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Snapchat planning to enable commerce to sell products via its Discover platform

Snap could soon enable commerce on Discover as it looks for new revenue models with products including Spectacles

  • Published: April 13, 2018 3:45 PM IST

Snap, the parent of social messaging application Snapchat, is planning to turn “Snapchat Discover” into a shopping platform. The company is reportedly testing a new commerce feature on Discover which will allow users to buy products from both Snap and other leading brands.

According to Digiday, Snap has begun testing its commerce function within a handful of Snapchat Discover publisher channels. The report cites multiple sources with direct knowledge about Snapchat commerce testing and Snap’s plan to introduce the feature. “A handful of Discover publishers have already tested this option, which lets users swipe up and buy a product from the recently launched store inside Discover that also offers Snapchat merchandise like sweatshirts and hats.”

Interestingly, Snap is not planning to take a cut of the revenue from sales of product on its Discover platform. The feature could act as a launchpad for the second-generation Spectacles from Snap. Facebook-owned Instagram, the main competitor of Snap, has also integrated a commerce platform where users can buy products directly from the accounts owned by brands like DJI.

With the first version of Spectacles, Snap relied on a model where the wearable devices was displaced from a vending machine, installed at select locations. With the second generation Spectacles, Snap might sell them directly through Discover, which will help it streamline the model and get rid of those vending machines, which served well for start but did not fuel the sales. Snap reportedly lost $40 million from unsold inventory of first generation Spectacles. The second generation Spectacles were recently spotted on FCC listing revealing it will bring support for 802.11ac WiFi standard, which relies on the 5GHz band to enable faster file transfer.

The second iteration of Spectacles are also expected to bring few design tweaks including an electronic ID label that can be accessed within the app instead of a standard FCC label seen on the inside of Spectacles’ temples in the first model. Cheddar’s Alex Heath says confidential materials including photos and user manual for second model currently referred to as Model 002 are scheduled to be published on May 26.

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The official announcement of the product might happen at Code Conference, which is scheduled to take place at the end of May. There is no clarity whether Snap sees them selling better than the first model. Snap is also working on a third model which will include two cameras and is scheduled to launch next year.

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  • Published Date: April 13, 2018 3:45 PM IST

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