Are You Using Closed Loop Shopping for your Brand?

You might have heard that Meta is opening up closed loop shopping on FB and Instagram for Amazon.

This means when you click on an Amazon ad on Instagram or Facebook, you’ll be taken directly to a Shops-like experience to make the purchase with your Prime account directly in-app.

This is a big deal.

To start with the conversion rates would be much higher for the native shops on FB and Insta.

Secondly, it bypasses the Apple App tracking policy, making it a true closed loop performance engine.

But what does it mean for your ecommerce brand?

These large partnerships (3.03 billion users for FB) and (2 billion users for Instagram) moving to a closed loop shopping experience is an indication of things to come.

If you are running an e-com operation and you have noticed that your CAC (Cost to acquire a customer) is constantly rising, you need to find alternatives quickly.

To start with, sit with your CFO and understand the actual net margins you are making on each transaction.

Now, compare it with the CAC to get a clear picture.

You would be surprised to see the outcome.

In case, you need more insights, reach out us here or join the DMD group here.