February 2, 2018

Snap Inc launches “Snap Store” to drive brand loyalty, not revenue

Today, Venice, California-based company, Snap Inc has launched a new merchandise store called the Snap Store. The goal is not to generate money yet, but it verifies the prospective for an in-app commerce platform for other brands.

The Snap Store, which exists in the Snapchat app’s Discover section, allows the Snapchatters to buy Snapchat merchandise. Snapchatters can scan the Snap Code under the Snapchat camera in order to open the store and purchase exclusive items that would only be offered for a limited time. The new feature is launched in the app with offering Dancing Hot Dog Plush Doll for $19.99, Streak Hat for $29.99, Winkface Sweatshirt for $49.99 Dog Lens Tee for $29.99 and Bring Back Best Friends Sweatshirt for $49.99. It is not developed to generate revenue for Snap Inc., though, despite missing revenue objectives previous quarter. A Snapchat spokesperson provided no official comment, but told that the feature is aimed at its community. Basically, it is a way to encourage brand loyalty, though it also provides the company some free marketing as people wear the gear.

However, if the company can use its own Snap Store to demonstrate the potential for in-app e-commerce, it could possibly generate a real revenue stream for charging brands a cut of what they sell on Snapchat or convincing them to purchase ads promoting their stores.

Snapchat has sold a few items previously, like a Dancing Hot Dog Halloween costume and Ghostface Chillah backpack  on Amazon, and it also sold its Spectacles camera sunglasses through its pop-up shops, Snap Bots, retail partnerships and online. However, now the company is running its own sales of the third-party produced merchandise, and seems to have pulled everything off except Spectacles of Amazon.

Mobile commerce could be exceptionally annoying. Between slow loading websites, an unchanged array of choices and need to provide all payment details, thousands of users leave before they hit Buy. Snapchat could provide a way for top brands to access a premium teen audience in a way that makes shopping a continuous part of the social experience.

Users can visit the website of Snap Store for the Snapcode, they would be given the option of entering the Snap Store where they can tap through the current items for sale and choose to buy. The Snap Store would also appear in the platform’s Discover section when latest products are added. The merchandise is making shipments only in the United States right now.

The company is projected to announce its 2017 earnings on Tuesday.

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