Amazon (AMZN) Cleverly Partners Zappos with Pinterest in New 'Group Buying' Effort
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According to reports out Wednesday, Amazon.com (Nasdaq: AMZN) is entering the "group buying" market in one of the most creative (and devious) ways possible. The e-Commerce giant is partnering-up its Zappos unit with wildly popular social project sharing site Pinterest.
Zappos launched the site PinPointing, which suggests Zappos products based on what Pinterest users are posting. The aim is to broaden the knowledge of what Zappos offers, as well as sell a few items in the process. Okay, it's not the pure definintion of "group buying" ala Groupon (Nasdaq: GRPN); it's more like a "social buying" effort.
Though the two companies aren't officially signing an agreement, Zappos did get approval for the move from Pinterest.
Users can share recent purchases via Pinterest, Twitter, and Facebook (Nasdaq: FB), though a rep for Zappos said most of the sharing is done through Pinterest.
Started in 2010, Pinterest has become one of the most visited sites on the Internet, according to recent Shareaholic data. The privately-held company has sourced about $100 million in backing from such companies as eBay (Nasdaq: EBAY) PayPal founder Max Levchin, Japan-based Rakuten, and Bessemer Venture Partners.
Here's another interesting fact Zappos pointed out: despite users being 13 times more likely to share a purchase on Pinterest and eight times on Facebook than on Twitter, Twitter posts brought in multiples more revenue. The rep said sales from Twitter were $33.66 per order, compared with $2.08 per order on Facebook and just 75 cents for Pinterest.
This, of course, might be skewed due to the amount of sharing done on each social site. Still, multiplying 75 cents by 13 garners you much less than $33.66.
Shares of Amazon are indicated higher Wednesday morning.
Zappos launched the site PinPointing, which suggests Zappos products based on what Pinterest users are posting. The aim is to broaden the knowledge of what Zappos offers, as well as sell a few items in the process. Okay, it's not the pure definintion of "group buying" ala Groupon (Nasdaq: GRPN); it's more like a "social buying" effort.
Though the two companies aren't officially signing an agreement, Zappos did get approval for the move from Pinterest.
Users can share recent purchases via Pinterest, Twitter, and Facebook (Nasdaq: FB), though a rep for Zappos said most of the sharing is done through Pinterest.
Started in 2010, Pinterest has become one of the most visited sites on the Internet, according to recent Shareaholic data. The privately-held company has sourced about $100 million in backing from such companies as eBay (Nasdaq: EBAY) PayPal founder Max Levchin, Japan-based Rakuten, and Bessemer Venture Partners.
Here's another interesting fact Zappos pointed out: despite users being 13 times more likely to share a purchase on Pinterest and eight times on Facebook than on Twitter, Twitter posts brought in multiples more revenue. The rep said sales from Twitter were $33.66 per order, compared with $2.08 per order on Facebook and just 75 cents for Pinterest.
This, of course, might be skewed due to the amount of sharing done on each social site. Still, multiplying 75 cents by 13 garners you much less than $33.66.
Shares of Amazon are indicated higher Wednesday morning.
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