducted over 161 million product trials with 35 million Snapchatters using Snapchat's Catalog-Powered Shopping Lenses. Luxottica's Sunglass Hut also used the same feature to offer customers more than 14 million virtual try-ons. Meanwhile, H&M's new Camera Kit integration allows the brand to offer customers an AR try-on experience of its immersive AR fashion.

The growing figures and list of features suggest that Snap Inc.’s foray into eCommerce may be here to stay. Blending AR and eCommerce to engage younger consumers is definitely a bold move. It will be interesting to see if it pays off in the future and if other brands will jump on this exciting trend.